Breakout multinationals: emerging-market multinationals in global value chains

2015 ◽  
pp. 91-110
Author(s):  
Pavida Pananond
Keyword(s):  
Emerging Market ◽  
Global Value Chains ◽  
Value Chains ◽  
Emerging Market Multinationals

Motives for foreign direct investment: a view from emerging market multinationals

2015 ◽  
Vol 23 (1) ◽  
pp. 77-86 ◽  
Author(s):  
Pavida Pananond
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Global Value Chains ◽  
Value Chains ◽  
Content Type ◽  
Emerging Market Multinationals ◽  
Emerging Market Firms ◽  
Selection Of

Purpose – The purpose of this paper explains how the framework on motives of foreign direct investment (FDI) needs to be rethought when analyzing emerging market multinational enterprises (EMNEs). It argues that the weak position of emerging market firms and their interdependent relationship with lead firms in global value chains (GVCs) modify the selection of internationalization motives. Design/methodology/approach – The arguments are illustrated through a critical review of the literature on FDI motives and a discussion on how the literature can be extended from looking through the lens of emerging market multinationals, particularly those with early development as suppliers in global value chains. Findings – The weak position of emerging market firms and their interdependent relationship with lead firms in global value chains modify the selection of internationalization motives on two aspects. First, internationalization decisions of EMNEs in GVCs are not undertaken in an independent manner. Rather, decisions are influenced by the initial position along the value chain and the dynamic relationships that these EMNEs have with lead firms. Second, the selection of FDI motives of these EMNEs reflects both their international expansion strategy and the upgrading effort they wish to pursue to undertake higher value-adding activities along the GVCs. Originality/value – These implications addressed in this paper add more nuances to the interpretation of FDI motives. Previously viewed mainly from the perspective of lead firms, FDI decisions are considered as independent alternatives that multinational enterprises (MNEs) can undertake to fulfill their internationalization strategy. Revisiting the FDI motives from the perspective of EMNEs reveals further insights on the interdependent nature of their internationalization, particularly reflecting the weaker position of EMNEs and their interdependent relationship with lead firms in their industry.

Conceptual Approaches to Managing in Emerging Markets

2018 ◽  
pp. 34-54
Author(s):  
Robert Grosse ◽  
Klaus E. Meyer
Keyword(s):  
Emerging Markets ◽  
Supply Chains ◽  
International Business ◽  
Emerging Market ◽  
Global Value Chains ◽  
Value Chains ◽  
Institutional Environments ◽  
International Network ◽  
Demand Patterns

This chapter raised two issues as a basis for structuring our thinking about international business in emerging markets. First, the question is raised regarding whether new theory is needed to study IB in emerging markets, or if existing theories can be extended to cover these geographic and institutional environments adequately. Second, the chapter presents the perspective of emerging markets fitting into global value chains, demonstrating how they fit into both supply chains and demand patterns. So, thinking about strategies for operating a foreign MNE in an emerging market and fitting an EM firm into an international network are both enhanced by looking at the firm(s) in the context of global value chains.

scholarly journals Resources-based modernization model: opportunities and constraints

2020 ◽  
Keyword(s):  
Developing Countries ◽  
Value Creation ◽  
Emerging Market ◽  
Global Value Chains ◽  
Value Chains ◽  
Economic Sectors ◽  
Global Industry ◽  
Current Trends ◽  
Industry Practice ◽  
Technology Advances

This monograph examines the current trends in globalization of various economic sectors, which open up prospects for new participants, countries and companies and additional sources of value creation. The behavior of companies in different global industry value chains and their response to emerging market challenges is under consideration. Revealed are the opportunities and drivers for new players, suppliers of components and services to join global value chains. The research is based on the analysis of industry practice, corporate competition, consumer trends and technology advances in developed and developing countries.

Transforming global value chains amidst the COVID-19 crisis

2021 ◽  
pp. 176-189
Author(s):  
Natalya Jurievna Rodigina ◽  
Ofeliia Andranikovna Azarova ◽  
Maria Vladimirovna Logina ◽  
Vladislav Igorevich Musikhin
Keyword(s):  
International Trade ◽  
Supply Chains ◽  
Political Institutions ◽  
Emerging Market ◽  
Continuous Production ◽  
Global Value Chains ◽  
Value Chains ◽  
Global Supply Chains ◽  
The Creation ◽  
Business Entities

The reasons for the decline in the importance of global supply chains for international trade relations may be the creation of the new, politically motivated barriers to international trade and an attempt to replace foreign-made goods with domestic counterparts. Therefore, the issue of reducing global supply chains has been discussed by many experts in recent years. However, despite the decline in their importance, global supply chains are often becoming the subject of various scientifi c research. During the crisis caused by the spread of the coronavirus infection, global value chains are criticized again for the fact that they are not functioning any longer, which, by the way, corresponds to the progressive fi nancial crisis. Amidst this background, greater “reintegration” of production processes into the company’s own network, less emphasis on the just-in-time production and expansion of warehouse capacity become priority measures aimed at ensuring continuous production of products. Of particular importance is the question of the feasibility of returning production facilities to the country of the headquarters in the light of the accelerated and eff ectively implemented robotization of production. All this poses a signifi cant threat to the sustainable economic growth of many developing countries and emerging market economies that depend on the cheap production and export of semi-fi nished products, components and the products of the intermediate use. A coordinated political response, such as that off ered by the United Nations and other multilateral political institutions and organizations, is perhaps the most promising way out of the impending economic recession. Diff erent industries will probably need diff erent time spans to return to the normal functioning. The question if globalization remains as a trend of the development of the international economic relations in the near future, will assess the viability of the concept of the international division of labour, will lead to the transformation of the global value chains, and create incentives for states and business entities for the creation of more stable structures during the forthcoming decade.

scholarly journals FOREIGN DIRECT INVESTMENT TRENDS

2020 ◽  
Vol 18 (2) ◽  
Author(s):  
Vlatka Bilas
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Global Value Chains ◽  
Value Chains ◽  
Investment Policies ◽  
Technological Advances ◽  
Innovation And Technology

The beginning of this century is characterized by deepening globalization and one of the main features of this process is global foreign direct investment flows. The relevance of foreign direct investment as a source of economic growth is inevitable and it has sound theoretical foundation. Despite this fact, many forces shaping the global economy receive a significant amount of attention, but foreign direct investment is often overlooked. Technological progress, trade and foreign direct investment are interrelated. Namely, foreign direct investment has greatly accelerated the spread of innovation and technology, while the technological advances especially in the era of Industry 4.0 have been driving the dynamics of foreign direct investment. Due to expected positive impacts, many countries are continuing policy efforts aimed at attracting foreign direct investment. However, foreign direct investment is experiencing new trends. Over the last few decades the global map of inward and outward foreign direct investment has changed significantly. There are new players with increasing roles in the global foreign direct investment area which are reshaping the world economy. Global foreign direct investment is undergoing a shift as emerging markets countries both inflows and outflows rise dramatically. For example, China’s outbound foreign direct investment has been growing dramatically in recent years, and impacted significant shifts in the global economy. Motives for foreign direct investment, as well as the type are changing due to globalization and new trends, especially high liberalization of trade. The proliferation of global value chains also influenced foreign direct investment trends. One of the examples is necessity of rethinking the framework on motives of foreign direct investment when analyzing emerging market multinational enterprises and their interdependent relationships within global value chains. The contribution of the paper is three-fold. Firstly, the paper gives an overview of key global and regional foreign direct investment trends. Secondly, key factors, as well as potential impacts of these changes are explored. Thirdly, paper offers recommendations for new investment policies.

scholarly journals Supplier strategy in global value chains: shaping governance and profiting from upgrading

2017 ◽  
Vol 17 (3) ◽  
pp. 687-707 ◽  
Author(s):  
Mari Sako ◽  
Ezequiel Zylberberg
Keyword(s):  
Value Chain ◽  
Corporate Strategy ◽  
Emerging Market ◽  
Global Value Chains ◽  
Value Chains ◽  
Technology Strategy ◽  
Governance Mode ◽  
Global Presence ◽  
Complementary Assets ◽  
Over Time

Abstract The growth of emerging market firms with a global presence highlights the need to better understand how supplier strategy influences global value chains (GVCs). We respond to this need by applying corporate strategy and technology strategy to improve the predictive and prescriptive power of GVC theory. Under what circumstances can suppliers in GVCs shape governance and profit from upgrading? Using corporate strategy, we argue that supplier strategy concerning make-or-buy decisions and buyer diversification can effect a change in governance mode. Using technology strategy, we identify appropriability regimes and complementary assets as essential preconditions for suppliers to capture value from upgrading. Our central contribution is in developing an integrative theoretical framework for analyzing how suppliers alter governance over time, and how they capture the value they create by upgrading, resulting in shifts in value chain polarity. This framework has significant implications for economic development.

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