How Family Firms from Emerging Economies are Responding to Inward Foreign Direct Investments

2020 ◽  
Vol 2020 (1) ◽  
pp. 18396
Author(s):  
Arindam Mondal ◽  
Somnath Lahiri ◽  
Sougata Ray ◽  
Ramachandran Kavil
Keyword(s):  
Emerging Economies ◽  
Family Firms ◽  
Foreign Direct Investments

scholarly journals Does Knowledge from Home Markets Boost Outward Foreign Direct Investments of Emerging Economy Multinationals? Evidence from Indian Family EMNEs

2020 ◽  
Vol 23 (2) ◽  
pp. 211-240
Author(s):  
Arindam Mondal ◽  
Sarada Devi Gadepalli
Keyword(s):  
Emerging Economies ◽  
Family Firms ◽  
Stock Exchange ◽  
Emerging Economy ◽  
Supporting Evidence ◽  
Foreign Direct Investments ◽  
International Expansion ◽  
Domestic Markets ◽  
Theoretical Predictions ◽  
Longitudinal Dataset

Despite increasing research on multinationals from emerging economies (EMNEs), our understanding of the antecedents of their international expansion is still limited. In this study, we seek to examine whether knowledge gained from operating in their complex and diverse domestic markets deter or aid the outward foreign direct investments of EMNEs. As family firms are dominant in emerging economies, we further explore how heterogeneity within family firms moderate this relationship. We conduct our investigations using a proprietary longitudinal dataset comprising 213 EMNEs from India featuring in the S&P Bombay Stock Exchange (BSE) 500 index covering a six-year period from 2007-08 to 2012-13, of which 175 were family EMNEs and find supporting evidence for our theoretical predictions.

Investments by Emerging-Market Multinationals in Other Emerging Markets

2018 ◽  
pp. 630-656
Author(s):  
Jing Li ◽  
Daniel Shapiro
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Emerging Economies ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Institutional Development ◽  
Spillover Effects ◽  
Investment Strategy ◽  
Future Research ◽  
Foreign Direct Investments

This chapter reviews the literature on foreign direct investments among emerging economies (E-E FDI), focusing on the motivations behind E-E FDI, country-specific advantages and firm-specific advantages associated with emerging-economy multinational enterprises (EMNEs), and spillover effects of E-E FDI on host-country economic and institutional development. We identify the following topics as posing important questions for future research: EMNEs’ ability to leverage home-government resources and diplomatic connections to promote investment in other emerging economies; nonmarket strategies of EMNEs in emerging economies; ownership and corporate governance affecting investment strategy and performance of EMNEs; E-E FDI contributions to sustainable development in host countries. Future studies should also consider potential heterogeneity among EMNEs by integrating insights from institutional theory, network theory, political science, corporate governance, corporate social responsibility, and sustainable-development research.

Technological knowledge access and transfer of multinational corporations from emerging economies: a comparison study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhang
Keyword(s):  
Multinational Corporations ◽  
Emerging Economies ◽  
Explicit Knowledge ◽  
Technological Knowledge ◽  
Foreign Direct Investments ◽  
Industrialized Countries ◽  
Content Type ◽  
Wilcoxon Rank Sum Test ◽  
The Us ◽  
Knowledge Access

Purpose This study aims to analyze the subsequent investment success of EMNCs after their strategic asset-seeking foreign direct investments (FDIs), while internationalization trajectories of multinational corporations from emerging economies (EMNCs) have been extensively studied, Post-internationalization investment success of EMNCs is defined as extensive technological knowledge access and transfer for knowledge combination. This paper focuses on EMNC explicit knowledge access and transfer. Design/methodology/approach This study analyzes US patents granted between 2000 and 2014 to leading innovation-oriented EMNCs from China and India as well as to their key competitors from mature industrialized countries (MMNCs). Wilcoxon Rank Sum Test is used to compare the explicit technological knowledge access and transfer patterns of EMNCs and MMNCs. With MMNCs as the benchmark, the comparison allows to imply the patterns and extent of technological knowledge access and transfer of EMNCs. Findings While subsidiary reverse knowledge transfer is largely missing, EMNCs adopt a parent-centric approach in which the parent directly accesses and transfers explicit knowledge from the external environment of host locations. In doing so, EMNCs at least partially achieve the knowledge access and transfer goals of strategic asset-seeking FDIs. Originality/value This study contributes to an in-depth understanding of EMNCs by empirically testing key predictions in extant EMNC literature, namely, the strategic asset-seeking in host locations and the systematic integration of accessed knowledge and resources with home country activities. This study also pioneers the use of the US patent and citation data to empirically study EMNCs.

scholarly journals Business environment and foreign direct investments: the case of selected European emerging economies

2020 ◽  
Vol 33 (1) ◽  
pp. 243-266
Author(s):  
Mladen Vučković ◽  
Vito Bobek ◽  
Anita Maček ◽  
Hazbo Skoko ◽  
Tatjana Horvat
Keyword(s):  
Emerging Economies ◽  
Business Environment ◽  
Foreign Direct Investments

scholarly journals La propuesta de reglamento estableciendo un marco para la evaluación de las inversiones extranjeras directas en la Unión Europea de septiembre de 2017 = Proposal for a regulation establishing a framework for screening of foreign direct investments into the European Union of september’17

2018 ◽  
Vol 10 (1) ◽  
pp. 164
Author(s):  
Carlos Esplugues Mota
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Emerging Economies ◽  
Foreign Investment ◽  
Direct Investment ◽  
Investment Policy ◽  
Foreign Direct Investments ◽  
The European Union ◽  
Investment Control ◽  
The Common

Resumen: Las inversiones extranjeras han aumentado de forma constante en las últimas décadas. Sin embargo, la crisis financiera y el protagonismo de algunas economías emergentes, esencialmente China, están afectando a su vitalidad. No puede hablarse todavía un cambio de tendencia, pero sí se constata una actitud de creciente prevención, cuando no de rechazo, hacia ellas. La introducción de mecanismos de control de las inversiones extranjeras refleja este cambio de actitud. La situación alcanza una particular relevancia en el seno de la UE debido, entre otros extremos al estado embrionario de la política de inversiones común La Propuesta de Reglamento de 2017 estableciendo un marco para la evaluación de las inversiones extranjeras directas en UE cumple la doble función de poner de manifiesto la relevancia del tema y de aportar un primer texto para el debate.Palabras clave: Inversiones extranjeras directas, control de inversiones extranjeras, seguridad nacional, política común europea de inversiones, mecanismos de control de inversiones extranjeras.Abstract: Foreign investment flows have increased steadily in the last decades, although the financial crisis and the role played by certain emerging economies, mainly PRC, are negatively influencing them. A change of trend is not ascertainable yet, but some backlash against foreign direct investment exists in particular countries. The development of mechanisms of control of foreign investment shows this change of attitude. The situation is especially relevant in the European Union because of the embryonic condition of the Common Investment Policy. The publication of the Proposal for a Regulation establishing a framework for screening of foreign direct investments into the European Union reflects the relevance of the topic at the same time that offers a first text for debate.Keywords: Foreign Direct Investment, Control of Foreign Direct Investment, National Security, Common Commercial and Investment Policy, Screening systems of evaluation of foreign direct investment.

scholarly journals Family generation, leadership, and performance: The role of outside directors in Indian family firms

2010 ◽  
Vol 8 (1) ◽  
pp. 646-661 ◽  
Author(s):  
Shireenjit Johl ◽  
Beverley Jackling ◽  
Mahesh Joshi
Keyword(s):  
Emerging Economies ◽  
Family Firms ◽  
Outside Directors ◽  
Corporate Leadership ◽  
Indian Family ◽  
Developed Economies ◽  
Founding Family ◽  
And Performance ◽  
Governance Reforms

This paper addresses the presence of outside directors in family firms in India examining the generation of the firm and years of operation. Aspects of corporate leadership such as family member as CEO, as well as the CEO’s role in a founding family firm, are considered in relation to financial performance. The findings show that outside directors do not significantly increase firm performance of family firms demonstrating their ineffective monitoring role. Contrary to studies from developed economies, more established family businesses in India outperform founding firms. Overall the study demonstrates that corporate governance issues related to Indian family firms differ from the findings from more developed economies. This finding has implications for further governance reforms in emerging economies.

Overcoming the Challenges of Doing Business in Africa

2014 ◽  
pp. 300-350
Keyword(s):  
Emerging Economies ◽  
Foreign Direct Investments ◽  
Effective Application ◽  
Doing Business ◽  
Strategic Initiatives ◽  
The Impact

This chapter presents a framework and suggests specific strategies to eliminate or minimize the impact of the environmental micro-challenges when doing business in Africa. The minimization of these challenges will most likely attract increased Foreign Direct Investments to Africa. The chapter discusses twenty different policy and strategic initiatives that can make Africa an attractive business region. It also thoroughly explains how effective application of these strategies has helped other regions or countries with emerging economies such as China, India, and Brazil to grow phenomenally in the last three decades.

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