Outward FDI trends from India: emerging MNCs and strategic issues

Abstract

Purpose

The purpose of this paper is to understand the int4ernationalization path(s) of emerging multinational corporations (MNCs) from India applying the existing theories. Later on, the paper aims to check for newer explanations using fresh concepts, if required.

Design/methodology/approach

The paper relies upon information from published sources and company annual reports. The authors took CNX100 firms operating in three sectors: viz. automotive, pharmaceuticals and information services, and studied their path of internationalization to draw conclusions.

Findings

Existing theories do not fully explain the internationalization process of emerging MNCs from India. The paper develops a fresh capability‐based model based on the trends that Indian firms build strategic capability before going for asset accumulation to compete at global levels. For this they use various approaches including strategic alliances, joint ventures, and technology acquisition.

Research limitations/implications

The conceptual framework has not been empirically tested.

Originality/value

The paper suggests a fresh conceptual framework “capabilities‐then‐size” that defines the strategic path firms from emerging economies can take to internationalize and compete at global level.

Citation

Singal, A. and Jain, A.K. (2012), "Outward FDI trends from India: emerging MNCs and strategic issues", International Journal of Emerging Markets, Vol. 7 No. 4, pp. 443-456. https://doi.org/10.1108/17468801211264342