Search results

This study investigates the effect of ownership structure – ownership concentration and firm ownership – on outward foreign direct investment (OFDI) by emerging market multinational enterprises (EMNEs), and further explores the moderating effects of international experience and migrant networks on this relationship.

Data of Chinese MNEs listed on Shenzhen and Shanghai stock exchanges between 2005 and 2016 are used. The empirical analysis is based on the negative binomial regression model.

The empirical results reveal a significant inverted-U relationship between ownership concentration and OFDI by EMNEs. State ownership is found to have a positive effect on OFDI by EMNEs. Both international experience and migrant networks strengthen the inverted-U relationship between ownership concentration and OFDI as well as the positive effect of state ownership on OFDI by EMNEs.

EMNEs need to maintain a moderate ownership concentration when conducting OFDI, and they are supposed to make full use of their own international experience and focus on migrant networks of the host country. Policy-makers in emerging economies need to better create a fair business environment for enterprises.

Combining agency theory and the resource-based view, this study integrates ownership structure, firm-level heterogeneous resources – international experience and country-level heterogeneous resources – migration networks into a framework to study OFDI by EMNEs, which expands the scope of research in international business.

The authors aim to discuss the impact of research and development (R&D) internationalization on emerging market enterprises' (EMNEs') innovation efficiency, as well as the moderating effects of top management team (TMT) human capital.

The authors empirically tested the hypotheses based on Chinese listed manufacturing company data from 2008 to 2017.

R&D internationalization helps to increase EMNEs' innovation efficiency. Incorporating TMT human capital into this framework, the authors found that international experience, education level and technical background would all strengthen the above relationship.

First, the authors contribute to the R&D internationalization literature by providing the first empirical evidence that R&D internationalization will influence EMNEs' innovation efficiency. Second, this study enriches the research results on the driving factors of enterprise innovation efficiency and expands the related research results on the relationship between R&D internationalization and production efficiency. Third, the research highlights the prominent position of TMT human capital in the relationship between R&D internationalization and EMNEs' innovation efficiency, which strengthens the contextual characteristics of the “R&D internationalization-innovation performance” framework.

In developed markets, emerging market multinational enterprises (EMNEs) seem to be more discriminated by host country nationals than foreign developed market multinational enterprises (DMNEs). They are challenged with host country nationals’ prejudices and face a stigma of being from emerging markets. While literature agrees that EMNEs suffer from additional disadvantages due to their country-of-origin, research fails to identify those factors that may lead to a higher discrimination against EMNEs than against foreign DMNEs.

Based on institutional theory, we look at institutional-related and resource-related antecedents that have an impact on various forms of direct and indirect discrimination by host country nationals.

Our framework analyzes the crucial differences between host country nationals’ perception of EMNEs and foreign DMNEs and the resulting challenges for EMNEs in the developed world. It enhances our understanding of the importance of institutional environments in explaining differences in host country nationals’ discrimination against foreign MNEs.

The extant literature on emerging market multinationals (EMNEs) suggest that they derive their advantages from factors such as economies of scale, and that they internationalise, in large measure, to access technology. However, support for this framework typically comes from analysis of static data, comparing EMNEs and OECD MNEs at a point in time. Little attention is paid to their development paths in a dynamic setting. We examine these propositions directly using an approach that enables us to decompose productivity growth of firms into its components, namely, changes in scale economies, technological progress and technical efficiency. We compare Chinese MNEs with their non-MNE domestic counterparts and developed country MNEs that have operations in China. We demonstrate that Chinese MNEs continue to derive much of their productivity growth from changes in scale economies, while developed country MNEs continue to have an advantage with respect to technical progress. Both these types of MNEs have a significant advantage over Chinese non-MNE domestic firms.

Despite prior studies on cross-border acquisitions (CBAs) have analyzed the determinants of ownership strategies; there is still a quest for evidence on how the differences between home and host market characteristics affect the ownership percentage. Prior studies have acknowledged that entering host countries with greater uncertainty makes multinationals reluctant to acquire high levels of ownership. Nevertheless, emerging multinationals (EMNEs) are usually used to operating under greater levels of uncertainty than multinationals from advanced countries (AMNEs), which can imply different ownership strategies. The purpose of this study is to analyze the ownership percentage acquired by MNEs when designing a CBA in emerging or in advanced countries, and to analyze the extent to which the ownership strategy in emerging countries differs between EMNEs and AMNEs.

Mobile telecommunications industry is used as research setting to provide empirical evidence of the interaction effect of the advanced versus emerging nature of the host and home countries on the ownership acquired in CBAs.

Results confirm that both home and host countries' characteristics are relevant in explaining the ownership strategies of MNEs.

The authors contribute to the strategy and IB literatures by providing empirical evidence on the recent debate on whether the internationalization strategies followed by EMNEs are similar to the traditional patterns of AMNEs, and analyze how EMNEs differ from AMNEs in their ownership strategies in emerging countries. Focusing in the mobile telecommunications industry, the authors also contribute by extending the analysis to an international and cross-cultural setting that includes 48 mobile groups that come from 35 home and 81 host countries.

The chapter provides an economic explanation and perspectivation of strategic asset seeking of multinational enterprises from emerging economies (EMNEs) as a prominent feature of today’s global economy.

The authors apply and extend the “springboard perspective.” This perspective submits that EMNEs acquire strategic assets in developed markets primarily for use in their home markets.

The authors succumb that the springboard perspective is alluring theoretically as well as empirically as it suggests that when EMNEs acquire strategic assets, they experience liabilities of foreignness (LOF) that are low relative to those of MNEs from developed markets. The authors concede to this LOF asymmetry but also point out that liabilities of outsidership (LOO) can offset or weaken the home-market advantage of some EMNEs when competing with MNEs.

LOO appears as the more relevant concept to use when explaining strategic asset seeking of EMNEs. A set of propositions are formulated to guide empirical testing.

The insights gained from using the springboard perspective and the LOO concept are non-trivial: They basically predict future dominance of ‘insider’ EMNEs at the expense of MNEs from developed markets.

Using Triad-based multinational enterprises as their empirical setting, influential scholars in international management uncovered key organizational characteristics needed to create globally integrated and locally responsive multinationals. They proposed a “modern” theory of multinationals' organization (Hedlund, 1994). But recently, a new generation of multinationals from emerging markets has appeared. Little is known about their organizational choices and some scholars even doubt that they leverage organizational capabilities altogether. Does the “modern” theory still hold in their case? This exploratory study of three emerging-market multinationals (EMNEs) discloses that for reasons related to their origin in emerging economies and to the competitive specificities of these economies, EMNEs approach the global and local conundrum in ways which are both similar – and vastly different – from recommendations of the “modern” theory. We inductively develop a new theory that accounts for the evolution of organizational capabilities in EMNEs to reconcile global integration and local responsiveness. We discuss its implications for the executives of both emerging and Triad-based multinationals.

Based on the strategy tripod perspective, this study aims to address how emerging economy multinational enterprises (EMNEs) make a strategic decision of choosing a foreign location for their strategic asset seeking and under what mechanism EMNEs make foreign direct investment (FDI) location choice.

This paper first reviews the literature on strategy tripod and strategic asset seeking strategy of EMNEs. Then, six cases of Chinese multinational enterprises operating in manufacturing industry have been introduced, emphasizing on interactions within three dimensions of strategy tripod framework, namely, resource-based dimension, industry-based dimension and institution-based dimension. By triangulating with multiple sources of archival and interview data, this paper identified a conceptual model presenting location choice mechanisms.

Based on a comparative multi-case study, four mechanisms of EMNEs’ location choice when seek strategic asset by FDI within a strategy tripod framework have been revealed. Specifically, EMNEs make their strategic decision of choosing a foreign location for their strategic asset seeking under mechanisms of seeking complementary resources based on industry characteristics; echoing with institutional dimension of home country when exploitation of resource; matching institutional dimension of host country when consider industry fitness; and institutional leveraging combined with understanding of resource and industry dimensions inside strategy tripod.

The findings shed novel insights into the mechanisms under which EMNEs choose their location for strategic asset-seeking FDI. It also broadens the strategy tripod framework by looking deeper into the characteristics of each dimension within a new research context of EMNEs’ FDI location choice.

This paper aims to analyse the impact of dynamic capability (DC) of emerging market multinationals (EMNEs) on their firm technological performance by teasing out the concepts of agility and knowledge management (KM) through DC.

Evidence from this study is contextualised on EMNEs that operate in the UK, Germany and France. This study examines the investment in intangible assets which EMNEs use to develop their DC over the period 2005-2016 and how this leads to increased firm technological performance.

Results show that higher investments in DC allow EMNEs to be more agile and gain competencies through KM and thereby sustain competitiveness in the three leading European countries. This research also identifies which EMNE groupings show greater technological performance and how such EMNE groupings are able to translate dynamic capabilities into greater technological performance compared to others over time. In summary, the role of DC during of the global financial crisis was also examined, where they are required to be more agile.

This paper sheds light on a novel way and motivation of successful EMNEs in using developed host countries as a location for generating DC through agility and KM.

The purpose of this paper is to examine the relationships between environment turbulence, knowledge transfer and innovation performance for emerging market multinationals (EMNEs) in an asymmetric international R&D alliance.

Data were collected through a survey of high-tech firms in Zhejiang Province of China from 2013 to 2015.

Innovation performance of EMNEs is positively influenced by knowledge transfer activities (knowledge replication and knowledge adaption), technological and market turbulence, while negatively influenced by institutional turbulence. In addition, different aspects of environmental turbulence moderate the relationship between knowledge transfer practices and innovation performance of EMNEs differently.

Future studies could use a longitudinal design to capture the dynamism driving innovation performance of EMNEs through R&D alliances.

Practical guidelines are provided particularly for EMNE managers on how to develop an innovation strategy by leveraging external knowledge, adaptive innovation and environmental turbulence.

This study deepens the knowledge of how EMNEs enhance their innovation by building the linkage between environmental turbulence and absorptive capacity through knowledge transfer activities in an asymmetric international R&D alliance.