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1 – 10 of over 30000
Article
Publication date: 27 February 2009

Rajesh K. Pillania

There is an increased interest in research and explanation for emerging markets and multinational corporations (MNCs). This paper aims to study emerging markets and MNCs.

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Abstract

Purpose

There is an increased interest in research and explanation for emerging markets and multinational corporations (MNCs). This paper aims to study emerging markets and MNCs.

Design/methodology/approach

The paper takes help of existing literature and industry examples.

Findings

The success record of MNCs from developed countries in emerging market has been mixed. The MNCs from emerging markets are now expanding and acquiring companies in developed countries at a rapid pace in recent years. This is reflected in the increasing number of emerging markets MNCs in the Fortune Global 500 list. Emerging market MNCs are giving tough competition to developed country MNCs in other emerging markets as well as Third World countries. The emerging market MNCs' power and impact has increased significantly and many of them have become household names across the world.

Research limitations/implications

MNCs play a very important role in global business. Multinationals and emerging markets have become a popular subject of research.

Practical implications

MNCs from developed countries need to understand emerging markets better. Emerging markets multinationals need to learn further in conquest for global markets.

Originality/value

This paper looks at various issues involved in multinationals and emerging markets.

Details

Business Strategy Series, vol. 10 no. 2
Type: Research Article
ISSN: 1751-5637

Keywords

Book part
Publication date: 25 September 2020

Letife Özdemir

Purpose: Through globalization, financial markets have become more integrated and their tendency to act together has increased. The majority of the literature states that there is…

Abstract

Purpose: Through globalization, financial markets have become more integrated and their tendency to act together has increased. The majority of the literature states that there is a cointegration between developed and emerging markets. How do positive or negative shocks in developed markets affect emerging markets? And how do positive or negative shocks in emerging markets affect developed markets? For this reason, the aim of the study is to investigate the asymmetric causality relationship between developed and emerging markets with Hatemi-J asymmetric causality test.

Design/methodology/approach: In this study, the Dow Jones Industrial Average (DJIA) index was used to represent developed markets and the Morgan Stanley Capital International (MSCI) Emerging Market Index was used to represent emerging markets. The asymmetric causality relationship between the DJIA Index and the MSCI Emerging Market Index was investigated using monthly data between January 2009 and April 2019. In the first step of the study, the Johansen Cointegration Test was used to determine whether there is a cointegration between the markets. In the next step, the Hatemi-J asymmetric causality test was applied to see the asymmetric causality relationship between the markets.

Findings: There is a weak correlation between developed and emerging markets. This result is important for international investors who want to diversify their portfolios. As a result of the Johansen Cointegration Test, it was found that there is a long-term relationship between the MSCI Emerging Market Index and the DJIA Index. Therefore, investors who make long-term investment plans should not forget that these markets act together and take into account the causal relationship between them. According to the asymmetric causality test results, a unidirectional causality relationship from the MSCI Emerging Market Index to the DJIA Index was determined. This causality shows that negative shocks in the MSCI Emerging Market Index have positive effects on the DJIA Index.

Originality/value: This study contributes to the literature as it is one of the first studies to examine the asymmetrical relationship between developed and emerging markets. This study is also useful in predicting the short- and long-term relationship between markets. In addition, this study helps investors, portfolio managers, company managers, policymakers, etc., to understand the integration of financial markets.

Details

Uncertainty and Challenges in Contemporary Economic Behaviour
Type: Book
ISBN: 978-1-80043-095-2

Keywords

Book part
Publication date: 1 January 2008

Hakim Ben Othman and Daniel Zeghal

Purpose – This study examines country-level attributes that impact on Corporate Governance Disclosure (CGD) depending on the emerging market country's legal…

Abstract

Purpose – This study examines country-level attributes that impact on Corporate Governance Disclosure (CGD) depending on the emerging market country's legal system.

Methodology/approach – We evaluate CGD level using 749 annual reports (year ended 2006) in 57 emerging market countries. We develop a CGD determinants model that compares differences in country level attributes between common law and civil law emerging market countries. Our model builds on a multiple regression and assumes interaction between the origin of the legal system and country-specific attributes.

Findings – Common law emerging markets have substantially higher levels of CGD than civil law ones. CGD is positively associated with the size of the capital market for the entire sample of emerging markets and for the sub-samples of common law and civil law countries. Law enforcement also has a strong positive influence on CGD in common law emerging countries, whereas it has no influence on CGD in civil law emerging countries.

Practical implications – Providing CGD levels for emerging markets helps to a better understanding of the corporate governance characteristics that prevail in each country. Decision makers (international investors, market authorities, standard setters, etc.) should be aware of how country level attributes may interact with the legal system (common law or civil law) to influence CGD.

Originality of the paper – This is one of the few papers to present evidence of the impact of country level attributes on CGD. This study contributes to identifying the attributes that influence CGD with reference to common law and civil law emerging markets.

Details

Corporate Governance in Less Developed and Emerging Economies
Type: Book
ISBN: 978-1-84855-252-4

Book part
Publication date: 29 November 2012

Annette Cerne

The management of international business activities today necessarily includes the market communication of socio-political activity in emerging markets. Critique of market…

Abstract

The management of international business activities today necessarily includes the market communication of socio-political activity in emerging markets. Critique of market communication of socio-political activity in emerging markets varies from seeing it as something organisations say rather than do to suggesting existing market communication as embracing a simplistic view of communication and socio-political activity in emerging markets. In this chapter, communication and language as social practice is introduced as a possible way to explore market communication and socio-political activity in emerging markets as part of a more complex activity. Various perspectives from philosophical and sociological traditions are used in combination with marketing and management views on and empirical examples of communication and socio-political activity in emerging markets. This chapter illustrates how market communication may be seen as socio-political activity in emerging markets rather than the audit and report of it.

Details

Business, Society and Politics
Type: Book
ISBN: 978-1-78052-990-5

Keywords

Book part
Publication date: 25 January 2021

Desalegn Abraha and Akmal S. Hyder

In conclusion, the relevance of the research implications, managerial implications, and implications for strategies in emerging markets are assessed in this chapter. The findings…

Abstract

In conclusion, the relevance of the research implications, managerial implications, and implications for strategies in emerging markets are assessed in this chapter. The findings show that future research should apply different research designs such as a focus group discussion, collect empirical data from the various levels of the chosen organizations, be quantitative, make use of hypothesis testing, do a comparative study, etc. Various managerial implications are also recommended based on the study and the conclusions drawn. Some of the implications are that management should develop a long-term learning and adaptive perspective. Management must be able to secure a full understanding of all the partners on the subject of joint venture, strategic alliances, and other forms of collaboration. Some of the implications for strategies in emerging markets are that the spectrum of competitive strategies developed by Hout et al. (1982), Jobber and Ellis-Chadwick (2013), and Ansoff (1975) is found to be relevant and applicable in emerging markets. The other strategies that deal with emerging markets were also found to be relevant and applicable in the Eastern and Central Europe market with some minor modifications and adaptations. The reader should keep in mind that some articles are referenced repetitively in research implications, managerial implications, and implications for strategies in emerging markets when they are found to be necessary for drawing implications. For the sake of clarity, implication is defined as follows: an implication is something that is suggested, or happens indirectly. It has many different senses: usually used in the plural, implications are effects or consequences that might happen in the future. When you left the gate open and the dog escaped, you are guilty by implication.

Details

Transformation of Strategic Alliances in Emerging Markets, Volume II
Type: Book
ISBN: 978-1-80043-748-7

Book part
Publication date: 1 August 2012

Deborah E. de Lange

Purpose – This chapter illustrates how agent-based modeling (ABM) simulations may be incorporated into future emerging market research so as to build and strengthen existing and…

Abstract

Purpose – This chapter illustrates how agent-based modeling (ABM) simulations may be incorporated into future emerging market research so as to build and strengthen existing and new theory. The area of strategy and organizations has used cellular automata, NK landscapes, and network simulations, but international business has rarely entertained their use. This is a loss for the area because emerging markets are rapidly growing and changing while research lags behind. Emerging markets are extremely complex environments best studied using simulations as complementary to existing research tools.

Design/methodology/approach – This chapter divides emerging market studies into three main areas including (1) foreign direct investment, (2) governance structures, and (3) international trade exporting. Through a discussion of the existing research in each of these areas, research opportunities applying ABM are identified. Illustrations allow explanation of the three agent-based simulation methods, as mentioned, based on previous ABM research in strategy and demonstrate how ABM may be applied to future emerging market studies.

Findings – A main insight is that ABM could lead to the rapid catch-up and improvement of emerging market research, especially when data for empirical work is limited, nonexistent, or prohibitively expensive to gather. ABM does not replace empirical work, but past research can be clarified and early theory developed so that if data becomes available, empirical work can be sharp and quickly realized having strong theoretical guidance.

Originality/value – This work, aimed at emerging market researchers, uniquely highlights why and how simulation tools are required and may be used in emerging market research.

Details

West Meets East: Toward Methodological Exchange
Type: Book
ISBN: 978-1-78190-026-0

Keywords

Book part
Publication date: 25 October 2014

Michał K. Lemański

The purpose of this chapter is to conceptually analyze reverse transfers of human resource management practices from subsidiaries of transnational corporations in emerging markets

Abstract

Purpose

The purpose of this chapter is to conceptually analyze reverse transfers of human resource management practices from subsidiaries of transnational corporations in emerging markets to their headquarters in developed countries.

Methodology/approach

This is a conceptual chapter based on a review of the pertinent literature. Analysis is performed at the organizational and national levels.

Findings

We identify the type of transnational corporation best positioned to learn and utilize the potential of its emerging market subsidiaries to advance its human resource management practices. We further identify the types of practices best suited for reverse transfer.

Research limitations/implications

Empirical tests of our propositions are needed. We encourage researchers to extend our research by considering the regional (supra-national), industry and individual levels of analyses.

Practical implications

Managers are informed when and where potential for learning new practices is the greatest, and are urged to scrutinize those corporate units where such potentials exist, and yet transfers do not occur.

Originality/value

Emerging markets offer substantial learning potential for transnational corporations, yet most recent studies focus on transfer of technology and product innovations from subsidiaries, leaving the transfer of human resource management practices largely unexplored. Therefore, this study advances research on organizational knowledge and innovation management, and organization of transnational corporations.

Details

Multinational Enterprises, Markets and Institutional Diversity
Type: Book
ISBN: 978-1-78441-421-4

Keywords

Book part
Publication date: 1 August 2012

Alexander Settles and Valentina Kuskova

Purpose – The purpose of this chapter is to examine methodological trends in emerging market strategy research and to provide a comprehensive review of methods of assessing group…

Abstract

Purpose – The purpose of this chapter is to examine methodological trends in emerging market strategy research and to provide a comprehensive review of methods of assessing group variation in comparative studies.

Methodology/approach – This comprises a systematic review of the methodology of emerging market research over the past 10 years, followed by methodological best practices for comparative studies involving emerging and mature markets, with exemplars from the past research.

Findings – Despite previous calls for more comparative studies in emerging market research, most of the literature is reporting on single-country studies. There is some confusion in terminology and the methods used in this area of strategy research. Increased attention to the “East” calls for a reevaluation of methods utilized in comparative studies. The methods described in this chapter present best practices for comparative research.

Social implications – More comparative studies would substantially expand our understanding of the differences between the emerging and developed markets, and the potential impact of emerging markets on global economy. Rigorous research methods extend validity and generalizability of the studies.

Originality/value – This chapter is the first study to date to analyze the methodological trends of the entire field of emerging market research over the span of 10 years and to provide systematic methodological recommendations tailored to analyzing variation in comparative studies.

Details

West Meets East: Toward Methodological Exchange
Type: Book
ISBN: 978-1-78190-026-0

Keywords

Book part
Publication date: 13 April 2015

Sylwia E. Starnawska

The UN Global Compact promotes values of precautionary approach to environmental changes and business sustainability, which are eagerly embraced by MNCs; however the recognized…

Abstract

Purpose

The UN Global Compact promotes values of precautionary approach to environmental changes and business sustainability, which are eagerly embraced by MNCs; however the recognized emerging country risks pose a challenge for continuous commitment to those principles in the subsidiaries. Especially political and currency risks are considered significant in the subsidiaries located in the emerging markets. Therefore, those risks are often shifted to the local partners as the pursued core principle of the risk management strategies. The objective of MNCs is in fact to limit MNCs responsibility for the liabilities and losses in the emerging markets in case of market downturns, and in effect the advocated risk management practices exacerbate the severity of the emerging market crises.

Methodology/approach

The chapter explores those corporate practices on the examples of numerous major international market players in case of several historical, but recent examples of the emerging market currency crises.

Findings

The concerns addressed in the chapter include: the preference for local financing exposing at risk local banking sectors in the emerging markets, excessive liquidity and minimal capital commitments and investments leading to weaker currency fluctuations and resulting in private capital speculations and capital flight (to safety or to quality). The intensified global competition for international investments in form of FDIs resulted in the erosion of the capital requirements, reduced social and business infrastructure commitments requested, limited currency controls, and other components of the regulatory framework easing in the emerging markets. Other identified in the research key components of the risk management strategies applied by MNCs, destabilizing the emerging markets in financial (both fiscal and currency) crises include: intercompany payments and financing such as: transfer pricing, local sourcing and reimbursements for both tangible and intangible assets transfer.

Implications

Demonstrated approach of MNCs appears ethically questionable and reflects the disparity of the bargaining powers. It also undermines the intentions of the Ten Principles of the UN Global Compact. The corporate citizenship is found difficult to dominate over the conflicting self-centered interests of MNCs operating in the emerging markets, especially in times of crises. The consideration of the non-compulsory ethically based initiative, as the alternative to the failing effectiveness of the international market regulations, requires restoration of the public and an individual value of the reputation (image, name) built on social responsibility and accountability, unfortunately so much diluted over the last two decades.

Originality/value

The chapter examines the effect of MNCs risk management of their foreign operations on the crises in the emerging markets with focus on inward FDIs flows and inward FDIs stock fluctuations and debt financing. The results evidence the repetitive nature of the self-interest driven corporate behavior.

Details

Beyond the UN Global Compact: Institutions and Regulations
Type: Book
ISBN: 978-1-78560-558-1

Keywords

Book part
Publication date: 4 December 2023

Bilkisu Maijamaa, M.U. Adehi, Babagana Modu and Muhammad Idris Umar

This book chapter focuses on firstly social innovation and tools used to address the social needs and foster social innovation initiatives. Looking at the world economic forum and…

Abstract

This book chapter focuses on firstly social innovation and tools used to address the social needs and foster social innovation initiatives. Looking at the world economic forum and how it supports the social innovations, currency swings, low paying jobs growing rapidly, rapid change and growth as a result of high volatility and high returns, respectively. Secondly looking at the emerging market brought about by the social innovations and how they interconnect. Leading innovation emerging market has three main industries semiconductors, fin-tech, and electric cars. It also looks at the significance of technology in the development of business emerging markets, the role of technology in the emerging market and activities over the decades. Small firms in emerging areas face three major challenges which technology might help overcome. The challenges are trust, sustainability, and network. The role of technology replacing analog chip used for power supply, sensors, wideband signal make up the large semiconductors in the United States replaced with digital chip such as logical operations, data storage, computer information management all this have given birth to artificial intelligence, autonomous machines, self-driving cars, supply-chain management, cloud computing, and software-as-a-service (SaaS) applications are all made possible by digital chips. These are also used for e-commerce, mobile payment, fine-tech, 5G telecom, health-care advancement, remote learning, online entertainment, and cloud computing. Technical advancements that has sparked a revolution that would be especially advantageous for emerging market and small-cap enterprises are the causes of these benefits of how it has affected countries such as Europe, the United States, China, and India to mention a few.

Details

Fostering Sustainable Businesses in Emerging Economies
Type: Book
ISBN: 978-1-80455-640-5

Keywords

1 – 10 of over 30000