Search results

1 – 10 of over 22000
Article
Publication date: 27 July 2021

Mariam Jamaleh and Abha Shukla

Financial internationalization is of particular importance to emerging country firms. Its significance arises from the impact of institutional void and related agency problems…

Abstract

Purpose

Financial internationalization is of particular importance to emerging country firms. Its significance arises from the impact of institutional void and related agency problems (common to emerging markets) on the internationalization path of these firms. Building on concepts from international finance, agency theory and institutional theory, this paper aims to examine the main aspects of financial internationalization by emerging country multinationals, namely, cross-listing, foreign ownership and foreign independent directors.

Design/methodology/approach

This paper follows a multiple case study approach which is a good fit for the exploratory nature of this research. The interest is to examine the context-driven financial internationalization of each case firm and replicate the firm-level information to find a common strategy.

Findings

The findings suggest that financial internationalization by emerging country multinationals starts mainly as these firms plan to enter advanced country markets. It is a dynamic process that entails interaction between financial internationalization and real internationalization, as well as among different aspects of financial internationalization. Cross-listing comprises the first stage of the process. Then, foreign ownership, particularly foreign institutional investments, would increase gradually in response to advances in financial and factor markets. Recruiting foreign independent directors seems to be adopted last, possibly out of fear of losing control of strategic decisions.

Originality/value

This paper presents a unique perspective that delineates different stages of the process of financial internationalization by emerging country multinationals. This complements the efforts to explain the distinct path of internationalization followed by these firms and supplements scarce literature by including emerging multinationals from India where the matter has not yet attracted proper attention.

Details

Qualitative Research in Financial Markets, vol. 14 no. 1
Type: Research Article
ISSN: 1755-4179

Keywords

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.

8081

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

Article
Publication date: 17 June 2009

Tao (Tony) Gao and Talin E. Sarraf

This paper explores the major factors influencing multinational companies’ (MNCs) propensity to change the level of resource commitments during financial crises in emerging…

1054

Abstract

This paper explores the major factors influencing multinational companies’ (MNCs) propensity to change the level of resource commitments during financial crises in emerging markets. Favorable changes in the host government policies, market demand, firm strategy, and infrastructural conditions are hypothesized to influence the MNCs’ decision to increase resource commitments during a crisis. The hypotheses are tested with data collected in a survey of 82 MNCs during the recent Argentine financial crisis (late 2002). While all the above variables are considered by the respondents as generally important reasons for increasing resource commitments during a crisis, only favorable changes in government policies significantly influence MNCs’ decisions to change the level of resource commitments during the Argentine financial crisis. The research, managerial implications, and policy‐making implications are discussed.

Article
Publication date: 14 April 2014

Terry D. Alkire

Upon entering developed markets, emerging market multinational corporations (EMNCs) from China and India must compete with both host companies and other developed nation MNCs to…

1654

Abstract

Purpose

Upon entering developed markets, emerging market multinational corporations (EMNCs) from China and India must compete with both host companies and other developed nation MNCs to attract and recruit necessary local talent. The purpose of this paper is to examine to what extent EMNC firms will be perceived as less attractive employers than their developed nation counterparts due to a perceived liability of origin bias. Major demographic and psychographic factors that may affect this bias will also be identified.

Design/methodology/approach

Seven hypotheses were tested on a total of 626 German, French and American respondents. Participants were randomly presented identical job descriptions from four hypothetical MNCs (American, European, Indian and Chinese) and were asked to evaluate the perceived attractiveness of working for, as well as their intent to pursue employment with, the offering firm.

Findings

Using hierarchical linear regression testing, combined with analysis of variance testing, EMNCs were found to have significantly lower organizational attractiveness than equivalent European or American owned MNCs. Mixed results were found for the various hypotheses based on the moderator variables.

Research limitations/implications

Because the study included three distinct sub-groups, supplemental analyses controlling for possible variances between the sub-groups themselves are included. This multicultural study is one of the first to address the human perspective of EMNC outward foreign direct investment (OFDI) by identifying the existence of a potential liability of origin bias toward emerging market firms manifested by potential developed market job applicants. Furthermore, this study is one of the first to examine the influence of applicant age, professional status, gender and nationality with respect to the differences in the perceived level of organizational attractiveness between emerging market and developed nation firms.

Originality/value

This paper extends the literature in three important research areas. First, an extension to the literature on the highly relevant topic of OFDI by Chinese and Indian firms is made. Second, traditional research in the field of organizational attractiveness is further extended by combining it with the timely subject of Chinese and Indian OFDI into developed markets. Finally, this study extends international business literature by studying the influence of demographic and psychographic moderators on the perceived level of organizational attractiveness between emerging market and developed nation firms.

Details

International Journal of Emerging Markets, vol. 9 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 1 March 2013

Naveen K. Jain, Douglas R. Hausknecht and Debmalya Mukherjee

The paper aims to understand which location determinants are relevant in a subsidiary location decision under the interaction influence of an emerging‐market firm's (EMF) resource…

2842

Abstract

Purpose

The paper aims to understand which location determinants are relevant in a subsidiary location decision under the interaction influence of an emerging‐market firm's (EMF) resource and internationalization motives.

Design/methodology/approach

The paper prepares a typology of an EMF's resources which are different from those of a developed‐country firm. It proceeds to argue which internationalization motives are likely to work for an EMF endowed with a specific resource. Finally, the paper posits the impact of resource and internationalization motives on the relevance of some location determinants over others in an EMF's location decision matrix.

Findings

The conceptual framework proposes a relationship between EMF resources, internationalization motives and location determinants and prioritizes some location determinant(s) over others for various combinations of EMF resource and internationalization motives.

Research limitations/implications

The paper contributes to the literature by proposing a unique typology of EMF resources. The overall framework informs the scholars about the importance of idiosyncratic resources as the basis of differential location decisions.

Practical implications

This article presents a guiding framework for multinational managers to assess optimum location decisions on the basis of idiosyncratic firm resources and internationalization motives.

Originality/value

The paper fills a scholarly gap by proposing a framework that relates firm resources and internationalization motives to location determinants. In the process, the paper also proposes a resource typology for resources unique to EMFs.

Article
Publication date: 8 August 2016

Kia Hamid Yeganeh

This paper aims to examine the conditions, characteristics and strategies pertaining to the rise of emerging markets’ multinationals (EMNEs).

2006

Abstract

Purpose

This paper aims to examine the conditions, characteristics and strategies pertaining to the rise of emerging markets’ multinationals (EMNEs).

Design/methodology/approach

The paper relies on both academic and professional resources to offer a holistic understanding of EMNEs by reviewing, analyzing and classifying their underlying conditions, characteristics, internationalization motivations, strategies and competitive advantages.

Findings

The analysis indicates that EMNEs ascended as a result of major socio-economic transformations in the past two decades after the Cold War; follow an accelerated path of expansion; implement flexible and decentralized organizational configurations; enjoy strong political connections; do not internationalize according to the ownership-location-internalization paradigm, rather follow the linkage-leverage-learning pattern; benefit from multiple sources of competitive advantage and adopt five main types of international strategies; are becoming more sophisticated and represent serious threats to their counterparts from advanced economies.

Research limitations/implications

As emerging markets and their multinationals are highly heterogeneous, the findings and suggestions remain context-bound.

Practical implications

The paper synthesizes the EMNEs literature, bridges theory and practice and offers an integrative outline that can be useful for international business managers.

Originality/value

The paper takes an all-inclusive approach and provides insights into multiple societal and organizational facets of EMNEs.

Content available
Article
Publication date: 3 February 2022

Martina K. Linnenluecke

This paper aims to examine the state of research on environmental, social and governance (ESG) performance in the context of multinational business research. This paper discusses…

6427

Abstract

Purpose

This paper aims to examine the state of research on environmental, social and governance (ESG) performance in the context of multinational business research. This paper discusses research progress as well as various issues and complexities associated with using ESG ratings in cross-country studies and for assessing the performance of multinational enterprises (MNE) and emerging market multinationals (EMNEs).

Design/methodology/approach

The paper identifies emerging literature that focuses on tracking the development and uptake of ESG ratings in the international context. It discusses three emerging research streams: Research examining the ESG-financial performance relationship in emerging markets, research tracking the ESG performance of multinationals in the various countries and regions they are operating, and frameworks for assessing ESG-related risks on a country level.

Findings

While the emerging body of work adds an important dimension to the identification and awareness of ESG issues globally, numerous unresolved issues become evident. ESG frameworks have been built to assess corporate sustainability as it relates to firms in their “home” countries (typically with a focus on developed countries), with limited applicability and transferability to emerging markets. International firm activities are often not captured in detail and not comprehensively mapped across firm subsidiaries and a firm’s corporate supply chain where ESG issues are prone to happen, and ESG scores do not comprehensively integrate views and voices from various local stakeholders that are impacted by firm activities, particularly indigenous communities.

Research limitations/implications

Research on ESG ratings in the context of multinational business research is generally sparse and fragmented, thus creating opportunities for future research to expand on existing and emerging findings.

Practical implications

The paper creates awareness of issues to consider when using ESG ratings in cross-country studies and for assessing the ESG performance of MNEs and EMNEs: ESG scores can be subject to bias and are not weighted by materiality, which can be misleading for portfolio construction and performance measurement purposes. Managers need to be aware that ESG scores are often not capturing ESG issues occurring in supply chains and ESG issues affecting local communities.

Originality/value

This study enriches the understanding of ESG in the context of multinational business research practice.

Details

Multinational Business Review, vol. 30 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 27 July 2022

Frank Ohara and Robert Neil Mefford

This study aims to examine the corporate venturing strategy of successful emerging market multinational enterprises and discern commonalities and useful tactics for other firms…

Abstract

Purpose

This study aims to examine the corporate venturing strategy of successful emerging market multinational enterprises and discern commonalities and useful tactics for other firms attempting to follow in their footsteps. Understanding the corporate venturing strategies used by these successful firms may be instructive for other firms whether from emerging markets or developed countries.

Design/methodology/approach

We selected 11 multinationals in emerging markets for this study, from a variety of industries in China, India, Brazil, Mexico, Taiwan and South Korea. Success here is defined as rapid international expansion, increased revenue and greater innovation capacity. These firms have become globally competitive against established companies from the developed countries.

Findings

Some commonality in corporate venturing strategy has been found along with factors that have contributed to this use being effective. They may provide some worthwhile examples for other firms, both in developing and developed countries.

Originality/value

The contributions of this research are to add to the understanding of how some multinationals from developing countries have been able to rapidly build up their capabilities to become successful global competitors through their corporate venturing strategy.

Details

Journal of Business Strategy, vol. 44 no. 5
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 1 July 2021

Rafael Barreiros Porto, Paula Borges Gomes Akitaya and Denise Santos Oliveira

The purpose of this study is to investigate whether the internationalization characteristics of companies from an emerging market (internationalized company stage and presence of…

Abstract

Purpose

The purpose of this study is to investigate whether the internationalization characteristics of companies from an emerging market (internationalized company stage and presence of a sales subsidiary abroad) moderate the influence of country of brand origin positioning over the companies' financial performance.

Design/methodology/approach

The authors performed an ex-post-facto study of internationalized companies from Brazil spanning 16 years. Generalized estimating equations in panel data revealed the results with market share, return on assets (ROA) and Tobin's Q as dependent variables.

Findings

The result revealed that country of brand origin positioning is worth doing for internationalized companies from an emerging market, especially for multinationals with sales activity in the destination country. It positively affects all three financial metrics. For exporters, it is effective in increasing market share and returns on assets.

Practical implications

The research demonstrates the effectiveness of the image positioning of exporting and multinational companies that have internationalization initiatives and allocation of external sales activities.

Originality/value

In emerging markets, country of brand origin positioning is a branding strategy used by companies seeking to internationalize. This research shows that the contexts of the characteristics of internationalization strategies change the results, and therefore the need to be considered for testing the effectiveness of country-of-brand-origin positioning.

Details

International Journal of Emerging Markets, vol. 18 no. 8
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 17 June 2009

Rajesh K. Pillania and Marc Fetscherin

The purpose of this article is to investigate the state of research on multinationals and emerging markets. For this we look at existing literature from the disparate fields in…

Abstract

The purpose of this article is to investigate the state of research on multinationals and emerging markets. For this we look at existing literature from the disparate fields in which multinationals and emerging markets have been explored in the last forty years (1968‐2008). The paper finds that there is a plethora of material on multinationals and emerging markets and our bibliographical search resulted in 1,282 articles with 2,174 authors published in 514 journals. The three dominant disciplines and their underlying journals are management, business and economics accounting together about seventy percent of all publications. In the case of the management and business journals, the top ten percent account for fourty‐three percent of all publications and fifty percent of all citations. The most productive and influential journals are JIBS and HBR.

Details

Multinational Business Review, vol. 17 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

1 – 10 of over 22000