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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.

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

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Book part
Publication date: 24 June 2015

Alvaro Cuervo-Cazurra

I study the relationship between pro-market reforms and the expansion of emerging market multinational companies (EMNCs). Extending institutional economics, I propose a…

Abstract

I study the relationship between pro-market reforms and the expansion of emerging market multinational companies (EMNCs). Extending institutional economics, I propose a co-evolutionary process, whereby pro-market reforms in emerging markets induce the transformation of domestic firms into EMNCs, and the global expansion of EMNCs in turn facilitates the deepening of pro-market reforms in the home country. Specifically, I first explain how pro-market reforms lead to the emergence of EMNCs via international competitiveness, upgrading needs, and escape; I then explain how the global expansion of EMNCs leads to a deepening of pro-market reforms at home via learning, spillovers, and lobbying. I complement these explanations with a discussion of contingencies at the firm (private vs. state, domestic vs. foreign firms), industry (global vs. local industries), and country (developing vs. transition countries) levels.

Details

Emerging Economies and Multinational Enterprises
Type: Book
ISBN: 978-1-78441-740-6

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Book part
Publication date: 30 July 2018

Abstract

Details

Marketing Management in Turkey
Type: Book
ISBN: 978-1-78714-558-0

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Article
Publication date: 27 June 2018

Ludivine Chalencon and Ulrike Mayrhofer

The purpose of this paper is to compare the value creation of cross-border mergers and acquisitions (M&As) in mature and emerging markets.

Abstract

Purpose

The purpose of this paper is to compare the value creation of cross-border mergers and acquisitions (M&As) in mature and emerging markets.

Design/methodology/approach

The empirical study is based on a sample of 285 cross-border M&As announced between 2010 and 2012 and completed by companies of the French SBF 120 index in 54 countries.

Findings

The statistical analysis shows how financial markets react before and after the announcement of M&As. The obtained findings highlight significant differences: the reaction of financial markets before the announcement is moderately positive for M&As in mature economies, but negative for those in emerging economies; their reaction after the announcement is clearly positive for M&As in mature markets and moderately positive for those in emerging markets.

Research limitations/implications

Future studies on M&A value creation should differentiate mature and emerging economies and adopt a more in-depth classification of target countries.

Practical implications

This research emphasizes the necessity to consider country-specific factors for M&A value creation.

Originality/value

The empirical study is based on a sample of French acquirers, who account for 3 percent of the volume and value of M&As in the world and whose operations are rarely studied in the literature. The authors compare the reaction of financial markets before and after the announcement of M&As conducted in mature and emerging economies.

Details

Journal of Organizational Change Management, vol. 31 no. 4
Type: Research Article
ISSN: 0953-4814

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Article
Publication date: 13 March 2017

Witold Nowiński

The purpose of this paper is to determine the performance implications of cross-border acquisitions by Polish multinationals. Additionally, the study considers specific…

Abstract

Purpose

The purpose of this paper is to determine the performance implications of cross-border acquisitions by Polish multinationals. Additionally, the study considers specific factors affecting acquisition performance, such as acquirer’s prior cross-border acquisition experience and the type of market (advanced versus emerging) in which the target is located.

Design/methodology/approach

This study is based on a sample of 104 cross-border acquisition events in which a Polish public company, quoted on the Warsaw Stock Exchange acted as an acquiring party. The event study method was applied to determine the impact of acquisition announcements on the share price of the acquiring companies for 3-, 4- and 5-day event windows. The proposed hypotheses were additionally verified through hierarchical regression.

Findings

The research shows that a typical cross-border acquisition carried out by a Polish multinational ends in creating value. While the impact of prior cross-border acquisition experience is only significant for the shortest event window, the choice of targets from emerging markets significantly improves acquisition outcomes for all of the event windows examined.

Originality/value

The study is the first project on such a scale to focus on cross-border acquisitions by multinationals from Central and Eastern Europe to have used event study methodology. It has shown that acquirers from mid-range emerging markets, such as Poland, tend to benefit more from leveraging their ability to function in underdeveloped and dynamic institutional settings if they acquire companies operating in other emerging markets rather than those based in more developed economies.

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Book part
Publication date: 24 October 2015

Debora Atala Pires, Thelma Valéria Rocha, Felipe Mendes Borini and Dennys Eduardo Rossetto

The objective is to determine if there are groups of subsidiaries that are different in regard to the implementation of strategies, structures, and processes and the…

Abstract

Purpose

The objective is to determine if there are groups of subsidiaries that are different in regard to the implementation of strategies, structures, and processes and the transfer of marketing knowledge in emerging markets.

Methodology/approach

A survey with 101 largest foreign subsidiaries located in Brazil was conducted. The data collection process was conducted online and by telephone.

Findings

Three subsidiary groups based on the configuration of their international marketing activities were characterized: Cluster 1, called “Subsidiary with Knowledge Marketing Activities”; Cluster 2, called “Subsidiaries with Global Marketing Activities”; and Cluster 3, called “Subsidiaries with Local Marketing Activities.” Compared to the two other groups, Cluster 1 is the group with the minor number of companies, but it has a better strategic performance than other clusters.

Research limitations/implications

This study was developed in only one emerging country, Brazil, and with 101 subsidiaries from MNCs. This could be extended to other countries, such as China, Russia, India, and Turkey and with more subsidiaries. Related to the construct measurements, one limitation is the qualitative measure of performance.

Practical implications

Subsidiaries that work with global marketing should pool their efforts to create and transfer marketing knowledge to improve their performance. Subsidiaries with local marketing activities may even perform more satisfactorily in the short term, but they should concern to contribute to the overall competitive edge of the corporation.

Originality/value

The discussion about marketing in emerging markets and the way in which the transfer of marketing knowledge can be reflected in the performance.

Details

International Marketing in the Fast Changing World
Type: Book
ISBN: 978-1-78560-233-7

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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…

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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 1 December 2005

Thomas A. Olsen, Monica Pinto and Shalina Virji

We argue that in order to achieve sustainable profitable growth in emerging markets, MNCs need to rely less on preexisting corporate management models and more on a

Abstract

Purpose

We argue that in order to achieve sustainable profitable growth in emerging markets, MNCs need to rely less on preexisting corporate management models and more on a flexible, principle‐based set of practices that can change from market to market and even from year to year.

Design/methodology/approach

The article focuses on six key practices: how long‐term direction is established and reviewed; how the emerging market business fits within the organizational structure; how roles and decision rights are defined between headquarters and the local leadership; how local decisions are prioritized and how fast they are made; how resource allocation can be made more flexible; and how performance is monitored and managed.

Findings

To fully capture the emerging market growth opportunity, MNCs must strike the right balance in each of these six areas, surmounting the inevitable tension between global standards and on‐the‐ground realities.

Originality/value

Multinational corporations are scouring the globe for growth, and increasingly they are finding it in emerging markets. But the potential pitfalls of this approach are substantial – and often underestimated. This paper outlines an approach that will help local and corporate leaders steer the path to long‐term success more nimbly than standard models.

Details

Journal of Business Strategy, vol. 26 no. 6
Type: Research Article
ISSN: 0275-6668

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Article
Publication date: 11 April 2008

Daniel W. Baack and David J. Boggs

Strategic contingency theory maintains that a successful strategy should fit the features of the environment in which it is implemented, suggesting that different…

Abstract

Purpose

Strategic contingency theory maintains that a successful strategy should fit the features of the environment in which it is implemented, suggesting that different strategies are required in different world markets. In contrast, Porter posited three generic strategies, and asserted that to be effective firms should consistently use only one of the three. This paper aims to address this apparent disagreement by discussing the transfer, by developed‐country multinational companies (MNCs), of a cost‐leadership strategy to emerging markets.

Design/methodology/approach

Presenting theoretical arguments, based on deductive reasoning and examples reported in business publications, the authors focus on why firms from developed countries may find a cost‐leadership strategy ineffective in emerging markets. This focus on both emerging markets as a group and on the ease of the transfer of the cost‐leadership strategy fills a gap in the international management literature.

Findings

It is argued that implementation of a cost‐leadership strategy by developed‐country MNCs is rarely effective in emerging markets, and that MNCs may benefit from using different strategies in different markets.

Originality/value

The paper provides at least a partial explanation as to why developed‐country firms may struggle when they apply a generic competitive strategy across countries. The contribution of this paper is two‐fold. First, it explores the question of emerging market strategies by focusing on developed‐country MNCs that use a cost‐leadership strategy in these markets. Second, the paper contributes an important critique of the claims made by some business strategy theorists that MNCs need to use a single generic strategy globally in order to achieve high performance.

Details

International Journal of Emerging Markets, vol. 3 no. 2
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 11 September 2018

Collins Osei, Joseph Amankwah-Amoah, Zaheer Khan, Maktoba Omar and Mavis Gutu

In almost every large business, there is a growing recognition of the importance of organisational agility in improving their marketing responsiveness and business…

Abstract

Purpose

In almost every large business, there is a growing recognition of the importance of organisational agility in improving their marketing responsiveness and business survival. However, limited insights have been offered by scholars on multinational enterprises and their marketing agility in emerging markets context. The purpose of this paper is to examine the various manifestations of agility and the various strategies adopted to sustain agility by an emerging economy multinational enterprise (EMNE) which started in the late 1990s as a small firm operating within the fresh fruit and juice industry in Africa.

Design/methodology/approach

The authors utilised empirical qualitative data from an emerging African economy to develop a three-stage model of how agility manifests overtime.

Findings

The authors find that successful development and deployment of international marketing agility strategy adopted by an EMNE from emerging markets hinge on building relationships, being socially responsible and being innovative in standardisation and adaptation in response to, and in anticipation of, the rapidly changing business environment.

Research limitations/implications

This research is based on data from one organisation. Future research can consider using multiple cases from different countries to further understand marketing agility in emerging markets and when such firms internalise into developed markets.

Originality/value

This paper extends research on standardisation/adaptation debate and research on agility, to address the gap on international marketing agility. Hitherto, there was no significant research on marketing agility in emerging markets which focused on highly perishable products such as fruits. This research provides unique insight into how marketing agility could be developed, deployed and sustained in emerging African markets.

Details

International Marketing Review, vol. 36 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

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