Search results

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.

The paper takes help of existing literature and industry examples.

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.

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

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

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

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

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.

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.

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

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

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.

The purpose of this paper is to examine the process of integrating sustainability into the corporate strategy of an emerging market multinational enterprises (EMNE) to achieve and maintain corporate legitimacy over time. The research explores how deploying a corporate sustainability strategy enhances the company’s long-term competitive relevance by creating and maintaining corporate legitimacy and transferring practices based on sustainable development goals within the organization.

The study adopts a qualitative single-case design, focusing on a corporate energy services company (Interconexión Eléctrica S.A.) operating in volatile, uncertain and turbulent environments.

The findings indicate that integrating sustainability into the corporate strategy enables subsidiaries to effectively meet global requirements, considering internal and external pressures. This integration also fosters the development of unique capabilities and the internalization of standards, addressing liabilities in foreign markets, thus providing a competitive advantage and safeguarding corporate legitimacy among stakeholders.

This research contributes to the international business literature by providing insights into strategy development and implementation in EMNEs. Specifically, it demonstrates how a Latin American emerging multinational enterprise (multilatina) adopts new sustainability strategies to enhance its business competitiveness. The study also offers guidance for emerging market companies on developing sustainability strategies and transferring them to subsidiaries operating in complex institutional environments. Furthermore, the research provides a rationale for governments and civil society organizations on why firms are committed to sustainability, highlighting its positive impact on firm’s competitiveness and survival in international markets.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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

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

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

The purpose of this paper is to review and discuss the rise of emerging market multinationals (EMMs), with a special focus on its impact on marketing.

This paper is an invited opinion piece with implicit permission to “think aloud”.

Emerging market countries not only have millions of newly affluent consumers, but they are also the home of a new generation of multinational companies. The rise of EMMs challenges the extant thinking in strategy and marketing, and creates both threats and opportunities for western firms. With unique character and behaviour, EMMs are different from both developed countries multinationals and Japanese and Korean firms. It is imperative to study EMMs in order to win the new competition.

The topic is currently under‐researched, but has the potential to enrich and further develop the marketing subject.

Hopefully, the paper draws more attention to the rise of EMMs and encourages more research on the topic.