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Article
Publication date: 22 October 2021

Liang Wang, Zaiyang Xie, Hongjuan Zhang, Xiaohua Yang and Justin Tan

The literature on how emerging market multinational enterprises (EMNEs) overcome the liability of emergingness/origin has sidestepped a prerequisite for any efforts to overcome…

Abstract

Purpose

The literature on how emerging market multinational enterprises (EMNEs) overcome the liability of emergingness/origin has sidestepped a prerequisite for any efforts to overcome liability, namely, corporate compliance. The authors argue that EMNEs build corporate compliance capability as a knowledge-based firm-specific advantage (FSA) to adapt to institutional norms in advanced economies. In this study, the authors empirically examine the intricate relationships between corporate compliance capability and performance in the US subsidiaries of Chinese firms.

Design/methodology/approach

In this study, the authors use survey data to empirically examine the intricate relationships between corporate compliance capability and performance in the US subsidiaries of Chinese firms.

Findings

The findings reveal a positive relationship between corporate compliance capability and subsidiary performance, as mediated by local financing.

Originality/value

The study suggests that corporate compliance capability helps a subsidiary gain legitimacy, which leads to local resource acquisition and utilization. Corporate compliance capability thus serves as a source of a knowledge-based FSA for EMNEs in developed economies.

Details

International Journal of Emerging Markets, vol. 18 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 25 October 2014

Katrin Held and Nicola Berg

In developed markets, emerging market multinational enterprises (EMNEs) seem to be more discriminated by host country nationals than foreign developed market multinational…

Abstract

Purpose

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.

Design/methodology/approach

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.

Originality/value

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.

Details

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

Keywords

Case study
Publication date: 16 August 2019

Vivian Peuker Steinhauser and Angela da Rocha

The case can be used to examine the resources and capabilities of small firms considering entering international markets. It can also be a vehicle for examining typical barriers…

Abstract

Theoretical basis

The case can be used to examine the resources and capabilities of small firms considering entering international markets. It can also be a vehicle for examining typical barriers that such companies may face and must overcome when expanding abroad: liabilities of smallness, liabilities of foreignness, liabilities of emergingness and liabilities of outsidership.

Research methodology

The case is based on several interviews with both entrepreneurs over a one-year period and on secondary information from reports and documents.

Case overview/synopsis

This teaching case presents the trajectory of a Brazilian services company operating in the corporate events planning industry. The case explores the potential for the company’s international expansion, and the vision and engagement of the entrepreneurs, despite several barriers the company needs to overcome.

Complexity academic level

The case can be used in Entrepreneurship and International Marketing courses, both at graduate and undergraduate levels. It can also be used in training seminars for executives of tourism and events planning companies, and for employees of export promotion agencies.

Details

The CASE Journal, vol. 15 no. 4
Type: Case Study
ISSN: 1544-9106

Keywords

Article
Publication date: 18 December 2018

Ying Zhang, Etieno Enang and Harry Sminia

Mergers and acquisitions being done by emerging market multinational corporations (EMNCs) increasingly attract scholarly attention. However, conclusions concerning the nature and…

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Abstract

Purpose

Mergers and acquisitions being done by emerging market multinational corporations (EMNCs) increasingly attract scholarly attention. However, conclusions concerning the nature and the theoretical underpinnings of EMNCs’ post-acquisition integration vary significantly, calling for an assessment of the state of affairs in this field. This paper aims to critically review the extant studies on EMNCs’ post-acquisition integration and to make a comparison with advanced economy multinational corporations’ (AMNCs’) post-acquisition integration, in order to formulate an agenda for future research.

Design/methodology/approach

A sample of papers from 21 leading journals in the fields of international business, management, human resource management and strategy published between 1991 and March 2018 are included in the literature review. Qualitative content analysis was conducted.

Findings

The topics are clustered into the four themes of strategies and processes, influencing factors, acquisition performance and antecedents of post-acquisition integration of EMNCs. The literature on EMNCs and AMNCs converges with regard to the broad methodological and theoretical approaches that have been adopted. Yet, EMNCs and AMNCs diverge on the detailed strategies and behavioral patterns of post-acquisition integration, mostly as a consequence of country of origin factors.

Originality/value

The paper identifies a number of deficiencies within existing research and suggests how they can be addressed in future research. By doing so, the paper deepens the argumentation of the third camp in the “Goldilocks debate” (Cuervo-Cazurra, 2012) arguing that the phenomenon of post-acquisition of EMNCs is “just right” for theory extension and development.

Details

Multinational Business Review, vol. 27 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 13 June 2019

Fei Li, Yan Chen and Yipeng Liu

This paper aims to examine how integration modes impact the acquirer knowledge diffusion capacity of overseas mergers and acquisitions (M&As) effected by emerging market firms and…

1072

Abstract

Purpose

This paper aims to examine how integration modes impact the acquirer knowledge diffusion capacity of overseas mergers and acquisitions (M&As) effected by emerging market firms and the role played by the global innovation network position of the acquiring firms in affecting this relationship.

Design/methodology/approach

Through the use of structural equation modelling and bootstrap testing, the hypotheses are tested by drawing upon a sample of 102 overseas M&As effected by listed Chinese manufacturing companies.

Findings

The results show that acquirers from emerging countries are unable to increase the knowledge diffusion capacity unless they choose the right post-merger integration mode. This paper also finds that the relationship between integration mode and knowledge diffusion is channelled through the centrality and structural holes of acquirers in the global innovation networks. When considering the combinations of different resource similarities and complementarities of the acquired firms, differences emerge in the integration model and network embedded path of acquirers in emerging countries.

Practical implications

Emerging market multinational enterprises should consider post-merger integration as a crucial facilitator to the crafting of global innovation network positions that promote knowledge diffusion. The choices of integration mode and brand management autonomy should be matched with the resource similarities and complementarities that exist between the acquirer and target firms.

Originality/value

Based on the resource orchestration theory and by focussing on network centrality and structural hole as the crucial links, this study provides a nuanced understanding of the relationship between post-merger integration and knowledge diffusion and sheds light on latecomer firms from emerging countries.

Details

Journal of Knowledge Management, vol. 23 no. 7
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 6 July 2023

Andreas M. Hilger, Zlatko Nedelko and Thomas Steger

Long regarded as a far-fetched notion, companies from post-socialist economies (PSEs) increasingly compete with companies from advanced economies in their domestic markets and…

Abstract

Purpose

Long regarded as a far-fetched notion, companies from post-socialist economies (PSEs) increasingly compete with companies from advanced economies in their domestic markets and abroad. This study identifies PSE companies' motives and determinants of outward foreign direct investment (OFDI) in advanced economies.

Design/methodology/approach

This study analyses Slovenian business activities in Germany by juxtaposing eight Slovenian investors and three exporters using a multiple case study approach. The authors use content analysis to examine rich data from semi-structured interviews, databases and internal and external documents to provide comprehensive and in-depth insights into PSE investments in advanced economies.

Findings

The authors identify market-seeking motives and competitive advantages which differ from those of other emerging economy companies and offer theoretical suggestions. In contrast to findings from other emerging economies, the authors identify firm- and country-specific advantages, such as high technology, high service quality, a highly educated labour force, and European Union membership, which Slovene companies have employed to enter the advanced German market.

Originality/value

This study represents the first application of springboard theory to explain PSE company investment in advanced economies. The authors offer contextualised explanations of PSE investments in advanced host economies, which have been lacking thus far. The authors also contribute to the scarcity of studies on the effects of supranational institutions on OFDI from emerging economies.

Details

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

Keywords

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…

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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: 14 July 2022

Mariela Natacha Golik and Maria Rita Blanco

Talent identification is a critical process of any Global Talent Management system, and little is known about it in Latin American multinationals (multilatinas). This study aims…

Abstract

Purpose

Talent identification is a critical process of any Global Talent Management system, and little is known about it in Latin American multinationals (multilatinas). This study aims to understand, through the perceptions of Corporate Global Talent Managers, the talent identification strategy in place, the factors involved and the sources of the tools for its implementation.

Design/methodology/approach

The sample is made up of 17 multilatinas (Argentina, Brazil, Mexico, Chile and Colombia). Semi- structured interviews were conducted with Corporate Global Talent Managers.

Findings

Results reveal that the standardisation strategy constitutes the main trend. This choice is explained by numerous factors such as the new corporate structures, the entry mode via mergers and acquisitions, the national/regional culture, geographical closeness and shared cultural affinity, organizational culture, host country management practices and level of integration between headquarters and subsidiaries. Most of the multilatinas do not rely on “best practices”; they prefer home-made tools instead. Several factors were identified. Conclusions and further research are presented.

Originality/value

This paper attempts to fill a perceived gap in the literature investigating, empirically, the talent identification strategy in multilatinas.

Propósito

La identificación del talento es un proceso crítico de todo sistema de Gestión del Talento Global, y poco se conoce sobre el mismo en las multinacionales de origen latinoamericano. Este estudio cualitativo tiene por objetivo comprender, a través de las percepciones de los directores globales de talento corporativo, la estrategia de identificación de talento adoptada, los factores involucrados en esas elecciones estratégicas y el origen de las herramientas utilizadas en su implementación.

Diseño/metodología/enfoque

La muestra de este estudio está compuesta por 17 multilatinas de Argentina, Brasil, México, Chile y Colombia. Entrevistas cualitativas fueron realizadas con los responsables globales de gestión del talento.

Resultados

Los resultados muestran que la estrategia de estandarización en la identificación del talento constituye la tendencia principal. Esta elección estratégica puede explicarse por diversos factores: nuevas estructuras corporativas, modo de ingreso a través de fusiones y adquisiciones, cultura nacional/regional, cercanía geográfica y afinidad cultural, cultura organizacional, prácticas de gestión de los países de destino y grado de integración entre Casa Matriz y subsidiarias. La mayoría de las multilatinas privilegian las herramientas de diseño propio, en lugar de aquellas “mejores prácticas”. Numerosos factores han sido identificados. Se presentan conclusiones y futuras líneas de investigación.

Originalidad

Este es el primer estudio que examina la estrategia de identificación de talento en las multinacionales latinoamericanas y los factores involucrados, cerrando una brecha en la literatura.

Objetivo

A identificação de talentos é um processo crítico de todo sistema de gestao global de talentos, e pouco se sabe sobre isso em multinacionais de origem latinoamericana. Este estudo qualitativo tenta compreender, através das percepções dos diretores globais de talento corporativo, a estratégia de identificação de talentos adotada, os fatores envolvidos nessas escolhas estratégicas e a origem das ferramentas utilizadas na sua implementação.

Abordagem metodológica

A amostragem do estudo foi baseada em 17 multilatinas da Argentina, Brasil, México, Chile e Colômbia. Entrevistas qualitativas foram realizadas com gerentes globais de gestão de talentos.

Resultados

Os resultados mostram que a estratégia de padronização na identificação de talentos constitui a principal tendência. Essa escolha estratégica pode ser explicada por vários fatores: novas estruturas societárias, modo de entrada por meio de fusões e aquisições, cultura nacional/regional, proximidade geográfica e afinidade cultural, cultura organizacional, práticas de gestão dos países de destino e grau de integração entre Matriz e subsidiárias. A maioria das multilatinas privilegia as ferramentas de seu próprio design, em vez das “melhores práticas”. Diversos fatores foram identificados. São apresentadas as conclusões e futuras linhas de pesquisa.

Originalidade

Este é o primeiro estudo que examina a estratégia de identificação de talentos em multinacionais latinoamericanas e os fatores envolvidos, contribuindo a preencher uma lacuna na literatura

Article
Publication date: 17 October 2019

Clarice Secches Kogut, Renato Dourado Cotta de Mello and Angela da Rocha

Starting from the knowledge-based view as a theoretical perspective, this study aims to examine how an emerging market multinational enterprise (EMMNE) engages in reverse…

Abstract

Purpose

Starting from the knowledge-based view as a theoretical perspective, this study aims to examine how an emerging market multinational enterprise (EMMNE) engages in reverse knowledge transfer (RKT) processes and how such processes are managed by headquarters. Therefore, this paper captures the perspective of top management concerning RKT and the processes used to create, transfer and integrate knowledge.

Design/methodology/approach

The study uses a longitudinal design based on the case method of investigation. The case selected for the study was a Brazilian company theoretically sampled for being a domestically, regionally and globally important, information-rich company that operates in an industry in which technology plays a crucial role. The company was also selected for having had asset-seeking motives in at least some of its foreign market entries and for having successfully absorbed foreign-acquired capabilities.

Findings

The study provides counterfactual evidence to the springboard perspective, considering timing and speed of the internationalization and catch-up processes and the size of acquisitions. The study also highlights differences to other emerging market multinational enterprises, concerning the internationalization trajectory and catch-up moves, and to traditional MNEs, regarding RKT challenges and practices.

Research limitations/implications

The main limitations of the study relate to the case study method, which does not allow for statistical generalization, although it does support analytical generalization.

Originality/value

The study contributes to the literature by shedding light on the process by which a Latin American multinational firm developed technological capabilities to compete globally, focusing on the symbiotic, self-nurturing relationship between internationalization processes and technology acquisition and integration processes. Moreover, the work provides novel theoretical insights regarding timing, location, size and execution of the RKT activities. Finally, the paper contributes to the understanding of the relational aspects of the RKT process by focusing on building human relationships as the major force behind knowledge integration and examining the resistance of the acquired companies from developed markets to adopt the parent company’s best practices, or to contribute to its integrated knowledge, when the parent company is an EMMNE.

Details

Multinational Business Review, vol. 28 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 24 October 2023

Ana Maria Gomez-Trujillo, Maria Alejandra Gonzalez-Perez and Jose Jaime Baena-Rojas

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

European Business Review, vol. 36 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

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