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The purpose of this paper is to examine the potential impact of the 2008 economic crisis on foreign direct investment (FDI), especially in the new member states of the European Union. Particular attention is paid to the activities of subsidiaries of multinational enterprises (MNE), which can follow different scenarios as a response to the crisis, including a reorganisation of their production systems, and a reduction or closure of activities.

The analysis is grounded on various streams of literature, including international business studies and research on transition. Evidence is derived from UNCTAD data, interviews and desk research. The method of descriptive analysis has been followed, combined with theoretical insights, conceptual discussions and case study evidence.

While the full magnitude and consequences of the crisis are yet to be extensively analysed, the authors' preliminary findings suggest that the response of MNE subsidiaries to the crisis hinges critically upon the type and the industry of such subsidiaries. Export platforms in automotive industries have been hardest hit. However, there are indications of the qualitative development of subsidiaries in other industries, despite the crisis, as well as growing attractiveness of new EU members FDI in services.

This paper is an explorative study on the impact of the crisis on subsidiaries. More academic research should be conducted to understand this phenomenon, especially when the full magnitude of the crisis can be assessed.

The authors' analysis points at important policy implications. The authors challenge the view that rising economic nationalism would be the right answer to the problems created by corporate restructurings. Further, the authors advocate selective host government support to subsidiaries, especially aimed at retaining R&D departments and skilled workforce.

So far, the global economic crisis has been analysed mostly in consultancy reports and in studies focusing on the macroeconomic impact. However, to the authors' knowledge, no academic study has examined the issue of MNE subsidiaries' responses to the crisis.

Management of subsidiaries of multinational companies and subsidiary evolution have emerged as important topics in the international business literature. This strand of literature on multinational subsidiaries has provided the necessary analytical models and research tools to study the phenomenon. Nonetheless, while many studies exist on the roles, strategies and evolutions of subsidiaries, and despite its high importance, this area of academic research is still lacking critical mass. Moreover, the extant studies have been conducted in the context of advanced economies, and yet it has been under-researched in the context of emerging economies, and particularly the economies of Eastern Europe, the so-called new EU member states. The study of the phenomenon of subsidiary evolution is the main aim of this paper.

The paper makes use of a proprietary dataset, collected in a self-administered web-based survey conducted among foreign-owned companies in Czech Republic, Hungary and Poland. To test the interrelations between different variables, the paper uses the structural equitation modelling, an advanced technique that allows to account for multiple interdependencies in a model. This approach enables the authors to escape the rigid division between dependent and independent variables, inherent to most conventional econometric models. In the paper, three analytical structural equation modelling (SEM) models were developed, tested and compared.

The empirical analyses show a strong positive relation between the main drivers of subsidiary evolution and the key outcomes of this process. It shows that the tenets of the theory originally developed to describe strategic behaviour of subsidiaries in advanced Western countries, broadly holds for emerging economies too. Moreover, the paper shows that subsidiaries operating in dynamic environments and led by pro-active subsidiary management achieve better results.

The study has its limitations. It is of quantitative nature, whereby the most common feature and characteristics of the research object are studied. Despite the convincing results, the phenomenon of subsidiary evolution can be further investigated in a number of case studies in a dynamic perspective, where specific details may come under the spotlight. On the other hand, such results cannot be easily generalised.

This study contributes to the extant body of academic literature on subsidiary evolution. The main contribution comes from investigation of this complex phenomenon in the context of emerging economies of new EU member states. Their transitionary dynamics and transformative change have had a profound impact on the functioning of economic agents and foreign subsidiaries in particular. The paper finds important particularities of this context.

The purpose of this study is to examine specific use of strategic alliances and acquisitions for Chinese firms to catch‐up technologically and to enhance their internationalization competence.

The paper offers a conceptual analysis of internationalization through either FDI or strategic alliances. This is a novel approach, as most of the extant literature tends to view internationalization solely through the prism of FDI. The empirical evidence presented in the paper is twofold. First, it analyses empirical data on strategic alliances and acquisitions retrieved from Thomson SDC database, a premium business directory. Second, it also approaches the topic qualitatively, by offering a case study of Chery Automobile Co. Ltd, a Chinese company that has relied heavily on strategic alliances in its internationalization strategy.

First, the study finds statistical evidence of a rising trend of formation of outward strategic alliances by Chinese firms. Second, the authors demonstrate the specific benefit of strategic alliances for Chinese firms to technically catch up and enhance internationalization competence. It is found that strategic alliances give Chinese firms opportunities to learn from front‐runners in terms of gaining technological capabilities, and there are advantages in tagging developing and advanced markets. The main findings suggest that the internationalization of Chinese firms is in a process in which they gradually integrate technology and marketing/logistics alliances. This approach allows for sufficient time to learn and absorb new skills and technology. Moreover, Chery's case indicates that a series of successful international strategic alliances could also generate tremendous bargaining power for Chinese firms when undertaking subsequent international activities.

This paper contributes to the small but growing body of literature on the internationalization of Chinese companies, their technological catching‐up activities. Unlike previous studies that mainly focus on state‐owned Chinese firms' internationalisation through outward FDI (such as M&A), the paper particularly contributes to the exploration of strategic alliances' effectiveness for private and latecomer firms' internationalization. Empirically, the data analysis and case study reflects the benefits for Chinese firms to enter into strategic alliances with European firms in order to enter into European market and to acquire technological capabilities.

The focus of this paper is the emergence of Russia's multinational companies. It aims to analyse their motives to internationalise as well as the approaches to internationalisation. While relevance of the theoretical perspectives is highlighted, the purpose of this paper is to contribute to the understanding of the present‐day phenomenon of emerging Russian multinationals.

The paper relies on a qualitative approach for the analysis of the nature of Russian multinationals. The phenomenon of the emerging Russian multinationals is analysed through the prism and using insights from a number of subjects, namely transition studies, politics, innovation studies and international business studies.

The paper traces the evolution of Russian companies; the idiosyncratic path of their formation serves as a background for understanding of their internationalisation strategies. A special attention is devoted to the R&D activities of Russian multinational companies, and access to foreign technology is found to be an important driver of internationalisation.

The paper highlights relevance of further research on Russian multinationals and outlines research avenues.

The paper is rich in its practical implications. Specifically, it elaborates on the European Union‐Russian bilateral relations and the role of Russian multinationals in the European economies. The issue of political involvement is raised, and the paper seeks to identify whether Russian companies serve as tools of foreign policy, or they operate as business agents.

Despite their increasingly important role in the global economy, Russian companies have been largely overshadowed by the emergence of Indian and Chinese multinationals and not sufficiently addressed, even neglected, in the literature. Therefore, the objective of this paper is to fill in some gaps in the literature regarding this research area.

The purpose of this paper is to present a framework for analyzing home and host country determinants and outcomes of emerging multinationals (EMNCs).

The paper applies a conceptual approach combined with analyses of statistics and secondary material.

The paper identifies changing trends and features of outward foreign direct investment (OFDI) from emerging economies and identifies in particular differences between outflows from Brazil, Russia, India, and China (BRIC).

The paper puts forward a framework for analyzing determinants and outcomes of structures and strategies of multinational companies from emerging economies and surveys contemporary trends and features of outward FDI from these economies.

The purpose of this paper is to re-assess both the nature and sources of the competitive advantages which multinationals expanding from home bases in emerging economies (EMNEs) may enjoy in the global market.

The paper analyses the results of 12 concurrent studies undertaken by a group of experts who were asked to examine how strategies for innovation, international value chain configuration and foreign mergers and acquisitions contributed to the competitive advantages of multinationals emerging from Brazil, Russia, India and China (the BRICs), respectively.

EMNEs do have competitive advantages that can underpin their expansion abroad, but these are mainly “non-traditional” advantages that have been built by finding innovative ways to leverage advantages of their home countries. EMNE’s internationalisation is as much about accessing new resources and knowledge to enable them to extend their competitive advantage, as it is a route to exploiting existing advantages over a larger set of markets. As a result, the global value chain structure of EMNEs tends to be fundamentally different from that chosen by incumbent multinationals.

The study is limited to EMNEs from the BRIC countries, but implications for EMNEs emerging from other countries are discussed.

We bring to bear extensive data and a systematic approach to understanding the new breed of multinationals emerging from the BRIC countries; their sources of competitive advantage; and how they are using innovation, foreign investment and overseas acquisitions to transform global competition.

To analyze internationalization patterns among large Russian multinational corporations (MNCs).

Case study analysis of systematic internationalization attempts within three industries: IT, banking, and steel. For case studies, secondary data was used along with industry expert interviews.

The first finding is that Russian firms actively pursuing internationalization strategies through mergers and acquisitions (M&As) and greenfield investments were not as successful as several optimistic assessments had earlier suggested. Few global corporate champions emerged among Russian MNCs, despite a decade of record high outward foreign direct investments (OFDI). Secondly, we observed the unique trend of splitting operations between international and Russian businesses, which proved more sustainable than operating as a single firm. For example, the IBS-Luxoft group achieved success through gradual legal and organizational separation of branches in order to serve rising demand in developed markets and from its Russian business within the same industry. This double-headed strategy divides a business into two parts that are controlled by the same owners, but operate independently: one firm operates within the home market, while another firm aims to expand globally. This seems to be a typical trend, confirming recent findings for Russian small and medium enterprise (SME) internationalization and reinforcing earlier literature on institutional constraints in the Russian economy.

We analyzed major cases from three actively internationalizing industries. For each industry, we extensively analyzed one main case in particular. Industries’ choice also affects specific internationalization strategies.

This study identifies two distinct approaches in the literature on Russian business internationalization and attempts to combine both. We will also highlight organizational dilemmas as well as patterns in Russian businesses’ successful and failed internationalization strategies over the last decade. We identified an original double-headed internationalization strategy consisting of the separation of the national and global businesses, rather than leveraging their synergy. We will also question the established optimistic assessment of Russian MNC internationalization.