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Experiences of Emerging Economy Firms investigates the different elements of the experiences of emerging economy firms and sheds essential light on a large variety of aspects associated with their functioning in both home and host contexts.



1. The Upsurge of Firms from Emerging Economies

Firms from emerging economies have progressively been obtaining more prominent places in the global business arena. Their rising significance is due to the continuing upsurge of their domestic and international activities.

Marin Marinov

2. Liability of Emergingness of Emerging Market Multinationals in Developed Markets: A Conceptual Approach

In foreign markets, multinational enterprises (MNEs) need to manage in host countries applying the given rules of the game (North, 1990). While some foreign companies successfully manage a new institutional environment, others are not able to gain legitimacy and have difficulties in overcoming their liability of foreignness (LOF). LOF can arise from different sources, such as geographic distance between home and host countries, the foreign company’s unfamiliarity with the host-country specifics or unfavorable treatments of host-country nationals (Hymer, 1976; Zaheer, 1995). It weakens a company’s competitive advantage in foreign markets and consequently needs to be mitigated (Luo and Mezias, 2002; Luo, Shenkar and Nyaw, 2002; Suchman, 1995).

Katrin Held, Nicola Berg

3. Chinese Multinationals’ Entry, Exit and Re-Entry Patterns: Survey Evidence

Hsu, Lien and Chen (2013) have stated that firms from emerging economies are becoming increasingly active in international business. On the other hand, Deng (2012, 2013) and Zhong, Peng and Liu (2013) claim that knowledge on internationalization of emerging economy multinational enterprises (MNEs) is insufficient, and according to Li (2007, 2010), especially smaller multinationals from emerging economies are still under-researched. Moreover, Matthyssens and Pauwels (2000: 700) concluded that “Because of increased competition ... it can be expected that not every foreign entry is successful”. Li (2007) proposed that MNEs experience several boom-and-bust cycles in their existence. According to Vissak (2010), nonlinear internationalizers may be found more frequently than linear internationalizers, that is, firms that never exit or re-enter foreign markets. Thus, Javalgi, Deligonul, Dixit and Cavusgil (2011), Turner (2012), Vissak and Francioni (2013), Welch and Welch (2009), and Zhang and Larimo (2012) stressed the importance of studying exits and re-entries as to date they have not received enough research attention.

Tiia Vissak, Xiaotian Zhang

4. Institutional Environment and Multinational Enterprises’ Post-Entry Choice: An Institutional Perspective

Despite using the international joint venture (IJV) as an important mode applied by multinational enterprises (MNEs) when entering emerging economies (Makino, Chan, Isobe and Beamish, 2007; Park and Ungson, 1997; Brouthers, 2002, Yiu and Makino, 2002), more and more IJVs are being converted into wholly foreign-owned subsidiaries (Dhanaraj and Beamish, 2004; Inkpen and Beamish, 1997; Franko, 1971; Harrigan, 1988; Kogut, 1989). Even though conversions from IJV (partially owned by MNEs) to wholly foreign-owned subsidiaries are prevalent in emerging economy contexts at the present time, factors influencing MNEs’ ownership decisions about their IJVs’ conversion are still unclear in international business research.

Chang Liu, Zijie Li, Yi Li, Yuting Liang

5. Transferring “Yellow River Capitalism” to Africa and Its Implications

It is evident that China’s presence in Africa has changed the African economic, social and political landscape in recent years. Both positive and negative outcomes were reported. Nevertheless, to build successful and sustainable businesses in the broader African society, it is found that Chinese enterprises need to focus on host-country nationals’ skill training and development, and adhere to and uphold local employment laws and labor practices. Chinese enterprises need to adopt a new dimension of cross-cultural management that blends the Confucian values and Ubuntu ethos. The aim of such cross-verging managerial approach is to build an ideal type of international organization that would help balance local African employees’ work and life while achieving sustainable international businesses.

Connie Zheng

6. Indian Multinationals in Developed Countries: A Case Study on Cultural Strategies

Multinational firms from emerging economies have been steadily climbing up the success ladder and have emerged as challenging and strong global contenders. They have proved to be facilitators of globalization and several of them have hailed from emerging regions, including India and China, which have become important parts of today’s globalized economy. The rapid rise of emerging economies and their multinational firms has opened up many opportunities, as well as raised many challenges (Singh, 2012; Marinov and Marinova, 2014). It has been pointed out time and again that this subject lacks systematic research and is far from mature (Goldstein, 2005; Aulakh, 2007). Moreover, the extant literature is largely focused on the perspectives of Western multinationals (Almond, Edwards, Colling, Ferner, Gunnigle, Mueller-Camen, Quintanilla and Waechter, 2005; Gamble, 2003; Edward and Ferner, 2004; Farley, Hoenig and Yang, 2004; Chen, Lawler and Bae, 2005). There is a gap in research on multinationals from emerging economies (MEEs), since extant research has rarely examined management practices of MEEs in their subsidiaries in developed countries (Chang, Mellahi and Wilkinson, 2009). Since this is a more recent phenomena, it has attracted insufficient research (Sim and Pandian, 2003; Sim, 2006; Aulakh, 2007), and even less in the case of Indian multinational firms. The different perspectives of these multinationals are important as they have adopted unique management styles (Bruton and Lau, 2008).

Roli Nigam, Zhan Su

7. Reviewing Research of Internationalization of Brazilian Multinational Enterprises: An Analysis of the Period 2001–2012

The rise of emerging multinationals (EMNs) was a major phenomenon during the last decade (BCG, 2006; Wright, Filatotchev, Hoskisson and Peng, 2005). This rise partly explains the increase in foreign direct investment (FDI) outflows from emerging countries, which totaled US$457 billion in 2011, reaching the second-highest level ever recorded (UNCTAD, 2012). A series of recent studies have sought to explain the sudden growth of EMNs (Ramamurti and Sigh, 2009; Brennan, 2011), and for some authors, such as political scientists Nölke and Taylor (2010) and Nölke (2011), research in this field became a type of “new industry”.

Mário Henrique Ogasavara, Gilmar Masiero

8. Multinational Corporations and Spillover Effects: A Study of the Effects of Foreign MNCs on the Innovative Capacity of Small- and Medium-Sized Enterprises in Minas Gerais, Brazil

Attracting foreign direct investment (FDI) has become an essential part of the development strategies of countries worldwide. Emerging economies offer various incentives to attract foreign investors, such as tax exemptions, tariff reductions or exemptions and subsidies for infrastructure (Liu, 2008).

Cristina Lelis Leal Calegario, Nádia Campos Pereira Bruhm, Juciara Nunes de Alcântara

9. Learning from the Globalization of an Emerging Economy Firm: Are Current Internationalization Theories Relevant?

Classic theories of firm globalization, including the Uppsala Internationalization Model (Johanson and Vahlne, 1977) and the Eclectic Paradigm (Dunning, 1973), were developed using data from firms originating in relatively prosperous and advanced Western economies, expanding into foreign markets. Despite the current growth of emerging economy firms in China, India and Brazil and attempts to expand their businesses across borders, these internationalization models still remain the two most widely subscribed models of firm globalization (Steen and Liesch, 2007).

Brian Li, Maya Kumar, Mary Ann Von Glinow

10. Institutions and Diversification of International Markets: A Study of Clothing Manufacturers from Tanzania and Kenya

The influence of serving different geographical markets and the respective benefits of a diversification strategy are under-researched, particularly with regard to the internationalization of firms (Zeng, Xie, Tam and Wan, 2008; Cieślik, Kaciak and Welsh, 2012). Market diversification through exporting is a cheap way of internationalization that is more commonly used by smaller firms (Kwon and Kopa, 1993; Ang, 2007), such as those found in Africa. However, variation in national institutional environments enables and constrains different strategic choices such as geographic diversification (Peng and Delios, 2006). For example, the economic policy orientation of the state, including its international trade and investment policies, its impact on shaping the development of market institutions and its interaction with entrepreneurs influence the evolution of firms in emerging economies and their international operations (Yaprak and Karademir, 2010).

Deusdedit Rwehumbiza, Md. Noor Un Nabi, Utz Dornberger


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