Abstract
We review the classic theory of the MNE and past attempts to use it to understand the internationalization of firms from emerging markets. We offer two criteria to determine whether EMNEs modify classic theory or not: (1) establishing appropriate theoretical reference points, and (2) distinguishing between theoretical constructs and empirical variables. We suggest that the literature can benefit from moving beyond comparing EMNEs to DMNEs and focusing instead on more fruitful issues. Specifically, emerging markets offer the opportunity to observe the origin of the capabilities of MNEs in general and the development of the institutional ecosystem that supports internationalization.
Résumé
Revisamos la teoría clásica de la empresa multinacional (EMN) et nous tentons de l’utiliser pour comprendre l’internationalisation des entreprises issues des marchés émergents. Nous proposons deux critères pour déterminer si les entreprises multinationales des marchés émergents (EMNE) modifient la théorie classique ou non : (1) la définition des points de référence théoriques appropriés et (2) la distinction entre les construits théoriques et les variables empiriques. Nous suggérons que la littérature peut se développer au-delà des comparaisons entre les EMNE et les entreprises multinationales des marchés développés (EMND) et en se concentrant sur des questions plus fructueuses. Plus précisément, les marchés émergents offrent la possibilité d’observer l’origine des capacités des EMN en général et le développement de l’écosystème institutionnel qui soutient l’internationalisation.
Resumen
Revisamos la teoría clásica la la empresa multinacional (EMN) y tratamos de usarla para entender la internacionalización de las empresas de mercados emergentes. Ofrecemos dos criterios para determinar si las empresas multinacionales de mercados emergentes modifican o no la teoría clásica: (1) estableciendo puntos de referencia teóricamente apropiados y (2) distinguiendo entre los constructos teóricos y las variables empíricas. Sugerimos que la literatura se puede beneficiarse al ir más allá de comparar las empresas multinacionales de países emergentes con las de países desarrollados y en cambio enfocarse en cuestiones más fructíferos. Especialmente, los mercados emergentes ofrecen la oportunidad de observar el origen de las capacidades de las empresas multinacionales en general y desarrollo del ecosistema institucional que respalda la internacionalización.
Resumo
Revisamos a teoria clássica de MNE e tentativas de usá-la para entender a internacionalização de empresas de mercados emergentes. Oferecemos dois critérios para determinar se EMNEs modificam a teoria clássica ou não: (1) estabelecimento de pontos de referência teóricos adequados e (2) distinção entre construtos teóricos e variáveis empíricas. Sugerimos que a literatura possa se beneficiar de ir além de comparar EMNEs com DMNEs e que se concentre em questões mais frutíferas. Especificamente, mercados emergentes oferecem a oportunidade para observar a origem das capacidades de MNEs em geral e o desenvolvimento do ecossistema institucional que suporta a internacionalização.
概要
我们回顾了MNE的经典理论及用它来认识新兴市场公司国际化所做的尝试。我们提供了两个准则, 以确定EMNEs是否修正了经典理论:(1)建立适当的理论参考点; (2)区分理论构体和实证变量。我们建议超越EMNEs与DMNEs的比较, 而把重点放在更有成效的议题上, 这样文献能受益。具体而言, 新兴市场为观察MNEs整体能力的起源以及支持国际化的制度生态系统的发展提供了机会。
Similar content being viewed by others
References
Ang, S. H., Benischke, M. H., & Doh, J. P. 2015. The interactions of institutions on foreign market entry mode. Strategic Management Journal, 36(10): 1536–1553.
Awate, S., Larsen, M. M., & Mudambi, R. 2015. Accessing vs sourcing knowledge: A comparative study of R&D internationalization between emerging and advanced economy firms. Journal of International Business Studies, 46(1): 63–86.
Aybar, B., & Ficici, A. 2009. Cross-border acquisitions and firm value: An analysis of emerging-market multinationals. Journal of International Business Studies, 40(8): 1317–1338.
Barley, S. R., & Tolbert, P. S. 1997. Institutionalization and structuration: Studying the links between action and institution. Organization Studies, 18(1): 93–117.
Barney, J. B., & Peteraf, M. A. 2014. Comment on Hashai and Buckley: Transactions costs, capabilities, and corporate advantage considerations in theories of the multinational enterprise. Global Strategy Journal, 4(1): 70–73.
Buckley, P. J., & Casson, M. 1976. The future of the multinational enterprise. New York: Macmillan.
Buckley, P. J., Clegg, L. J., Cross, A. R., Liu, X., Voss, H., & Zheng, P. 2007. The determinants of Chinese outward foreign direct investment. Journal of international business studies, 38(4): 499–518.
Caves, R. E. 1996. Multinational enterprise and economic analysis. Cambridge: Cambridge University Press.
Coase, R. 1937. The nature of the firm. Economica, 4(16): 386–405.
Contractor, F. J. 2013. “Punching above their weight”: The sources of competitive advantage for emerging market multinationals. International Journal of Emerging Markets, 8(4): 304–328.
Cuervo-Cazurra, A. 2012. Extending theory by analyzing developing country multinational companies: Solving the goldilocks debate. Global Strategy Journal, 2(3): 153–167.
Cuervo-Cazurra, A., & Genc, M. 2008. Transforming disadvantages into advantages: Developing-country MNEs in the least developed countries. Journal of International Business Studies, 39(6): 957–979.
Dunning, J. 1993. Multinational enterprises and the global economy. London: Addison-Wesley.
Fernández-Méndez, L., García-Canal, E., & Guillén, M. F. 2015. Legal family and infrastructure voids as drivers of regulated physical infrastructure firms’ exposure to governmental discretion. Journal of International Management, 21(2): 135–149.
García-Canal, E., & Guillén, M. F. 2008. Risk and the strategy of foreign location choice in regulated industries. Strategic Management Journal, 29(10): 1097–1115.
Guillén, M. F., & García-Canal, E. 2009. The American model of the multinational firm and the “new” multinationals from emerging economies. The Academy of Management Perspectives, 23(2): 23–35.
Hashai, N., & Buckley, P. J. 2014. Is competitive advantage a necessary condition for the emergence of the multinational enterprise? Global Strategy Journal, 4(1): 35–48.
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M. A., Singh, H., Teece, D. J., et al. 2007. Dynamic capabilities: Understanding strategic change in organizations. Malden, MA: Wiley-Blackwell.
Hennart, J.-F. 2012. Emerging market multinationals and the theory of the multinational enterprise. Global Strategy Journal, 2(3): 168–187.
Holburn, G. L. F., & Zelner, B. A. 2010. Political capabilities, policy risk, and international investment strategy: Evidence from the global electric power generation industry. Strategic Management Journal, 31(12): 1290–1315.
Hymer, S. 1960. The international operations of national firms. Cambridge, MA: MIT Press.
Johanson, J., & Vahlne, J.-E. 1977. The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1): 25–34.
Johanson, J., & Vahlne, J.-E. 2009. The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9): 1411–1431.
Kale, P., & Singh, H. 2017. Management of overseas acquisitions by developing country multinationals and its performance implications: The Indian example. Thunderbird International Business Review, 59(2): 153–172.
Knickerbocker, F. T. 1973. Oligopolistic reaction and multinational enterprise. The International Executive, 15(2): 7–9.
Lall, S. 1983. The new multinationals: The spread of third world enterprises. Chichester, MA: Wiley.
Li, H., Yi, X., & Cui, G. 2017. Emerging market firms’ internationalization: How do firms’ inward activities affect their outward activities? Strategic Management Journal, (forthcoming).
Luo, Y., & Tung, R. L. 2007. International expansion of emerging market enterprises: A springboard perspective. Journal of International Business Studies, 38(4): 481–498.
Luo, Y., & Wang, S. L. 2012. Foreign direct investment strategies by developing country multinationals: A diagnostic model for home country effects. Global Strategy Journal, 2(3): 244–261.
Luo, Y., Zhao, H., Wang, Y., & Xi, Y. 2011. Venturing abroad by emerging market enterprises. Management International Review, 51(4): 433.
Madhok, A., & Keyhani, M. 2012. Acquisitions as entrepreneurship: Asymmetries, opportunities, and the internationalization of multinationals from emerging economies. Global Strategy Journal, 2(1): 26–40.
Marano, V., Tashman, P., & Kostova, T. 2017. Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises. Journal of International Business Studies, 48(3): 386–408.
North, D. C. 1990. Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.
Pedersen, T., & Shaver, J. M. 2011. Internationalization revisited: The big step hypothesis. Global Strategy Journal, 1(3–4): 263–274.
Powell, W. W., White, D. R., Koput, K. W., & Owen-Smith, J. 2005. Network dynamics and field evolution: The growth of interorganizational collaboration in the life sciences. American Journal of Sociology, 110(4): 1132–1205.
Ramamurti, R. (2012). What is really different about emerging market multinationals? Global Strategy Journal, 2(1): 41–47.
Ramamurti, R., & Singh, J. V. 2009. Emerging multinationals in emerging markets. Cambridge: Cambridge University Press.
Rugman, A. (2009). Theoretical Aspects of MNEs from Emerging Markets. In R. Ramamurti & J. V. Singh (Eds.), Emerging Multinationals in Emerging Markets (pp. 42–63). Cambridge: Cambridge University Press.
Scott, W. R. 2001. Institutions and organizations. New York: Sage Publications.
Tang, L., & Zhao, M. 2017. Information and integration: A study of emerging market multinationals. Working Paper, The Wharton School, University of Pennsylvania.
Teece, D. J., Pisano, G., & Shuen, A. 1997. Dynamic capabilities and strategic management. Strategic Management Journal, 18(7): 509–533.
Vernon, R. 1966. International investment and international trade in the product cycle. The Quarterly Journal of Economics, 80(2): 190–207.
Vernon, R. 1979. The product cycle hypothesis in a new international environment. Oxford Bulletin of Economics and Statistics, 41(4): 255–267.
Wells, L. T. 1983. Third world multinationals: The rise of foreign investment from developing countries. Cambridge, MA: MIT Press.
Williamson, O. E. 1985. The economic institutions of capitalism. New York: Free Press.
Xia, J., Ma, X., Lu, J. W., & Yiu, D. W. 2014. Outward foreign direct investment by emerging market firms: A resource dependence logic. Strategic Management Journal, 35(9): 1343–1363.
Xie, Z., & Li, J. 2017. Selective imitation of compatriot firms: Entry mode decisions of emerging market multinationals in cross-border acquisitions. Asia Pacific Journal of Management, 34(1): 47–68.
Zhou, N., & Guillén, M. F. 2015. From home country to home base: A dynamic approach to the liability of foreignness. Strategic Management Journal, 36(6): 907–917.
Zhou, C., Xie, J., & Wang, Q. 2016. Failure to complete cross-border M&As: “To” vs. “From” emerging markets. Journal of International Business Studies, 47(9): 1077–1105.
Acknowledgements
The authors are thankful to the Editor-in-Chief, Alain Verbeke, the anonymous reviewers, Lisa Tang, and participants in the AIB 2017 annual conference for their respective helpful comments and conversations that influenced the ideas in this article.
Author information
Authors and Affiliations
Corresponding author
Additional information
Accepted by Alain Verbeke, Editor-in-Chief, 9 November 2017. This article has been with the authors for one revision and was single-blind reviewed.
Accepted by Alain Verbeke, Editor-in-Chief, 9 November 2017. This article has been with the authors for one revision and was single-blind reviewed.
Rights and permissions
About this article
Cite this article
Hernandez, E., Guillén, M.F. What’s theoretically novel about emerging-market multinationals?. J Int Bus Stud 49, 24–33 (2018). https://doi.org/10.1057/s41267-017-0131-7
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1057/s41267-017-0131-7