1 AbstractPurpose: The purpose of this paper is to examine the determinants of Greenfield Emerging Market (EM) Outward Foreign Direct Investment (OFDI) into the UK, a Developed Market (DM) host. Despite the increasing significance of EM OFDI, this particular theme of EM OFDI to a DM host has received relatively little attention from researchers. This paper seeks to address this shortfall.Design/methodology/approach: Considering the distinctiveness of EM OFDI in its firmspecific characteristics, given circumstances and motivations, this paper applies adapted 'Resource-based view (RBV)' framework and institutional theory to build a theoretical framework. A range of hypotheses regarding 'strategic-asset seeking', 'market-seeking' and 'institution-seeking' motivations of EM OFDI, which reflect both 'pull factors' (advantages in hosts) and 'push factors' (disadvantages at home), were then developed. Using panel data for the years 2003-2012, the research questions were analysed using a sample of the then most important emerging market source countries which had undertaken Greenfield FDI into the UK.Findings: The analysis results supported the hypotheses that strategic-asset seeking and institution-seeking motivations were important in determining EM OFDI to the UK, with the coefficients of relevant variables showing statistical significance and expected sign (i.e. positive). However, the hypothesis on market-seeking motivation of EM OFDI cannot be supported as the coefficient of the relevant variable, whilst showing the expected sign, had a statistically insignificant coefficient. Amongst the three control variables, the source countries' exports and imports as a percentage of GDP was statistically significant and had the correct sign whilst, the UK's share of intra-EU trade, whilst statistically significant, had the opposite sign to that expected. The third control variable, the exchange rate was not statistically significant, though it had the correct sign.Originality/value: This paper provides an adjusted theoretical framework for the analysis of EM OFDI to DM with a novel application of institutional theory and RBV. It also qualifies and extends existing works on EM OFDI by including a wider range of EM source countries and DM hosts with empirical analysis results as well as theoretical suggestions. In addition, the paper offers up a range of policy implications for DM hosts.
This chapter focuses on the dynamics of MHC-SME collaboration on sustainability in an emerging country context. The findings show that MHC sustainability policy is generally driven from headquarters and that economic sustainability has priority over environmental and social sustainability. By contrast, SMEs appear to be able to initiate fully sustainable strategies based on the culture, tradition, family history, industry, and ethical standing of the owners. The interaction of MHCs and SMEs in relation to sustainability involves varying factors at the macro, meso, and micro levels. However, the micro level factor (i.e., human agency) seems to be the determining factor of the relationship. The authors provide rich contextual data by adopting a qualitative research method (case study) based on primary data, which is rare in international business literature.
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