What’s theoretically novel about emerging-market multinationals?

Hernandez, Exequiel; Guillén, Mauro F.

doi:10.1057/s41267-017-0131-7

Cited by 138 publications

(115 citation statements)

References 39 publications

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“…A second constraint is that a strategic approach to location and entry mode choice may offer relatively few insights into decision-making processes. EMF internationalization needs to be examined based on ongoing processes in developing capabilities to become multinationals (Hernandez & Guillen, 2018;Ramamurti, 2012). Our literature review Table 1 Top 13 most-cited articles on the internationalization of emerging market firms.…”

Section: Identifying Impedimentsmentioning

confidence: 99%

“…In the current research dialogue, many researchers believe that refining mainstream theories suffices to explain the emergence and behaviors of EMFs (Ramamurti, 2012). Specifically, scholars have argued that existing theories need to be revised by incorporating boundary conditions that speak to the peculiarities of EMFs (Hernandez & Guillen, 2018;Verbeke & Kano, 2015). The studies in Table 1 put an emphasis on contextualizing extant theories by adding new variables or drawing on prior concepts to validate specific propositions, but rarely have these studies focused on new theory development.…”

Section: Yesmentioning

confidence: 99%

“…We can also examine how contexts influence the configurations of EMF ecosystems through social networks involving customer, supplier, and service relations. A chronological analysis of how these social ties evolve can yield insights into the dynamics of EMFs' ecosystems (Hernandez & Guillen, 2018). For example, we can explore why in similar social networks FDI by one set of EMFs can decline and stop, whereas FDI by another set of EMFs can rise and thrive.…”

Section: Contextualitymentioning

confidence: 99%

“…Rooted in relational thinking in economic geography, a geographic relational lens combines insights from research on foreign investment, social networks, and organization studies (Bathelt & Gluckler, 2003;Jones & Murphy, 2011;Yeung, 2005). It integrates social, political, economic, and cultural influences on EMF internationalization, to encourage researchers to rethink taken-for-granted assumptions and established logics, which, in turn, provides opportunities to generate interesting, innovative, and influential studies (Hernandez & Guillen, 2018).…”

Section: Introductionmentioning

confidence: 99%

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A geographic relational perspective on the internationalization of emerging market firms

2019

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The growth of outward foreign direct investment from emerging markets has led to increased scholarly attention on the internationalization of emerging market firms (EMFs). We break from the recent strategic approach on internationalizing EMFs to develop a problematization approach, which permits us to introduce a geographic relational perspective. We use this perspective to highlight process thinking, complex social realities, and relational practice as means by which to better develop theory on the internationalization of EMFs. Our emergent approach emphasizes the need to view EMF internationalization as deeply situated in multifaceted contextual influences, as influenced by path dependence and as manifested in practice. These three relational tenets (contextuality, path dependence, and practice) are central to our geographic relational approach's ability to generate new challenging research questions for understanding EMF internationalization. Consequently, we add novelty to the international business domain by bringing space and process to the forefront of the EMF research agenda. Journal of International Business Studies (2020) 51, 50-71.

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Section: Identifying Impedimentsmentioning

confidence: 99%

Section: Yesmentioning

confidence: 99%

Section: Contextualitymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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A geographic relational perspective on the internationalization of emerging market firms

2019

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“…While the effects of external or environmental conditions (e.g., political, institutional, economic, and technological environments) on risk behavior have been studied extensively (Boubakri, Mansi, & Saffar, 2013;Dunning, 1980;Henisz, Mansfield, & Von Glinow, 2010;Miller, 1993;Reeb, Kwok, & Baek, 1998;Werner, Brouthers, & Brouthers, 1996;Witt & Lewin, 2007), endogenous conditions or firm-level heterogeneity are not yet well understood, especially for EMNEs. Existing research tends to treat EMNEs as a group with common characteristics by comparing EMNEs to DMNEs; only a few recent works explore the heterogeneity among EMNEs (Hennart, 2012;Hernandez & Guillén, 2018;Thakur-Wernz & Samant, forthcoming). Why some EMNEs are more risk taking in international expansion, while others are not remains a puzzles.…”

mentioning

confidence: 99%

When are emerging market multinationals more risk taking?

Luo

2018

Global Strategy Journal

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Research Summary: This study examines the endogenous conditions under which emerging market multinationals (EMNEs) are more risk taking in entering and competing abroad. We argue that strategic asset‐seeking intent, financial abundance, and inward internationalization enable EMNEs to better manage uncertainty and capture benefits, resulting in greater levels of risk‐taking behaviors in foreign entry mode and global dispersion. We offer a process framework showing that the effects of endogenous forces on risk‐taking behaviors take place via a partial mediating role of risk‐taking propensity (entrepreneurial attitude toward risk). Our analysis of Chinese MNEs provides strong evidence validating these arguments. We discuss implications of our findings, intending to invigorate scholarly interests in risk management in a new era of globalization and stimulate understanding of EMNEs' strategic behaviors. Managerial Summary: Many EMNEs are risk taking and radical in undertaking outbound foreign direct investment (OFDI). Yet, it is misleading to assume that all EMNEs have high risk‐taking propensity or that all risk‐taking EMNEs are necessarily equally radical in all their international business (IB) activities. We seek to understand which firm‐specific forces importantly affect these firms' risk‐taking behaviors. Our analyses based upon Chines MNEs reveal that firms with greater levels of strategic asset‐seeking intent, financial abundance, and inward internationalization present significantly higher risk‐taking propensity and risk‐taking acts, including risky entry modes such as acquisitions and aggressive geographic dispersion.

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Born globals from emerging economies: Reconciling early exporting with theories of internationalization

McCormick

Somaya

2020

Global Strategy Journal

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Research SummaryWhat explains born global firms who internationalize very early through exports, when theories of internationalization recommend they focus on domestic markets first? While prior research suggests a number of factors that enable exporting by new ventures, empirical tests of these theories have not evaluated if these factors uniquely explain new venture exporting. We propose and empirically test hypotheses that exporting by young (relative to established) emerging‐economy firms increases when they tap into the drivers of modern globalization (Internet technologies, global talent flows) and overcome home‐country institutional constraints (government inefficiencies, location), all of which have bigger impacts on exporting by young firms than established ones. Understanding these unique drivers of born global emerging‐economy firms is critical for reconciling this phenomenon with traditional theories of firm internationalization.Managerial SummaryOur research finds that exporting by young firms are enabled to a greater extent (than established firms) when they use Internet technologies and tap into mobile talent (such as cross‐national entrepreneurs and leaders with international experience), which helps to overcome key constraints in tapping into international markets. We also found that young firms overcome home‐country institutional and infrastructure deficiencies in emerging economies, specifically, by receiving efficient government services and strategically locating in well‐resourced centers such as capital cities, which helps them more in exporting as compared to established firms. Our findings help to explain the modern phenomenon of “born global” firms, who have broken away from the traditional path of focusing first on domestic markets and then engaging in incremental international expansion.A video abstract is available at https://youtu.be/QPIR0CRazgw.

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What’s theoretically novel about emerging-market multinationals?

Cited by 138 publications

References 39 publications

A geographic relational perspective on the internationalization of emerging market firms

A geographic relational perspective on the internationalization of emerging market firms

When are emerging market multinationals more risk taking?

Born globals from emerging economies: Reconciling early exporting with theories of internationalization

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