‘Outward investment from emerging economies’
Multinational companies from emerging economies (EMNCs) have become major players in the globalized world economy and wield growing influence on economic dynamics in developed, emerging, and developing countries alike. Firms and governments in developed countries increasingly need to engage with the array of challenges and opportunities presented by emerging market multinationals seeking access to markets and assets.
Important impacts of outward direct investment from emerging economies (OFDI) are also felt in developing host countries, where investments from emerging economies are becoming more and more significant. No less important are the effects in the home countries of the outward investing firms themselves. The rise of outward investment from emerging and developing countries requires further scrutiny theoretically, empirically and methodologically.
The emergence of MNCs from emerging economies raises a wide range
of challenges for theorists, business strategists, and policymakers alike,
- Are internationalization patterns and strategies of EMNCs qualitatively different from what we know from extant theories?
- What are the dynamics of motives with which EMNCs invest abroad, which strategies do they pursue and which challenges do they face?
- Are there systematic variations in EMNCs’ internationalization process by industry, technology base or country of origin?
- How do EMNCs impact on different types of host economies? How are costs and benefits distributed? How are benefits captured? Which new policy challenges do they introduce?
- How are home economies affected by the internationalization of domestic firms? Should home countries pursue particular policies to accelerate or otherwise influence their OFDI?
- Does the internationalization process tend to exhibit different characteristics and dynamics for EMNCs than for developed-economy MNCs? Is it distinct for capability-seeking FDI?
- From a co-evolutionary perspective, what are the dynamics of the interrelationship between institutional change and corporate strategy? How do EMNCs’ international activities impact institutional development at home?
- How do EMNCs leverage economic, political and social ties at home to access and compete in foreign markets, especially developed country markets?
- Which HRM strategies do EMNCs deploy to engage with local labor forces?
- How do industrial relations systems interact with EMNC strategies and strategy implementation?
- Do EMNCs differ from developed-country MNCs in terms of corporate governance and corporate social responsibility?
- What distinguishes international investment strategies by state-owned and privately owned EMNCs? Is government ownership enabler or liability in internationalization?
- Which are the roles of sovereign wealth funds?
- How does EMNC behavior vary between different industries and why?
- How does the rise of EMNCs influence global competition in different industries?