Emerging Multinationals in Emerging Markets

✍ Scribed by Ravi Ramamurti, Jitendra V. Singh

• Publisher: Cambridge University Press
• Year: 2009
• Tongue: English
• Leaves: 461
• Edition: 1
• Category: Library

✦ Synopsis

Why have so many firms in emerging economies internationalized quite aggressively in the last decade? What competitive advantages do these firms enjoy and what are the origins of those advantages? Through what strategies have they built their global presence? How is their internationalization affecting Western rivals? And, finally, what does all this mean for mainstream international business theory? In Emerging Multinationals in Emerging Markets, a distinguished group of international business scholars tackle these questions based on a shared research design. The heart of the book contains detailed studies of emerging-market multinationals (EMNEs) from the BRIC economies, plus Israel, Mexico, South Africa, and Thailand. The studies show that EMNEs come in many shapes and sizes, depending on the home-country context. Furthermore, EMNEs leverage distinctive competitive advantages and pursue distinctive internationalization paths. This timely analysis of EMNEs promises to enrich mainstream models of how firms internationalize in today's global economy.

✦ Table of Contents

Half-title......Page 5
Title......Page 7
Copyright......Page 8
Dedication......Page 9
Contents......Page 11
List of figures page......Page 13
List of tables......Page 15
List of abbreviations......Page 17
List of contributors......Page 19
Acknowledgments......Page 21
Part I: Introduction......Page 23
1 Why study emerging-market multinationals?......Page 25
Multinationals from rich and poor countries......Page 27
Research questions and prevailing IB theory......Page 32
Overview of the book......Page 38
References......Page 41
Underlying arguments of earlier work......Page 45
Dated ideas......Page 48
Search for cheaper labor......Page 50
Innovation of products for emerging markets......Page 52
Other conventional explanations......Page 53
State investment......Page 55
Search for marketing skills......Page 57
Non-national......Page 58
New service firms......Page 59
Some additional research questions......Page 60
Go beyond the country studies......Page 61
Study industries......Page 62
Consider the incomplete Darwinian process......Page 63
3 Theoretical aspects of MNEs from emerging economies......Page 64
The world's largest multinationals......Page 66
The regional aspects of multinational enterprises......Page 67
Multinationals from emerging markets......Page 68
Internalization theory and emerging economy MNEs......Page 72
The FSAs and CSAs of emerging economy MNEs......Page 74
Asia's multinationals......Page 77
Applying the FSA/CSA matrix in Asia......Page 78
Conclusions......Page 81
References......Page 83
4 Does firm ownership matter? POEs vs. FOEs in the developing world......Page 86
Business groups......Page 88
De-colonization and the destiny of FOEs......Page 90
Services......Page 95
Conclusion......Page 96
References......Page 98
Part II: Country Studies......Page 101
5 Chinese multinationals: Emerging through new global gateways......Page 103
Cost innovation: From country-specific to firm-specific advantage......Page 104
Local optimizer......Page 107
Lost-cost partner......Page 108
Global consolidator......Page 109
Global first-mover......Page 110
Globalization opens new gateways to entry......Page 113
Outsourcing opens the gates......Page 114
Modular products and services......Page 115
The codification of knowledge......Page 116
Concentration and internationalization of retailing......Page 117
Globalization of the markets for talent and services......Page 118
Weaknesses of the emerging Chinese multinationals......Page 121
Limited size of the Chinese and developing markets......Page 122
Immature industries......Page 123
Systemic businesses......Page 124
Intangible assets......Page 125
An additional generic strategy: The demand wedge......Page 126
Using the demand wedge......Page 127
Conclusion: The emergence of Chinese multinationals will reshape global competition......Page 130
References......Page 131
6 Indian multinationals: Generic internationalization strategies......Page 132
India's first and second waves of outward FDI......Page 135
Emerging Indian multinationals......Page 138
Strategies for internationalization......Page 146
Generic strategy 1: The local optimizer......Page 150
Illustrative example......Page 153
Generic strategy 2: Low-cost partner......Page 156
Illustrative examples......Page 158
Generic strategy 3: The global (or regional) consolidator......Page 162
Illustrative examples......Page 165
Generic strategy 4: The global first-mover......Page 168
Illustrative example......Page 169
Combining or morphing across generic strategies......Page 174
Pathways for strategy migration......Page 176
Non-Indian examples......Page 179
Summary and some future directions......Page 180
References......Page 183
7 Russian multinationals: Natural resource champions......Page 189
The Russian economy......Page 190
Energy-driven......Page 191
Role of the government......Page 193
Origins in the 1990s privatization era......Page 196
Putin government's economic strategy supports MNEs......Page 198
MNE industry sectors......Page 199
MNE corporate goals......Page 202
Growth strategies for building international presence......Page 203
Sustainability of MNE competitive advantages......Page 206
Russian MNEs have changed global dynamics......Page 209
For emerging-market firms......Page 211
For natural resource-based MNEs......Page 213
For non-natural resource-based MNEs......Page 214
For Russian public policy makers......Page 215
Conclusion......Page 216
References......Page 218
8 Brazilian multinationals: Surfing the waves of internationalization......Page 222
Industry in Brazil before the first wave: 1900–1950......Page 223
Speeding up the industrialization project: The 1950s......Page 224
The 1960s and 1970s: Slowing down and speeding up again......Page 225
The exhaustion of the import substitution model: 1975–1990......Page 228
Industrial restructuring in the 1990s......Page 229
The Mercosur experience......Page 232
The Brazilian MNEs: An overall view......Page 233
Petrobras......Page 237
Companhia Vale do Rio Doce – CVRD......Page 239
Comments......Page 241
Companhia Siderurgica Nacional – CSN......Page 242
Gerdau......Page 243
Comments......Page 245
Tigre......Page 246
Duratex......Page 247
The consumer goods Brazilian MNEs......Page 248
InBev/AmBev......Page 249
Coteminas......Page 250
Comments......Page 251
The equipment suppliers' Brazilian MNEs......Page 252
WEG......Page 253
Embraer......Page 255
Marcopolo......Page 257
Comments......Page 258
Final comments and conclusions......Page 259
References......Page 263
9 South African multinationals: Building on a unique legacy......Page 266
Where does South African big business come from?......Page 267
Patterns of internationalization......Page 271
Geographic distribution......Page 272
Mode of entry......Page 275
South African firms in the global economy......Page 279
Firm-specific ownership advantages......Page 283
Conditions in local and global markets......Page 284
Extensive internationalization and entry into developed-country markets
......Page 285
Regional multinationalization......Page 290
Mixed internationalization......Page 292
Conclusions......Page 295
References......Page 298
Appendix: Case selection and data compilation......Page 300
10 Mexican multinationals: Insights from CEMEX......Page 302
Why do MNEs (and EMNEs) exist?......Page 305
The CEMEX case......Page 311
Laying the groundwork for internationalization......Page 312
Stepping out......Page 314
Accelerating internationalization and consolidating the CEMEX Way......Page 317
Stepping up......Page 320
Extending the theory of EMNEs......Page 323
Conclusions......Page 328
References......Page 329
11 Thai multinationals: Entering the big league......Page 334
Outward FDI from developing countries: When, where, and how......Page 335
Competitive advantages of multinationals from developing economies......Page 336
Thailand's outward FDI: Patterns and trends......Page 338
Case studies......Page 344
The CP group......Page 345
The Siam Cement Group (SCG)......Page 347
The S&P group......Page 352
PTT......Page 353
Geographical spread......Page 356
Motives......Page 359
Nature of competitive advantages......Page 361
Conclusion: Past, present, and future of Thai multinationals......Page 365
References......Page 368
Websites......Page 373
12 Israeli multinationals: Competing from a small open economy......Page 374
Israel – the country and its economy......Page 376
The new managers......Page 382
One successful example – Teva Pharmaceutical Industries......Page 386
Outward FDI from Israel: Facts and figures......Page 390
A case study of a successful born global......Page 402
Some lessons from the Israeli experience......Page 405
A few public policy issues......Page 410
Conclusions......Page 413
References......Page 416
Part III: Conclusions......Page 419
13 What have we learned about emerging-market MNEs?......Page 421
Country-specific advantages......Page 424
Firm-specific advantages......Page 426
Products suited to emerging markets......Page 427
Privileged access to resources and markets......Page 429
Traditional intangible assets......Page 431
Generic internationalization strategie......Page 432
Impact on global competition......Page 438
Implications for IB theory......Page 440
Index......Page 449