Political risks and foreign direct investments by multinational corporations: A reference point approach

2020 ◽  
Author(s):  
Naoki Yasuda ◽  
Masaaki Kotabe
Keyword(s):  
Multinational Corporations ◽  
Reference Point ◽  
Foreign Direct Investments ◽  
Political Risks ◽  
Reference Point Approach

Technological knowledge access and transfer of multinational corporations from emerging economies: a comparison study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhang
Keyword(s):  
Multinational Corporations ◽  
Emerging Economies ◽  
Explicit Knowledge ◽  
Technological Knowledge ◽  
Foreign Direct Investments ◽  
Industrialized Countries ◽  
Content Type ◽  
Wilcoxon Rank Sum Test ◽  
The Us ◽  
Knowledge Access

Purpose This study aims to analyze the subsequent investment success of EMNCs after their strategic asset-seeking foreign direct investments (FDIs), while internationalization trajectories of multinational corporations from emerging economies (EMNCs) have been extensively studied, Post-internationalization investment success of EMNCs is defined as extensive technological knowledge access and transfer for knowledge combination. This paper focuses on EMNC explicit knowledge access and transfer. Design/methodology/approach This study analyzes US patents granted between 2000 and 2014 to leading innovation-oriented EMNCs from China and India as well as to their key competitors from mature industrialized countries (MMNCs). Wilcoxon Rank Sum Test is used to compare the explicit technological knowledge access and transfer patterns of EMNCs and MMNCs. With MMNCs as the benchmark, the comparison allows to imply the patterns and extent of technological knowledge access and transfer of EMNCs. Findings While subsidiary reverse knowledge transfer is largely missing, EMNCs adopt a parent-centric approach in which the parent directly accesses and transfers explicit knowledge from the external environment of host locations. In doing so, EMNCs at least partially achieve the knowledge access and transfer goals of strategic asset-seeking FDIs. Originality/value This study contributes to an in-depth understanding of EMNCs by empirically testing key predictions in extant EMNC literature, namely, the strategic asset-seeking in host locations and the systematic integration of accessed knowledge and resources with home country activities. This study also pioneers the use of the US patent and citation data to empirically study EMNCs.

Chinese Wisdom, World Quality

2016 ◽  
pp. 237-259
Author(s):  
Cheryl Marie Cordeiro
Keyword(s):  
Multinational Corporations ◽  
Automobile Industry ◽  
Global Economy ◽  
Rapid Development ◽  
Typical Feature ◽  
Foreign Direct Investments ◽  
Growth Strategies ◽  
Home Base ◽  
Systematic Analysis ◽  
Visual Semiotics

The typical feature of emergent economies is a slow, apparent transformation from being predominantly a home base of Foreign Direct Investments (FDI) to becoming more home markets for various firms that expand internationally. In this aspect, China differs from its Asian forerunners. Without question, the most rapid development in recent decades within East Asia and the global economy as a whole is the (re-)emergence of China. While most studies on growth strategies for multinational corporations from emerging economies come from the perspective of economic strategies in international business, this study offers a novel perspective by using visual semiotics as a framework of study and analysis of data. It uses theories of social semiotics borne of the traditions of linguistics to conduct a systematic analysis of the representations of China's desire to go global with their automobile industry. The company in focus is China's Zhejiang Geely Holding Group (Geely) in the years between 2007 to 2011, just prior to an after its acquisition of Volvo Car Corporation (VCC).

scholarly journals Review HR Perspective toward the Role of Multinational Corporations (MNCs) in Thailand

2018 ◽  
Vol 1 (2) ◽  
pp. 38
Author(s):  
Sineenat Suasungnern ◽  
Nico Irawan ◽  
Atchara Salee ◽  
Ada Marie Gallego Mascarinas
Keyword(s):  
Developing Countries ◽  
Multinational Corporations ◽  
Ethical Behavior ◽  
Foreign Direct Investments ◽  
Public Employees ◽  
Skilled Workers ◽  
Labor Laws ◽  
Instrumental Study ◽  
Quality Program

The study is using a qualitative strategy to describe the HR perspective towards the Role of Multinational Corporations (MNCs) in Thailand by using the pervious instrumental study review. Then, the data was classified into three parts: Part I: MNCs in developing countries; Part II: Overview the context of Thailand; Part III: Review the Role of MNCs in Thailand from the HR Perspective. As Thailand is a developing country which takes into account of globalization activities, hence, MNCs play an important role to enhance the level of economic growth. The developing countries must improve their infrastructure and skilled workers to be reach the competitive advantage among region and attractive to foreign direct investments. The result of the study showed the characteristics in social context in Thailand, how the beliefs of Thai society impact ethical behavior, attitude in business and implications of HR practices. Thai political context is identified the situation of replacement employees. The study describe that the qualification require has go to foreigners rather than Thai workers. Thai labor laws has identified the inequality of Social Security Circumstances between private sector, agricultural workers, and public employees. and the role of MNCs in Thailand from the HR perspective. It shows that HRD systems must be able to enhance and build a quality program to put people to work. 

scholarly journals Influence of external factors on foreign direct investment flows using the example of the Visegrad Group and Serbia

2021 ◽  
Vol 69 (3-4) ◽  
pp. 80-94
Author(s):  
Aleksandar Kemiveš ◽  
Lidija Barjaktarović
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Regional Cooperation ◽  
Business Environment ◽  
External Factors ◽  
Foreign Direct Investments ◽  
Political Risks ◽  
The Republic ◽  
The Impact ◽  
Visegrad Group

This research paper examines the impact of external factors on the dynamics of foreign direct investment (FDI) trends in specific economies. The same subject will be analyzed through the examples of the Visegrad Group and the Republic of Serbia. The aim of the research is to determine the existence of a link between the impact of foreign direct investments on the growth and development of the economy observed through gross domestic product (GDP) in the 1990-2018 period. The results of the research indicate that Poland was the most successful in attracting and keeping FDI, compared to other countries. Further, the volume of FDI has been dependent on several external factors, such as overall business environment, economic crisis, political risks, positions in relevant institutions, pandemic, etc. Moreover, for the Republic of Serbia, it will be important that all stakeholders in the country have a proactive approach in order to keep FDI in the country. Finally, representatives of the authorities should be committed to fulfilling promised deals related to the regional cooperation and EU (European Union) accession and integration.

Chinese multinationals’ FDI motivations: suggestion for a new theory

2019 ◽  
Vol 14 (1) ◽  
pp. 70-90 ◽  
Author(s):  
Byung Il Park ◽  
Taewoo Roh
Keyword(s):  
Mergers And Acquisitions ◽  
Multinational Corporations ◽  
Emerging Market ◽  
Developed Countries ◽  
Future Research ◽  
Foreign Direct Investments ◽  
Data Set ◽  
Content Type ◽  
Developed Economies ◽  
Chinese Mncs

Purpose The purpose of this paper is to complement the conventional international business (IB) theory, the OLI perspective, which is good at explaining the foreign direct investments (FDIs) undertaken by developed market multinational corporations (DMNCs). This study also suggests a new theoretical framework, namely, the OILL paradigm, that is able to encompass FDIs from emerging market multinational corporations (EMNCs) toward developed economies. Design/methodology/approach The data comprising 206 Chinese MNCs, which completed international mergers and acquisitions (IMAs), were obtained from Zephyr. By using these data, logical regressions are conducted to statistically confirm that we should not omit the learning motivation if we want to adequately understand the FDI phenomenon by encompassing investment flow from developing (or emerging) to developed countries. Findings The results based on this data set indicate that EMNCs often try to enter developed economies with the motivation to seek sophisticated foreign host knowledge that is not available internally. In particular, they tend to use IMA strategies when they want to learn from heterogeneity (i.e. inter-industry mergers and acquisitions) and absorb advanced technologies from DMNCs. Research limitations/implications By shedding light on the recent new trend in FDI (i.e. FDI from emerging countries to developed economies), the study provides useful theoretical implications, as well as suggesting scholarly contributions. However, we should acknowledge that there are some limitations to this study. First, the study explores only Chinese MNCs. Second, learning motivations need to be minutely and precisely measured by other studies. Third, this study argues that FDI from EMNCs to DMNCs is triggered by the former’s motivation concerning knowledge acquisition. However, the type of knowledge should be considered, and this is perhaps another avenue for future research. Practical implications Conventional IB theories, such as the OLI paradigm and internalization theory, have long sought to answer the question of why DMNCs go for foreign markets, in spite of the presence of the liabilities of foreignness, and focused on their main investment motivations (i.e. market-seeking, efficiency-seeking and resource-seeking motivations). For this reason, these theories do not adequately capture the primary FDI motivations of EMNCs, and consequently, they are unable to see the big picture when it comes to the FDI phenomenon. Based on this idea, the authors complement the well-known triad motivations (i.e. market-seeking, efficiency-seeking and resource-seeking motivations) by adding the knowledge-seeking motive and contribute to the evolution of IB theories by suggesting a new theory, which is the OILL paradigm. Originality/value The study contributes to the extant literature in the field of IB in two key ways. First, it examines EMNCs’ central motivations in conducting FDI where empirical research is sparse. By doing this, this paper attempts to solve the query indicated above (i.e. why MNCs choose FDI in spite of the presence of the liabilities of foreignness), and it offers a new theory (i.e. the OILL paradigm).

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