scholarly journals Reverse Innovation Reconceptualised: Much Geo-Economic Ado about Primary Market Shift

2018 ◽  
Vol 19 (4) ◽  
pp. 70-82 ◽  
Author(s):  
Nebojša Radojević
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Developed Countries ◽  
Economic Environment ◽  
Specific Situation ◽  
Reverse Innovation ◽  
Host Countries ◽  
Specific Host ◽  
Present Concept ◽  
Managerial Response

Present concept of reverse innovation urges multinational enterprises from developed countries to innovate for emerging markets, and to subsequently diffuse the outcome back to their home countries. The concept hence appears exclusively reserved for enterprises of particular size or origin, and for specific host countries or levels of development. This paper repositions the concept relatively to any enterprise’s dominant innovation logic, rather than relatively to its geo-economic environment. Reverse innovation thus becomes a template that any enterprise innovating for a new primary market abroad may customise to its specific situation regarding exogenous distances, endogenous distances, and managerial response.

The influence of motivations on international location choice in least developed, emerging and developed countries: evidence from Chinese MNEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernando Angulo-Ruiz ◽  
Albena Pergelova ◽  
William X. Wei
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Location Choice ◽  
Emerging Market ◽  
Developed Countries ◽  
Asia Pacific ◽  
Institutional Constraints ◽  
Least Developed Countries ◽  
Content Type ◽  
Developed Economies

Purpose This research aims to assess variations of motivations when studying international location decisions. In particular, this study aims to assess the influence of diverse motivations – seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints – as determinants of the international location choice of emerging market multinational enterprises (EM MNEs) entering least developed, emerging, and developed countries. Design/methodology/approach The authors develop a set of hypotheses based on the ownership–location–internalization framework and complement it with an institutional perspective. The conceptual model posits that the different internationalization motivations (seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints) will impact the location choice of EM MNEs in developed economies, emerging markets or least developed countries. This study uses the 2013 survey data collected by the China Council for the Promotion of International Trade and the Asia Pacific Foundation of Canada. The final sample of analysis of this research includes 693 observations. Findings After controlling for several variables, two-stage Heckman regressions show there is a variation of motivations when EM MNEs enter least developed countries, emerging markets and developed economies. EM MNEs are motivated to enter least developed countries to seek markets and resources. Conversely, those firms enter developed countries in their search for technological assets and to escape institutional constraints at home. While the present study findings show a clear difference in the motivations that lead to location choice in least developed vs developed countries, the results are not as clear for location in other emerging countries. Research limitations/implications The paper offers empirical support for the importance of motivations as crucial determinants of location choice. Originality/value This paper provides a detailed quantitative study on the internationalization location choice of EM MNEs based on their motivations. Though theoretical models underscore the importance of motivations, we know very little about how, in practice, motivations drive location choice. This study contributes to the international location choice literature a deeper understanding of how diverse motivations drive choices of expansion into developed economies, emerging markets or least developed countries.

Engineering the Roadmap of Reverse Innovation

2020 ◽  
pp. 745-755
Author(s):  
Pável Reyes-Mercado
Keyword(s):  
Product Development ◽  
Emerging Markets ◽  
Emerging Market ◽  
Developed Countries ◽  
Technology Planning ◽  
Reverse Innovation ◽  
Firm Level ◽  
Integrate Technology ◽  
Systematic Framework ◽  
Analyse Case

The reverse innovation concept has gained traction in the practitioner and academic domains since it alters the traditional view of innovations flowing from developed countries to emerging markets. Reverse innovations depart from the assumption that product development appeals to value offers with reduced performance and radically lower price points for consumers in emerging markets. Existing literature on reverse innovations has been limited to analyse case studies and anecdotic evidence but a systematic framework is needed to innovate in systematic ways. Drawing from the technology planning and forecasting, this paper proposes that technology roadmaps are suitable tools to analyse how a reverse innovation designed initially in an emerging market encroaches developed countries. At the firm level, roadmaps integrate technology planning, product development, and market aspects. Hence, they become suitable tools to design and commercialize products and services based on the reverse innovation paradigm.

Environmental impact of FDI – the case of US subsidiaries

2019 ◽  
Vol 27 (3) ◽  
pp. 226-246 ◽  
Author(s):  
João Paulo Cerdeira Bento ◽  
António Moreira
Keyword(s):  
Environmental Impact ◽  
Environmental Pollution ◽  
Multinational Enterprises ◽  
Recipient Country ◽  
Developed Countries ◽  
Environmental Benefits ◽  
Host Countries ◽  
Content Type ◽  
The Relationship ◽  
Developing And Developed Countries

Purpose This paper aims to examine how foreign direct investment (FDI) and firm-specific advantages (FSAs) of US multinational enterprises (MNEs) majority-owned subsidiaries affect environmental pollution in host countries. The research results contribute to helping managers and policymakers understand the environmental impact of MNEs activities, and encourage these firms to develop environmentally responsible management (ERM) as an element of their corporate social responsibility practice. Design/methodology/approach Panel data consisting of developing and developed countries spanning the years 2004 through 2014 are used. The dynamic panel generalised method of moments technique is implemented. This method avoids common estimation bias, such as endogeneity, heteroscedasticity and autocorrelation. Findings This paper finds that the direct environmental impacts of FDI vary significantly between the two groups of countries. The environmental benefits of FDI to the recipient country are achieved through capital and technology transfer. The study also reveals that R&D intensity moderates the relationship between FDI and environmental pollution in both developing and developed countries in such a way that environmental pollution decreases. Research limitations/implications Future research could explore the environmental impact of MNEs on host countries by considering both equity and non-equity entry modes. The findings offer some support to host government policies offering generous incentive packages to attract R&D investment to improve environmental pollution. This research raises questions as to the reasons corporations operating in developing and developed countries should pursue their ERM practices. Originality/value This research examines both the direct effect of FDI and the moderating effects of FSAs on the relationship between FDI and the environment. Although previous studies have already looked at the relationship between FDI and the environment, the moderating effect of FSAs is very under-developed in this relationship.

scholarly journals Integrating general and local context-dependent factors into a framework for analysing business sectors in Bottom-of-the-Pyramid emerging markets

2021 ◽  
Vol 5 (2) ◽  
pp. 85-118
Author(s):  
Maaike Broeksma ◽  
Bart Jan Willem (Bartjan) PENNINK
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Design Research ◽  
Developed Countries ◽  
Growth Potential ◽  
Local Context ◽  
Bottom Of The Pyramid ◽  
Country Differences ◽  
Context Dependent ◽  
Business Sectors

Abstract: Aim: This paper investigates how a framework for analysing business sectors in emerging markets looks like when taking into account the local context-dependent and general factors of The Bottom-of-the-Pyramid (BoP). The BoP segment in emerging markets represents a major growth potential for firms, including multinational enterprises (MNEs) from developed countries. However, the continued lack of success of MNEs in these markets has shown that generic one-size-fits-all strategies for the BoP are not appropriate as BoP contexts differ between countries. Design / Research methods: The sample that was selected for the research includes two non-governmental organizations (NGOs) related to the BoP and eight managers at MNEs with activities in the BoP have been interviewed in a semi-structured manner to collect rich data. Conclusion / findings: By interviewing eight managers at MNEs with activities in the BoP and two NGOs related to the BoP, an additional analysis, BoP-orientation, and further extensions to the original analyses are being presented. This results in an advanced framework for analysing business sectors in emerging markets. Originality / value of the article: Current frameworks for analysing business sectors in emerging markets do take into account inter-country differences but fail to recognize intra-country differences, which causes them to fall short on their applicability to the BoP. This paper fills the gap how frameworks for analysing business sectors in emerging markets can be made applicable for the BoP by taking into account both the local context-dependent and general factors of a BoP-market to analyse it for opportunities, threats, and eventually and strategic entry mode.

Engineering the Roadmap of Reverse Innovation

2018 ◽  
pp. 37-47
Author(s):  
Pável Reyes-Mercado
Keyword(s):  
Product Development ◽  
Emerging Markets ◽  
Emerging Market ◽  
Developed Countries ◽  
Technology Planning ◽  
Reverse Innovation ◽  
Firm Level ◽  
Integrate Technology ◽  
Systematic Framework ◽  
Analyse Case

The reverse innovation concept has gained traction in the practitioner and academic domains since it alters the traditional view of innovations flowing from developed countries to emerging markets. Reverse innovations depart from the assumption that product development appeals to value offers with reduced performance and radically lower price points for consumers in emerging markets. Existing literature on reverse innovations has been limited to analyse case studies and anecdotic evidence but a systematic framework is needed to innovate in systematic ways. Drawing from the technology planning and forecasting, this paper proposes that technology roadmaps are suitable tools to analyse how a reverse innovation designed initially in an emerging market encroaches developed countries. At the firm level, roadmaps integrate technology planning, product development, and market aspects. Hence, they become suitable tools to design and commercialize products and services based on the reverse innovation paradigm.

Reverse Innovation and the Bottom of the Pyramid Proposition

2014 ◽  
pp. 32-52
Author(s):  
Nebojša Radojević ◽  
Jahan Ara Peerally
Keyword(s):  
Multinational Enterprises ◽  
Large Scale ◽  
Social Impact ◽  
Developed Countries ◽  
Social Needs ◽  
Future Research ◽  
Bottom Of The Pyramid ◽  
Reverse Innovation ◽  
Developed Country ◽  
The Social

Analysing cases from India, this chapter reveals flaws in recent claims that reverse innovation can resolve some of the world's most urgent social problems. Reverse innovation implies the diffusion of innovations from developing to developed countries, and is therefore, per se, irrelevant for the social needs of the former. If understood more broadly, as a strategic approach, reverse innovation may reduce some dimensions of inequality. However, as an instrument of poverty reduction, reverse innovation equals the known and compelling but doubtful proposition that developed country multinational enterprises may induce large-scale prosperity simply by doing business with the world's poorest. In this chapter, the authors assess the social impact of reverse innovations and contrast previous wholesale claims on those impacts with an in-depth analysis. The authors’ analysis reveals that these social impacts are not as significant as currently believed. The chapter concludes by suggesting future research avenues on the bottom of the pyramid, which will be of key relevance to academics and managers alike.

Reverse Innovation and the Bottom of the Pyramid Proposition

2016 ◽  
pp. 1143-1164
Author(s):  
Nebojša Radojević ◽  
Jahan Ara Peerally
Keyword(s):  
Multinational Enterprises ◽  
Large Scale ◽  
Social Impact ◽  
Developed Countries ◽  
Social Needs ◽  
Future Research ◽  
Bottom Of The Pyramid ◽  
Reverse Innovation ◽  
Developed Country ◽  
The Social

Analysing cases from India, this chapter reveals flaws in recent claims that reverse innovation can resolve some of the world's most urgent social problems. Reverse innovation implies the diffusion of innovations from developing to developed countries, and is therefore, per se, irrelevant for the social needs of the former. If understood more broadly, as a strategic approach, reverse innovation may reduce some dimensions of inequality. However, as an instrument of poverty reduction, reverse innovation equals the known and compelling but doubtful proposition that developed country multinational enterprises may induce large-scale prosperity simply by doing business with the world's poorest. In this chapter, the authors assess the social impact of reverse innovations and contrast previous wholesale claims on those impacts with an in-depth analysis. The authors' analysis reveals that these social impacts are not as significant as currently believed. The chapter concludes by suggesting future research avenues on the bottom of the pyramid, which will be of key relevance to academics and managers alike.

scholarly journals A Gap in Brain Gain for Emerging Countries: Evidence of International Immigration on Non-Resident Patents

2020 ◽  
Vol 14 (1) ◽  
pp. 7
Author(s):  
Bolortuya Enkhtaivan ◽  
Jorge Brusa ◽  
Zagdbazar Davaadorj
Keyword(s):  
Developed Countries ◽  
Emerging Countries ◽  
Culture Learning ◽  
Host Countries ◽  
Creative People ◽  
Brain Gain ◽  
Ample Evidence ◽  
The World ◽  
Controversial Topic ◽  
Global Data

Immigration is a controversial topic that draws much debate. From a human sustainability perspective, immigration is disadvantageous for home countries causing brain drains. Ample evidence suggests the developed host countries benefit from immigration in terms of diversification, culture, learning, and brain gains, yet less is understood for emerging countries. The purpose of this paper is to examine the presence of brain gains due to immigration for emerging countries, and explore any gaps as compared to developed countries. Using global data from 88 host and 109 home countries over the period from 1995 to 2015, we find significant brain gains due to immigration for emerging countries. However, our results show that there is still a significant brain gain gap between emerging and developed countries. A brain gain to the developed host countries is about 5.5 times greater than that of the emerging countries. The results hold after addressing endogeneity, self-selection, and large sample biases. Furthermore, brain gain is heterogenous by immigrant types. Skilled or creative immigrants tend to benefit the host countries about three times greater than the other immigrants. In addition, the Top 10 destination countries seem to attract the most creative people, thus harvest the most out of the talented immigrants. In contrast, we find countries of origin other than the Top 10 seem to send these creative people to the rest of the world.

scholarly journals Globalization Impact on Multinational Enterprises

World ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 216-230
Author(s):  
Justine Kyove ◽  
Katerina Streltsova ◽  
Ufuoma Odibo ◽  
Giuseppe T. Cirella
Keyword(s):  
Developing Country ◽  
Multinational Enterprises ◽  
Developed Countries ◽  
Global Market ◽  
Data Availability ◽  
Negative Effects ◽  
Developed Country ◽  
Excellent Starting Point ◽  
Starting Point ◽  
The Impact

The impact of globalization on multinational enterprises was examined from the years 1980 to 2020. A scoping literature review was conducted for a total of 141 articles. Qualitative, quantitative, and mixed typologies were categorized and conclusions were drawn regarding the influence and performance (i.e., positive or negative effects) of globalization. Developed countries show more saturated markets than developing countries that favor developing country multinational enterprises to rely heavily on foreign sales for revenue growth. Developed country multinationals are likely to use more advanced factors of production to create revenue, whereas developing country multinationals are more likely to use less advanced forms. A number of common trends and issues showed corporate social responsibility, emerging markets, political issues, and economic matters as key to global market production. Recommendations signal a strong need for more research that addresses contributive effects in the different economies, starting with the emerging to the developed. Limitations of data availability and inconsistency posed a challenge for this review, yet the use of operationalization, techniques, and analyses from the business literature enabled this study to be an excellent starting point for additional work in the field.

scholarly journals CSR reporting by Chinese and Western MNEs: patterns combining formal homogenization and substantive differences

2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Irina Ervits
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Qualitative Content Analysis ◽  
Developed Economies ◽  
Csr Reporting ◽  
Business Operations ◽  
Advanced Economies ◽  
Chinese Mnes ◽  
Complex Picture ◽  
Corporate Social

AbstractIn light of the growing economic might and intensification of global activities of Chinese multinational enterprises (MNE), this paper looks into the nature of their corporate social responsibility (CSR) reporting. CSR communications of the largest Chinese companies and their counterparts from advanced economies have been compared based on quantitative and qualitative content analysis of CSR reports. A mixed method approach has been rarely utilized in the analysis of CSR reporting. To analyze CSR reports the paper uses a two-dimensional conceptual framework based on Wood (Acad Manag Rev 16:691–717, 1991); Jamali and Mirshak (J Bus Ethics 72:243–262, 2007) and Lockett, Moon and Visser (J Manag Stud 43:115–136, 2006); Moon and Shen (J Bus Ethics 94:613–629, 2010). The findings indicate that quantitatively Chinese MNEs display patterns of CSR reporting comparable to major MNEs in developed economies. This paper argues that just like MNEs from developed economies Chinese MNEs use a global CSR reporting template as a convenient tool to align and harmonize various isomorphic pressures. However, qualitatively substantive discrepancies in content have been also identified due to national or other contextual characteristics. The analysis reveals a complex picture of national and international isomorphic forces at play. The paper addresses the lack of consensus concerning convergence/divergence of CSR reporting across the globe and, more specifically, between developed economies and emerging markets. In this respect this paper responds to the general call for research looking into various aspects of business operations, including CSR reporting, of MNEs from emerging markets.

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