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The home country of the MNE: The case of emerging economy firms

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Abstract

Research on multinational enterprises that originate from emerging economies has highlighted the importance of the home country for firms’ strategies of internationalization. In this paper, we outline a simple analytical framework linking institutions and resource munificence in the home country to the domestic business eco-system in an emerging economy, and thereby to strategies of outward investments. Specifically, we argue that businesses interact with each other in their home economy, and these patterns of interactions influence strategies of internationalization as companies not only compete with each other, but share resources, coordinate actions and serve as each other’s role model. Strategies of outward investment thus reflect the competition and collaboration in their home country business eco-system.

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Authors and Affiliations

  1. Department of International Economics and Management, Copenhagen Business School, Porcelanshaven 24, 2000, Frederiksberg, Denmark

    Bersant Hobdari & Peter Gammeltoft

  2. Canada Research Chair in Global Investment Strategy, Beedie School of Business, Simon Fraser University, V5A 1S6, Burnaby, BC, Canada

    Jing Li

  3. Department of Strategy and Entrepreneurship, China Europe International Business School, 699 Hongfeng Road, Pudong, Shanghai, 201206, China

    Klaus Meyer

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  1. Bersant Hobdari
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Correspondence to Bersant Hobdari.

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Hobdari, B., Gammeltoft, P., Li, J. et al. The home country of the MNE: The case of emerging economy firms. Asia Pac J Manag 34, 1–17 (2017). https://doi.org/10.1007/s10490-017-9505-4

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