Driving forces behind the international expansion strategies of non-European EMNEs – a comparative analysis of the Chinese and Brazilian cases

Abstract

The rise of multinational enterprises (MNEs) from emerging markets is topical, important and poses a number of questions and challenges that require considerable attention in the future from academia as well as business management. Outward foreign direct investment (OFDI) from non-European emerging regions is not a new phenomenon, what is new, is the magnitude that this phenomenon has achieved over the past one and a half decade. The recent takeovers of high-profile companies in developed or developing countries by non-European emergingmarket MNEs (EMNEs) – such as Lenovo, Wanhua (China), Hindalco (India), CVRD (Brazil), Cemex (Mexico), Lukoil (Russia), etc. – as well as the greenfield or brownfield investments of emerging companies (such as Huawei, ZTE, Tata, Pepco, etc.) show a new trend where new kind of firms become major players globally. According to the World Investment Report investments from emerging-markets reached a record level: “developing Asia now invests abroad more than any other region. Nine of the 20 largest investor countries were from developing or transition economies” (UNCTAD 2015: ix.). (...)