Improving knowledge on the entry mode decisions of emerging market multinationals

Abstract

A significant number of studies explore outward foreign direct investment (OFDI) by emerging market multinationals (EMNEs) mainly focussing on the rationale for and the evolution of such investments. It is not clear if the entry mode patterns established in studies on developed economy multinationals (DMNEs) are valid for EMNEs. This study assesses the literature on entry mode by EMNEs by volume of output by major academic disciplines, the evolution of the number of papers in the area, the theoretical underpinnings of the papers, the methodologies used in studies and the number of emerging economies that have been investigated. The review suggests that there is a need for research in this area especially by academic disciplines other than international business and area studies, and for studies to be extended to cover a larger range of emerging economies. It also suggests that the theoretical underpinning for such studies needs to be developed.