Abstract
The rise of multinational enterprises from emerging countries (EMNEs) poses an important test for theories of the multinational enterprise such as internalisation theory. It has been contended that new phenomena need new theory. This paper proposes that internalisation theory is appropriate to analyse EMNEs. This paper examines four approaches to EMNEs—international investment strategies, domestic market imperfections, international corporate networks and domestic institutions—and three case studies—Chinese outward FDI, Indian foreign acquisitions and investment in tax havens—to show the enduring relevance and predictive power of internalisation theory. This analysis encompasses many other approaches as special cases of internalisation theory. The use of internalisation theory to analyse EMNEs is to be commended, not only because of its theoretical inclusivity, but also because it has the ability to connect and to explain seemingly desperate phenomena.
Highlights
This paper examines four research approaches to the rise of emerging market multinational enterprises—international investment strategies, domestic market imperfections, international corporate networks and the role of domestic institutions and shows how each is related to internalisationP
This paper examines four approaches to emerging countries (EMNEs)—international investment strategies, domestic market imperfections, international corporate networks and domestic institutions—and three case studies—Chinese outward foreign direct investment (FDI), Indian foreign acquisitions and investment in tax havens—to show the enduring relevance and predictive power of internalisation theory
This paper examines four research approaches to the rise of emerging market multinational enterprises—international investment strategies, domestic market imperfections, international corporate networks and the role of domestic institutions and shows how each is related to internalisation & Peter J
Summary
This paper examines four research approaches to the rise of emerging market multinational enterprises—international investment strategies, domestic (capital) market imperfections, international corporate networks (including business groups) and the role of domestic institutions and shows how each is related to internalisation. It examines three empirical manifestations of EMNEs—the case of Chinese EMNEs, foreign acquisitions by Indian MNEs and the involvement of EMNEs in tax havens, using the four key strands of theory. The relevance and predictive power of internalisation theory is shown throughout
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