Multinational enterprises motivational factors in capitalizing emerging market opportunities and preparedness of India

Abstract

PurposeThe purpose of the study is to heighten intrinsic advantages, dis-advantages, being enjoyed by emerging country firms and the motivational factors that influence multinational enterprises (MNEs) to establish long-lasting relationship with emerging economies. The study also highlights the steps initiated by India by executing reform friendly foreign direct investment policy to attract foreign investments.Design/methodology/approachThe study is descriptive in nature, based on secondary data, sourced from various reports of India Government and the Central Bank of India.FindingsThe Indian economy has undergone profound and substantial liberalization and made sweeping reforms in most of its sectors besides adopting internationalization policy agendas to upkeep their domestic firms in “going global”. However, India needs to amend the existing restrictive labour and land laws besides providing efficient employable workforce. India further needs a less cash economy, which ultimately marches into digitized credit system to build India as one of the best attractive countries in the eyes of global investors.Research limitations/implicationsAs the study is based on secondary data, it may be general, in explicit and may not be perfect in concluding decision.Social implicationsMNEs play a major force in driving globalization of the world economy. However, MNEs face a variety of complex and multiple challenges in establishing strategic control over emerging economies. In spite of all odds, MNEs generate and capture value to host country firms by applying unique business models besides combining with or buying a foreign business.Originality/valueInvestment flows to India for the past 15 years (2005-2019) are critically analysed to justify research questions. Further, in the literature “Preparedness of India”, a lot of new interesting insights, incorporated.