Emerging Country MNEs And The Role Of Home Countries: Separating Fact From Irrational Expectations
Source: United Nations University
This paper takes a look at the research on Emerging country MultiNational Enterprises (EMNEs) over the last 25 years, and argues that growth in EMNE activity over the last 10 years continues to be dominated by Asian Newly Industrialised Countries (NICs), and to a lesser extent by Brazil, Russia, India and China (the BRICS). Instead of focusing on the success stories, the authors ask: Why have so few emerging home countries failed to fulfill their potential as significant outward investors, and converged (at least) with the NICs? Many of the EMNEs from the non-NICs continue to reflect limited O advantages, and unless they are able to upgrade their firm-specific assets, this trend is likely to continue.