Sub-theme 11: (SWG) The MNE and Developing Economies: Entering Markets and Managing Organizations
German University in Cairo, Egypt
Concordia University, Montréal, Canada
MacEwan University, Edmonton, Canada
Call for Papers
This sub-theme focuses on developing and emerging economies as both the destination and origin of multinational
corporations. The share of global FDI flows to, from and between developing economies has reached a critical level in recent
years. According to UNCTAD, developing economies received more FDI than all the triad countries combined for the first time
in history in 2012 (Zhan et al., 2013). These trends mirror the increasing purchasing power of local middle-class consumers.
On the one hand, as the economic influence of developing markets in the global economy increases so too is the importance
of understanding how western multinationals shape and are shaped by the environments of emerging markets. A key challenge
resides in the fact that the institutions of emerging and advanced economies are embedded in dissimilar contexts and entail
different dominant logics (Molz & Ratiu, 2012). Similarly, there is still little systematic knowledge that helps us to
map different types of emerging markets in terms of their institutional setting and dominant logics (Molz et al., 2010). Against
this background, we encourage research contributions that help shed light on the nature and mechanisms of interactions between
the foreign MNE and the political, economic, social, and institutional contexts of developing economies. We welcome new perspectives
on already researched phenomena (e.g., institutional voids and practice diffusion) and encourage submissions on under-researched
topics within the context of developing economies (e.g., innovation and entrepreneurship).
On the other hand,
the number of multinationals from emerging markets that joined the list of the world’s largest 500 multinationals reached
the record level of 127 in 2012 (Schwab, 2012). Such emerging multinationals are redrawing the picture of international trade
by outperforming their peers from advanced economies both at home (Bhattacharya & Michael, 2008) and abroad (Cuervo-Cazurra
& Genc, 2008). While the number and diversity of research on these firms has intensified in recent years (e.g., Ramamurti,
2009; Cuervo-Cazurra & Genc, 2008; Becker-Ritterspach & Raaijman, 2013), we have more questions than answers on the
distinctive behavior and competitive advantage of emerging multinationals.
Potential questions to be addressed
include, but are not limited to:
- How does social agency and economic rationality interact to shape the behavior
of MNEs in developing and emerging markets?
- How are western practices transferred and translated when being used
in developing markets?
- How do institutional settings and institutional logics differ in different emerging markets?
- Do multinationals from developing and emerging economies behave differently from their counterparts from more advanced
- Will institutional differences between advanced and developing economies be mediated over time? What
is the impact on the competitive advantages of emerging multinationals?
- What are the strategies used by western
multinationals to shape local institutions in developing markets?
- What are the strategies used by emerging multinationals
to compete with their peers from advanced or other emerging economies?
- Bhattacharya, A., & Michael, D. (2008): "How local companies keep multinationals at bay." Harvard Business Review,
86 (3), 84–95.
- Becker-Ritterspach, F., & Raaijman, T. (2013):"Global transfer and Indian Management: A historical
hybridity perspective." Management International Review, 1 (53), 141–166.
- Cuervo-Cazurra, A., &
Genc, M. (2008): "Transforming disadvantages into advantages: Developing-country MNEs in the least developed countries." Journal
of International Business Studies, 39 (6), 957–979.
- Molz, R., & Ratiu, C. (2012): "Logics of local actors
and global agents: divergent values, divergent world views." Critical Perspectives on International Business, 8 (3),
- Molz, R., Ratiu, C., & Taleb, A. (2010): The Multinational Enterprise in Developing Countries:
Local versus Global Logic. London: Routledge.
- Ramamurti, R. (2009): "What have we learned about emerging-market
MNEs?" In: R. Ramamurti & J.V. Singh (eds.): Emerging Multinationals in Emerging Markets. Cambridge, UK: Cambridge
University Press, pp. 399–426.
- Schwab, K. (2012): Global Competitiveness Report 2011–2012. Geneva: World
- Zhan, J. et al. (2013): World Investment Report 2013. Global Value Chains: Investment and
Trade for Development. New York: UNCTAD.
Florian Becker-Ritterspach is Professor of International Business at the German University in Cairo (GUC), Egypt. His research has focused on multinationals
in emerging markets, the internationalization of emerging market firms and cross-border knowledge transfer.
Rick Molz is Professor of Management at the John Molson School of Business, Concordia University, Canada. His research interests are
in international business strategy, particularly in developing, emerging and transitional economies.
Ali Taleb is Assistant Professor of Strategy and Global Management at MacEwan University, Canada. His current research focuses on the
internationalization process and corporate strategies of emerging multinationals from developing countries.