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Developed country MNEs investing in developing economies: Progress and prospect

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Abstract

This study reviews research from 1970 through 2016 on developed country multinational enterprises (DMNEs) entering and competing in developing economies. To identify the current state of knowledge of this research and push it further, we review the literature using bibliometric and qualitative content analyses covering leading journals and books. We articulate frontier issues that are understudied yet critical to both theorization and practice of DMNEs in developing economies. We discuss the findings and conclusions from prior research along five key areas: (1) entering developing economies, (2) organizing local activities, (3) managing alliances and joint ventures, (4) competing in dynamic environments, and (5) dealing with institutions, governments and society. We offer prospective insights into future agenda that have important implications for MNE strategies and decisions, and propose frontier directions that encompass strategic localization, reverse transfer and adaptation, co-evolution with local business ecosystems, reorganizing and restructuring, and strategic responses to institutional and market complexity.

Résumé

Cette étude passe en revue les recherches menées de 1970 à 2016 sur les entreprises multinationales des pays développés (EMND) entrées et en concurrence dans les économies en développement. Pour identifier l’état actuel des connaissances sur cette recherche et le pousser plus loin, nous passons en revue la littérature à l’aide d’analyses de contenu bibliométrique et qualitatif couvrant des revues et ouvrages de référence. Nous formulons des problèmes futurs qui sont peu étudiés mais essentiels à la fois à la théorisation et à la pratique des EMND dans les économies en développement. Nous discutons des résultats et des conclusions de recherches antérieures dans cinq domaines clés: (1) l’entrée dans les économies en développement, (2) l’organisation des activités locales, (3) la gestion d’alliances et de coentreprises, (4) la concurrence dans des environnements dynamiques et (5) les relations avec les institutions, les gouvernements et la société. Nous proposons des connaissances prospectives sur le programme futur ayant des incidences importantes sur les stratégies et les décisions des EMN, et proposons des orientations frontalières englobant la localisation stratégique, le transfert inversé et l’adaptation, la co-évolution avec les écosystèmes d’affaires locaux, la réorganisation et la restructuration, ainsi que des réponses stratégiques à la complexité des institutions et des marchés.

Resumen

Este estudio revisa las investigaciones desde 1970 hasta el 2016 sobre las empresas multinacionales de países desarrollados que entran y compiten en economías en desarrollo. Para identificar el estado actual del conocimiento de esta investigación y llevarlo más lejos, revisamos la literatura usando un análisis de contenido bibliométrico y cualitativo cubriendo las principales revistas y libros. Articulamos los asuntos de frontera que están poco estudiados, aunque son críticos para la teorización y la práctica de las empresas multinacionales de países desarrollados en economías en desarrollo. Discutimos los hallazgos y las conclusiones de las investigaciones anteriores en cinco áreas clave: (1) la entrada a economías en desarrollo, (2) la organización de actividades locales, (3) la gestión de alianzas y joint ventures, (4) la competencia en entornos dinámicos, y (5) las relaciones con instituciones, gobiernos y sociedad. Ofrecemos puntos de vista prospectivos sobre la agenda futura que tiene implicaciones importantes para las estrategias y decisiones de las empresas multinacionales, y proponemos direcciones de frontera que engloban localización estratégica, transferencia y adaptaciones en reversa, co-evolución con ecosistemas empresariales locales, reorganización y re-estructuración, y respuestas estratégicas a la complejidad institucional y de mercado.

Resumo

Este estudo revisa pesquisas de 1970 até 2016 sobre empresas multinacionais de países desenvolvidos (DMNEs) que entram e competem em economias em desenvolvimento. Para identificar o estado atual do conhecimento desta pesquisa e ampliá-la, revisamos a literatura usando análises bibliométricas e de conteúdo qualitativo, abrangendo periódicos líderes e livros. Articulamos questões na fronteira que são pouco estudadas, mas essenciais tanto para a teorização quanto para a prática de DMNEs em economias em desenvolvimento. Discutimos as descobertas e conclusões de pesquisas anteriores em cinco áreas principais: (1) entrada em economias em desenvolvimento, (2) organização de atividades locais, (3) gestão de alianças e joint ventures, (4) concorrência em ambientes dinâmicos e (5) negociação com instituições, governos e sociedade. Oferecemos insights prospectivos sobre a agenda futura que têm importantes implicações para as estratégias e decisões de MNE, e propomos direções para a fronteira que abrangem localização estratégica, transferência reversa e adaptação, coevolução com ecossistemas de negócios locais, reorganização e reestruturação e respostas estratégicas para a complexidade de mercados e instituições.

摘要

本研究回顾了1970年至2016年发达国家跨国企业进入发展中国家投资的研究。我们采用涵盖主要期刊和书籍的文献计量以及定性内容分析的方法来审阅和推进这一领域的研究,并且阐述了对理论研究和企业实践都至关重要的前沿问题。我们将现有文献的研究结果分为五大主要领域:(1)进入发展中国家,(2)组织当地活动,(3)管理联盟和合资企业,(4)在动态环境中竞争,(5)应对制度、政府、社会。我们针对未来研究提出了前沿研究方向,包括战略本地化,逆向转移和适应,与当地商业生态系统的共同演化,重组和重建,以及对制度和市场复杂性的战略响应。这些前沿问题对跨国企业战略和决策具有重要意义。

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Acknowledgements

The authors are grateful to Professor Jeremy Clegg and three anonymous reviewers for their constructive comments and suggestions.

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Authors and Affiliations

  1. Miami Business School, University of Miami, Coral Gables, FL, 33124, USA

    Yadong Luo

  2. Sun Yat-Sen Business School, Sun Yat-Sen University, Guangzhou, China

    Yadong Luo & Huan Zhang

  3. Kelley School of Business, Indiana University, HH3100, 1309 E 10th Street, Bloomington, IN, 47405, USA

    Juan Bu

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  1. Yadong Luo
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  2. Huan Zhang
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Accepted by Jeremy Clegg, Guest Editor, 13 February 2019. This article has been with the authors for three revisions.

Appendix

Appendix

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Table 9 Top 20 most cited articles on DMNEs in developing economies
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Luo, Y., Zhang, H. & Bu, J. Developed country MNEs investing in developing economies: Progress and prospect. J Int Bus Stud 50, 633–667 (2019). https://doi.org/10.1057/s41267-019-00230-y

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