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The home country of the MNE: The case of emerging economy firms

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Abstract

Research on multinational enterprises that originate from emerging economies has highlighted the importance of the home country for firms' strategies of internationalization. In this paper, we outline a simple analytical framework linking institutions and resource munificence in the home country to the domestic business eco-system in an emerging economy, and thereby to strategies of outward investments. Specifically, we argue that businesses interact with each other in their home economy, and these patterns of interactions influence strategies of internationalization as companies not only compete with each other, but share resources, coordinate actions and serve as each other's role model. Strategies of outward investment thus reflect the competition and collaboration in their home country business eco-system.

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Copenhagen Business Sch, Dept Int Econ & Management, Porcelanshaven 24, DK-2000 Frederiksberg, Denmark

Simon Fraser Univ, Canada Res Chair Global Investment Strategy, Beedie Sch Business, Burnaby, BC V5A 1S6, Canada

China Europe Int Business Sch, Dept Strategy & Entrepreneurship, 699 Hongfeng Rd, Shanghai 201206, Peoples R China


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Source

Asia Pacific Journal of Management

ISSN:0217-4561

Year:2017

Issue:1

Volume:34

Page:1-17

ESI Discipline:ECONOMICS & BUSINESS;

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