Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7413219 | Journal of World Business | 2018 | 15 Pages |
Abstract
Multinational Enterprises (MNEs) from emerging economies (EEs) are establishing operations in advanced economies (AEs), apparently departing from traditional models of internationalization. We explore an under-explored difference between EE MNE and their AE counterparts concerning their country of origin: EEs have less munificent business environments. This leads EE MNEs to make different location choices than AE MNEs when entering AEs, specifically because they are more deterred by barriers to entry. We therefore predict EE MNEs to be relatively more deterred by distance and weak intellectual property protection and relatively more attracted by diaspora of migrants and by markets. Our empirical results are consistent with these predictions.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Saul Estrin, Klaus E. Meyer, Adeline Pelletier,