Table Of ContentTHE ACADEMY OF INTERNATIONAL BUSINESS
Published in Association with the UK Chapter of the Academy of International Business
Titles already published in the series:
International Business and Europe in Transition (Volume 1)
Edited by Fred Burton, Mo Yamin and Stephen Young
Internationalisation Strategies (Volume 2)
Edited by George Chryssochoidis, Carla Miller and Jeremy Clegg
The Strategy and Organization of International Business (Volume 3)
Edited by Peter Buckley, Fred Burton and Hafiz Mirza
Internationalization: Process, Context and Markets (Volume 4)
Edited by Graham Hooley, Ray Loveridge and David Wilson
International Business Organization (Volume 5)
Edited by Fred Burton, Malcolm Chapman and Adam Cross
International Business: Emerging Issues and Emerging Markets (Volume 6)
Edited by Carla C. J. M Millar, Robert M. Grant and Chong Ju Choi
International Business: European Dimensions (Volume 7)
Edited by Michael D. Hughes and James H. Taggart
Multinationals in a New Era: International Strategy and Management (Volume 8)
Edited by James H. Taggart, Maureen Berry and Michael McDermott
International Business (Volume 9)
Edited by Frank McDonald, Heinz Tusselman and Colin Wheeler
Internationalization: Firm Strategies and Management (Volume 10)
Edited by Colin Wheeler, Frank McDonald and Irene Greaves
The Process of Internationalization (Volume 11)
Edited by Frank MacDonald, Michael Mayer and Trevor Buck
International Business in an Enlarging Europe (Volume 12)
Edited by Trevor Morrow, Sharon Loane, Jim Bell and Colin Wheeler
Managerial Issues in International Business (Volume 13)
Edited by Felicia M. Fai and Eleanor J. Morgan
Anxieties and Management Responses in International Business (Volume 14)
Edited by Rudolf Sinkovics and Mo Yamin
Corporate Governance and International Business (Volume 15)
Edited by Roger Strange and Gregory Jackson
Contemporary Challenges to International Business (Volume 16)
Edited by Kevin Ibeh and Sheena Davies
Resources, Efficiency and Globalisation (Volume 17)
Edited by Pavlos Dimitratos and Marian V. Jones
Firm-Level Internationalization, Regionalism and Globalization (Volume 18)
Edited by Jenny Berrill, Elaine Hutson and Rudolf Sinkovics
International Business (Volume 19)
Edited by Simon Harris, Olli Kuivalainen and Veselina Stoyanova
The Changing Geography of International Business (Volume 20)
Edited by Gary Cook and Jennifer Johns
International Business and Institutions after the Financial Crisis (Volume 21)
Edited by Yama Temouri and Chris Jones
The Rise of Multinationals
from Emerging Economies
Achieving a New Balance
Edited by
Palitha Konara
University of Huddersfield, UK
Yoo Jung Ha
University of York, UK
Frank McDonald
University of Liverpool, UK
and
Yingqi Wei
University of Leeds, UK
Selection, introduction and editorial content © Palitha Konara, Yoo Jung Ha,
Frank McDonald and Yingqi Wei 2015
Individual chapters © Contributors 2015
F oreword © Heinz Tüselmann 2015
Softcover reprint of the hardcover 1st edition 2015 978-1-137-47310-3
All rights reserved. No reproduction, copy or transmission of this
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may be liable to criminal prosecution and civil claims for damages.
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in accordance with the Copyright, Designs and Patents Act 1988.
First published 2015 by
PALGRAVE MACMILLAN
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registered in England, company number 785998, of Houndmills, Basingstoke,
Hampshire RG21 6XS.
Palgrave Macmillan in the US is a division of St Martin’s Press LLC,
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Palgrave Macmillan is the global academic imprint of the above companies
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Palgrave® and Macmillan® are registered trademarks in the United States,
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ISBN 978-1-349-50135-9 ISBN 978-1-137-47311-0 (eBook)
DOI 10.1057/9781137473110
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources. Logging, pulping and manufacturing
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A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Konara, Palitha.
The rise of multinationals from emerging economies : achieving a new balance /
Palitha Konara, Yoo Jung Ha, Frank McDonald, Yingqi Wei.
pages cm. — (Academy of International Business (UKI) series)
Includes bibliographical references and index.
1. International business enterprises – Developing countries. I. Title.
HD2932.K66 2015
338.89891724—dc23 2014049543
In Memory of Professor Alan Rugman
This book is dedicated to the memory of Alan Rugman,
who sadly died in July 2014. Alan, in addition to being one of the
most important contributors to the development of international
business theory, was a staunch supporter of the AIB UKI
Chapter. His support for the annual conference and the doctoral
symposium as well as his robust and humorous comments
on papers will be greatly missed. Alan’s substantial contribution to
international business theory will of course be an enduring legacy.
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Contents
List of Figures ix
List of Tables x
Foreword x i
Heinz Tüselmann
Notes on Contributors xiii
Introduction: The Rise of Multinationals from Emerging
Economies–Achieving a New Balance 1
Palitha Konara, Yoo Jung Ha, Frank McDonald and Yingqi Wei
Part I Keynotes and Panel Sessions
1 K eynotes 9
Peter Buckley and Jean-François Hennart
2 I mplications for International Business of Separatist Movements:
The Case of Scottish Independence 2 8
F rank McDonald, Frank Barry, Nigel Driffield, Brad MacKay,
Duncan Ross, Alan Rugman and Stephen Young
3 G eography and History Matter: International Business and
Economic Geography Perspectives on the Spatial and
Historical Development of Multinational Enterprises 51
Jennifer Jones, Peter Buckley, Liam Campling, Gary Cook,
Martin Hess and Rudolf R. Sinkovics
Part II Rise of EMNEs
4 I nstitutions and Investments by Emerging-Economy
Multinationals in Developed Economies: Solar PV Firms
and the Role of Political Authorities in Germany 83
Matthew M.C. Allen and Maria L. Allen
5 N either Western Nor Indian: HRM Policy in an Indian
Multinational 9 9
Vijay Pereira and Peter Scott
6 A gainst All Odds!: A Strategic Analysis of the Failures of
Three State-Owned Firms 115
Joseph Amankwah-Amoah
vii
viii Contents
Part III Performance/Survival in DMNEs in
Emerging Economies
7 S ubsidiary Survival of Multinational Enterprises in China:
An Analysis of Nordic Firms 1 35
Yi Wang and Jorma Larimo
8 C ontrol Position Strategy, Cultural Distance, Conflict Resolution
Strategies and Performance of International Joint Ventures 159
Huu Le Nguyen, Jorma Larimo and Tahir Ali
9 D eterminants of Foreign Firms’ Collective Action in Emerging
Economies: Evidence from India 176
Vikrant Shirodkar
Part IV Coming In and Going Out: Dynamic Interaction
between Foreign and Local Firms
10 Human Capital and Conflict Management in the
Entrepreneur-Venture Capitalist Relationship: The
Entrepreneur’s Perspective 1 95
Huan Zou, Grahame Boocock and Xiaohui Liu
11 I nternational Joint Ventures and Dynamic Co-learning
between MNEs and Local Firms 213
Jeong-Yang Park, Yoo Jung Ha and Yong Kyu Lew
12 I ndustry Factors Influencing International New Ventures’
Internationalisation Processes 2 26
Natasha Evers, Olli Kuivalainen and Svante Andersson
13 D o Foreign Ownership Modes Matter for FDI Spillovers? 2 43
Z iko Konwar, Frank McDonald, Chengang Wang and Yingqi Wei
Index 263
List of Figures
1.1 Optimal bundling in emerging market (e.g. China) 1 9
1.2 D ivision of the gains of selling the bundle in an emerging
market 2 1
1.3 O ptimal bundling in an emerging market: the international
oil industry 25
2.1 Top location determinants for greenfield investments:
percentage of projects citing investment motives 36
2.2 Scotland’s GDP per head as proportion of the UK’s, 1992–2011 44
3.1 A framework for global value chain analysis 53
3.2 Share of production cost of an Apple 4G iPhone
assembled in China 5 4
3.3 Authors in the GVC/GPN domain 5 7
3.4 Web of Science categories and published work 5 8
3.5 T wenty most cited GVC articles (out of 549) 6 0
3.6 Cluster-density view of 20 most cited GVC/GPN papers (themes) 61
3.7 Schematic of the migratory flows of tuna 6 5
6.1 A four-cell typology of ‘liability of domestic support’ 1 17
6.2 Domestic passenger traffic between Nigeria Airways and
other airlines 1 27
6.3 International passenger traffic between Nigeria Airways and
other airlines 1 28
7.1 G rowth in global FDIs in China from 1982 to 2010
(billions of US dollars) 136
7.2 N ordic FDIs in China from 1997 to 2012 (10,000 US dollars) 1 37
7.3 R esearch model of FDI subsidiary survival in China 1 46
11.1 D ynamic co-learning process in an IJV 219
12.1 C onceptual framework: industry factors influencing
INVs’ internationalisation process 231
ix
