The viability of sustained growth by India's MNEs: India's dual economy and constraints from location assets

Rajneesh Narula

No 2014-062, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: This paper considers the longer-term viability of the internationalization and success of Indian MNEs. We apply the dual economy concept (Lewis, 1954), to reconcile the contradictions of the typical emerging economy, where a modern knowledge-intensive economy exists alongside a traditional resource-intensive economy. Each type of economy generates firms with different types of ownership advantages, and hence different types of MNEs and internationalization patterns. We also highlight the vulnerabilities of a growth-by-acquisitions approach. The potential for Indian MNEs to grow requires an understanding of Indias dual economy and the constraints from the home countrys location advantages, particularly those in its knowledge infrastructure.

Keywords: Multinational enterprises; MNEs; International firms; India; Emerging economies; Globalization; Dual economy; Assets (search for similar items in EconPapers)
JEL-codes: F23 F68 O32 (search for similar items in EconPapers)
Date: 2014-07-31
New Economics Papers: this item is included in nep-cse and nep-ino
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The Viability of Sustained Growth by India’s MNEs: India’s Dual Economy and Constraints from Location Assets (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2014062

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