Emerging Multinational Corporations: Theoretical and Conceptual Framework

Mustafa Sakr () and Andre Jordaan
Additional contact information
Mustafa Sakr: Department of Economics, University of Pretoria

No 201604, Working Papers from University of Pretoria, Department of Economics

Abstract: Given the looming significance of emerging multinational corporations, this article outlines the primary theoretical aspects pertaining to this growing phenomenon. The following four main aspects are covered: The concept of emerging multinational corporations, theories explaining their evolution, market penetration modes, and finally the types of such firms. Based on the motive of multinationality, it is proposed to classify the different theories into three groups, namely: Firm advantages (asset exploiting), host country advantages (asset seeking), and both firm and host country advantages. This article distinguishes between 10 different types of emerging multinational corporations, based on the timing and the motives for initiating the multinationality process, the relation between the headquarters and affiliates, and the geographical dispersion of foreign activities. Entry modes adopted by emerging multinational corporations vary significantly according to ownership, the nature of overseas’ operations, the control of parent firms over these activities, and the extent of externalising and internalising.

Keywords: emerging multinational corporations; foreign market entry modes; theories of emerging multinational corporations; types of emerging multinational corporations (search for similar items in EconPapers)
JEL-codes: F21 P45 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2016-01
New Economics Papers: this item is included in nep-bec, nep-cse and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.up.ac.za/media/shared/61/WP/wp_2016_04.zp77281.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:201604

Access Statistics for this paper

More papers in Working Papers from University of Pretoria, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Rangan Gupta ().