The rise of multinational enterprises (MNEs) from emerging markets is topical, important and poses a number of questions and challenges that require considerable attention in the future from academia as well as business management. The recent takeovers of high-profile companies in developed or developing countries by non-European emerging-market MNEs (EMNEs) – such as Lenovo, Wanhua (China), Hindalco (India), CVRD (Brazil), Cemex (Mexico), Lukoil (Russia), etc. – as well as the greenfield or brownfield investments of emerging companies (such as Huawei, ZTE, Tata, Pepco, etc.) show a new trend where new kind of firms become major players globally. EMNEs have become important players in several regions around the globe, ranging from the least developed countries of Africa through the developing markets in Latin America and Asia to the developed countries of the United States or the European Union, including East Central European (ECE) countries.
EMNEs presence on the global level has resulted in numerous studies in the international literature but those research results barely cover EMNEs’ activities in the ECE region (in the East Central European EU member countries, including the Czech Republic, Hungary, Poland, Slovakia and Slovenia). The existing books typically focus on the investment activity of a single country or region (such as China or East Asia) but a comprehensive analysis is still missing in this regard. The novelty of this edited volume is that it aims at exploring EMNEs location determinants, strategies, activities and challenges in East Central Europe by discussing its anomalies to the traditional theories as well as to other types of MNEs in the ECE region. The authors focus on EMNEs not only from China but from other important emerging countries, too, such as Russia, India, South Korea, Taiwan, Turkey, Brazil or South Africa.
Author(s): Ágnes Szunomár
Series: Studies in Economic Transition
Edition: 1
Publisher: Palgrave Macmillan
Year: 2020
Language: English
Pages: 349
Preface
Acknowledgements
Contents
Notes on Contributors
List of Figures
List of Tables
Part I: Introduction
Chapter 1: Theories of Internationalization and Foreign Direct Investment: How to Explain FDI from Emerging MNEs?
1.1 Introduction
1.2 A Brief Overview of Traditional and New Theories
1.2.1 Traditional Theories
1.2.2 The Japanese School of FDI
1.2.3 New Theoretical Attempts
1.3 Driving Forces and Location Choices Behind the International Expansion Strategy of Emerging MNEs: Push and Pull Factors
1.4 The Book’s objectives
References
Chapter 2: Changing Trends of Foreign Direct Investments in East Central Europe
2.1 Introduction: Different Worlds
2.2 FDI in the Process of ECE Transition
2.3 FDI and GDP in Figures
2.4 ECE Countries in the Global Labor Division
2.5 Potential Future Scenarios
References
Part II: Emerging Multinationals from Asia
Chapter 3: Home and Host Country Determinants of Chinese Multinational Enterprises’ Investments into East Central Europe
3.1 Introduction
3.2 Driving Forces Behind the International Expansion Strategies of Chinese MNEs
3.2.1 Characteristics of Chinese FDI Globally
3.2.2 Push Factors and Public Policies Behind Chinese Outward FDI
3.3 Chinese Outward FDI in ECE
3.3.1 Characteristics and Major Trends of Chinese Outward FDI in ECE
3.3.2 Changing Patterns of Chinese MNEs’ Activities in ECE
3.4 Host Country Determinants of Chinese Outward FDI in the ECE Region
3.4.1 ECE Countries’ Structural and Institutional Pull Factors for Chinese MNEs
3.4.2 The Role of Political Relations in Attracting Chinese FDI to the ECE Region: Friendship Factor?
3.5 Conclusions
References
Chapter 4: Indian Companies’ Global Aspirations in East Central Europe
4.1 Introduction
4.2 Motivations for Internationalization
4.3 Indian Investment in Global Outlook
4.3.1 Technology Import
4.3.2 Export Intensity
4.3.3 Firms’ Size and Age
4.3.4 The Ownership Structure of the Foreign Affiliates
4.3.5 Sectoral Advantages in Advanced Markets
4.3.6 Fragmented Company Productivity and R&D Intensity
4.4 Host Country Factors
4.5 Indian Investment in Europe
4.5.1 Western Europe
4.5.2 Central and Eastern Europe
4.5.2.1 Access to Advanced Market
4.5.2.2 Intellectual Property Rights and Patent Law
4.5.2.3 Institutional Settings, Technological Clusters and R&D Hubs
4.5.2.4 ECE Comparative Advantage
4.5.2.5 Technology- and Asset-Seeking Investments in the Region
4.6 Final Remarks
References
Chapter 5: Outward Foreign Direct Investments from South Korea, Taiwan, and ASEAN in the V4 Countries
5.1 Introduction
5.2 Foreign Direct Investments of South Korea, Taiwan, and Selected ASEAN Countries
5.2.1 Outward Foreign Direct Investments from Developing Asia in a Global Context
5.2.2 Size and Geographical/Sectoral Distribution of Outward Foreign Direct Investments from South Korea, Taiwan, and Selected ASEAN Countries
5.2.2.1 South Korea
5.2.2.2 Taiwan
5.2.2.3 Malaysia
5.2.2.4 Thailand, Indonesia, and Vietnam
5.2.3 Motivations and Push Factors for Outward Foreign Direct Investments from South Korea, Taiwan, and Selected ASEAN Countries
5.3 Outward Foreign Direct Investments from South Korea, Taiwan, and Selected ASEAN Countries in Visegrád Countries
5.3.1 Outward Foreign Direct Investment from the Six Asian Countries in the EU
5.3.1.1 South Korea
5.3.1.2 Malaysia
5.3.1.3 Taiwan
5.3.1.4 Other ASEAN Investors (Thailand, Indonesia, and Vietnam)
5.3.2 Outward Foreign Direct Investment from the Six Asian Countries in Hungary, Slovakia, Poland, and the Czech Republic
5.3.3 Motivations and Pull Factors for South Korean, Taiwanese, and ASEAN MNEs in V4 Countries
5.3.3.1 Automotive Sector
5.3.3.2 Electronics Sector
5.4 Conclusions
References
Part III: Non-Asian Emerging Multinationals
Chapter 6: Russian Multinational Direct Investment in East Central European Countries
6.1 Introduction
6.1.1 The Historical Context of Russian OFDI and Multinationals
6.1.2 The Size and Geographical Distribution of Russian OFDI
6.1.2.1 The Role of the EU
6.1.3 Industrial Distribution of Russian OFDI
6.2 Push and Pull Factors Driving Russian OFDI
6.2.1 Push Factors
6.2.1.1 The Russian State’s Role in Promoting Foreign Expansion
6.2.2 Pull Factors
6.3 Patterns and Trends of Russian FDI and Multinationals in ECE Countries
6.3.1 Poland
6.3.2 Czechia
6.3.3 Hungary
6.3.4 Slovakia
6.3.5 Slovenia
6.4 Summary and Conclusions
References
Chapter 7: Turkish Investments in Central and Eastern Europe: Motivations and Experiences
7.1 Introduction
7.2 Turkish Economic Policy and Outward Investments
7.2.1 Turkish OFDI
7.2.1.1 History and State Policy
7.2.1.2 OFDI in Statistics
7.3 Motivations of TMNEs for Investing Abroad
7.3.1 TMNE Case studies
7.3.2 Political Incentives: New Foreign Policy Doctrine and EU Relations
7.4 Eastern Europe and the Turkish OFDI
7.4.1 TMNEs in the CEE Region
7.4.1.1 Poland
7.4.1.2 Hungary
7.4.1.3 Slovakia
7.4.1.4 Czech Republic
7.4.1.5 Slovenia
7.5 Pull Factors of CEE for TMNEs
7.5.1 Institutional Factors
7.6 Conclusions
References
Chapter 8: Motivations of Brazilian Firms to Invest in East Central Europe: Specific Home-Country Advantages and Some Host-Country Specificities Dominate
8.1 Introduction
8.2 BMNEs Going Global—A Historical and Comparative Perspective
8.2.1 Size Does Not Matter a Lot if Looking at the Internationalization of Brazilian Companies
8.2.2 Extractive Industries Are Leading the Way
8.2.3 Europe (but Not the ECE) as an Emerging Destination to Host Brazilian OFDI
8.2.4 Brazilian Investments in the ECE Region
8.3 Drivers of Internationalization
8.3.1 Historical Driving Forces
8.3.2 Current Driving Forces of Internationalization of BMNEs
8.3.3 Internationalization as a State-Led Process: Public Policies to Promote OFDI of BMNEs
8.4 Pull Factors: Incentives for Brazilian Companies to Invest in the ECE Region
8.4.1 Main Drivers of Brazilian OFDI: The Host-Country Perspective
8.4.2 ECE Region in Focus
8.5 Conclusions
References
Chapter 9: South Africa: A Re-emerging Player in Global Outward FDI and a New Investor in East Central Europe?
9.1 Introduction
9.2 The Economic and Social Legacy of the Apartheid Era
9.3 South Africa as a Capital Exporter
9.4 The Internationalisation of South African MNEs
9.4.1 Main Strategies and Motivations of South African Outward FDI
9.5 Geographical and Sectoral Distribution of South African Outward FDI
9.6 South African OFDI in Central and Eastern Europe
9.6.1 The Main Motivations of South African Investors in ECE
9.6.1.1 Negative and Positive Push Factors
9.6.1.2 Host Country’s Pull Factors
Political Pull Factors
Structural Macroeconomic Pull Factors
Institutional Pull Factors
9.6.2 The Sectoral Preference of South African Investors
9.6.2.1 Real Estate
9.6.2.2 Retail Trade and e-Commerce
9.6.2.3 Manufacturing
9.7 Summary
References
Chapter 10: Final Reflections: Emerging Market Multinational Enterprises in East Central Europe
Annex
Questionnaire
Index
