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Internalization theory and the performance of emerging-market multinational enterprises

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  • Buckley, Peter J.
  • Tian, Xiaowen

Abstract

Constrained by their peripheral position in the global factory system and underdeveloped institutions at home, emerging-market multinational enterprises (MNEs) are likely to achieve monopoly-based, rather than knowledge-based, financial gains from internationalization conditional on R&D. Emerging market MNEs need to engage in R&D to upgrade orchestration know-how within the global factory. This needs to be accompanied by the development of home-based enabling institutions. This article develops the argument based on internalization theory, and tests hypotheses against the experience of major emerging-market MNEs from 2004 to 2011.

Suggested Citation

  • Buckley, Peter J. & Tian, Xiaowen, 2017. "Internalization theory and the performance of emerging-market multinational enterprises," International Business Review, Elsevier, vol. 26(5), pages 976-990.
    • Handle: RePEc:eee:iburev:v:26:y:2017:i:5:p:976-990
    DOI: 10.1016/j.ibusrev.2017.03.005
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