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Advancing research on the determinants of Indian MNEs: the role of sub-national institutions

Author

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  • Rishika Nayyar

Abstract

Purpose - The purpose of this paper is to provide directions for advancing the research on determinants of outward foreign direct investment (FDI) from India. Design/methodology/approach - The paper uses literature review as a method to identify a research gap in the literature on internationalization of Indian firms. Findings - The synthesis of the theoretical debate and empirical studies conducted in context of EMNEs, with a particular focus on India and preliminary examination of data on cross-border acquisitions as well as institutions in India lead us to argue for the consideration of institutions at sub-national level (Indian states) in examining the determinants of outward FDI from India. The paper also proposes a conceptual framework relating to the mechanism through which institutions at the state level in India affect the propensity of firms to invest overseas. Research limitations/implications - Since the propositions are not tested empirically, the paper does not provide conclusive results. Originality/value - In addition to providing the synthesis of the theoretical debate and empirical studies, paper is, to the best of author’s knowledge, the first one to present a conceptual framework relating institutions at sub-national level with the outward foreign direct investment from India.

Suggested Citation

  • Rishika Nayyar, 2018. "Advancing research on the determinants of Indian MNEs: the role of sub-national institutions," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 13(3), pages 536-556, July.
  • Handle: RePEc:eme:ijoemp:ijoem-11-2016-0304
    DOI: 10.1108/IJoEM-11-2016-0304
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    Cited by:

    1. Nuno Calheiros-Lobo & José Vasconcelos Ferreira & Manuel Au-Yong-Oliveira, 2023. "SME Internationalization and Export Performance: A Systematic Review with Bibliometric Analysis," Sustainability, MDPI, vol. 15(11), pages 1-36, May.
    2. Shirodkar, Vikrant & Nayyar, Rishika & Varma, Sumati, 2024. "Institutional fragility and internationalization of Indian firms: Moderating effects of inward FDI and linkages," Journal of World Business, Elsevier, vol. 59(3).

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