IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i21p12234-d673103.html
   My bibliography  Save this article

Emerging Market Global Players: The Case of Brazil, China and South Africa

Author

Listed:
  • Henri Bezuidenhout

    (School of Economics, North-West University, Potchefstroom 2531, South Africa)

  • Gabriel Mhonyera

    (School of Economics, North-West University, Potchefstroom 2531, South Africa)

  • Jacob Van Rensburg

    (School of Economics, North-West University, Potchefstroom 2531, South Africa)

  • Hsia Hua Sheng

    (Department of Finance, Fundação Getulio Vargas, São Paulo 01000-000, Brazil)

  • José Marcos Carrera

    (Department of Finance, Fundação Getulio Vargas, São Paulo 01000-000, Brazil)

  • Xinjian Cui

    (Business School, Central University of Finance and Economics, Beijing 100081, China)

Abstract

A remarkable proliferation in the number of non-financial emerging multinational enterprises (NFEMNEs) and their share in the aggregate outward foreign direct investment (OFDI), along with the complexity of their FDI activities, has been witnessed over the past decades. Consequently, considerable interest has been generated within and among countries regarding the implications of these relatively new significant emerging global players for a range of economic and policy issues. In order to understand the gaps in knowledge pertaining to their identities, activities and impacts, this article employs the results of our 2015 emerging markets global players (EMGP) reports to make logical and informed insinuations about the structure and profile of NFEMNEs originating from China, Brazil and South Africa, the largest emerging markets in Asia, Latin America and Africa. We also synthesise and compare the outcomes of the 2015 EMGP reports of these OFDI home countries. We find the existence of a pattern in the ranked top NFEMNEs, from each country, in terms of industry sectors, regionalism and national bias. Furthermore, we establish that the respective NFEMNEs participated in international markets to pursue larger markets, natural resources and strategic assets and were not crowded out of their domestic markets by inward FDI.

Suggested Citation

  • Henri Bezuidenhout & Gabriel Mhonyera & Jacob Van Rensburg & Hsia Hua Sheng & José Marcos Carrera & Xinjian Cui, 2021. "Emerging Market Global Players: The Case of Brazil, China and South Africa," Sustainability, MDPI, vol. 13(21), pages 1-19, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:12234-:d:673103
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/21/12234/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/21/12234/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cohen, Stephen D., 2007. "Multinational Corporations and Foreign Direct Investment: Avoiding Simplicity, Embracing Complexity," OUP Catalogue, Oxford University Press, number 9780195179361.
    2. Peter J Buckley & L Jeremy Clegg & Hinrich Voss & Adam R Cross & Xin Liu & Ping Zheng, 2018. "A retrospective and agenda for future research on Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 4-23, January.
    3. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    4. Stavros Afionis & Lindsay C. Stringer & Nicola Favretto & Julia Tomei & Marcos S. Buckeridge, 2016. "Unpacking Brazil’s Leadership in the Global Biofuels Arena: Brazilian Ethanol Diplomacy in Africa," Global Environmental Politics, MIT Press, vol. 16(3), pages 127-150, August.
    5. Isabel Faeth, 2009. "Determinants Of Foreign Direct Investment – A Tale Of Nine Theoretical Models," Journal of Economic Surveys, Wiley Blackwell, vol. 23(1), pages 165-196, February.
    6. Klein, Saul & Wöcke, Albert, 2007. "Emerging global contenders: The South African experience," Journal of International Management, Elsevier, vol. 13(3), pages 319-337, September.
    7. De Beule, Filip & Duanmu, Jing-Lin, 2012. "Locational determinants of internationalization: A firm-level analysis of Chinese and Indian acquisitions," European Management Journal, Elsevier, vol. 30(3), pages 264-277.
    8. Marian Gorynia & Jan Nowak & Radoslaw Wolniak, 2007. "Motives and modes of FDI in Poland - An exploratory qualitative study," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 12(2), pages 132-151.
    9. Andrzej Cieslik & Giang Hien Tran, 2019. "Determinants of outward FDI from emerging economies," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 14(2), pages 209-231, June.
    10. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    11. Jaya Prakash Pradhan, 2010. "Strategic Asset-Seeking Activities of Emerging Multinationals: Perspectives of Foreign Acquisitions by Indian Pharmaceutical MNEs," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(2).
    12. Mike Wright & Igor Filatotchev & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    13. Dunning, John H., 2000. "The eclectic paradigm as an envelope for economic and business theories of MNE activity," International Business Review, Elsevier, vol. 9(2), pages 163-190, April.
    14. Peter J. Buckley, 2018. "Internalisation Theory and Outward Direct Investment by Emerging Market Multinationals," Management International Review, Springer, vol. 58(2), pages 195-224, April.
    15. Na Tan & Liang Chang & Rui Guo, 2021. "China’s outward foreign direct investment in energy sector: The role of “intimate” relations between countries," PLOS ONE, Public Library of Science, vol. 16(7), pages 1-21, July.
    16. Ricardo E. Buitrago R. & María Inés Barbosa Camargo, 2020. "Home Country Institutions and Outward FDI: An Exploratory Analysis in Emerging Economies," Sustainability, MDPI, vol. 12(23), pages 1-20, November.
    17. Michael A Witt & Arie Y Lewin, 2007. "Outward foreign direct investment as escape response to home country institutional constraints," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 579-594, July.
    18. repec:aer:wpaper:341 is not listed on IDEAS
    19. Kalotay, Kalman & Sulstarova, Astrit, 2010. "Modelling Russian outward FDI," Journal of International Management, Elsevier, vol. 16(2), pages 131-142, June.
    20. Peter J Buckley & L Jeremy Clegg & Adam R Cross & Xin Liu & Hinrich Voss & Ping Zheng, 2007. "The determinants of Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 499-518, July.
    21. Anil Mishra & Kevin Daly, 2007. "Effect of quality of institutions on outward foreign direct investment," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 16(2), pages 231-244.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Desogus, Marco & Casu, Elisa, 2022. "Chaos, granularity, and instability in economic systems of countries with emerging market economies: relationships between GDP growth rate and increasing internal inequality," MPRA Paper 115744, University Library of Munich, Germany, revised 2022.
    2. Xiaohua Yang & Cheng Liu & Jingling Lan, 2023. "Sustainable Technology Diffusion Manufacturing Outwards FDI Firms: Evidence from China Using Numerical Simulation Methods," Sustainability, MDPI, vol. 15(4), pages 1-23, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    2. Stoian, Carmen, 2013. "Extending Dunning's Investment Development Path: The role of home country institutional determinants in explaining outward foreign direct investment," International Business Review, Elsevier, vol. 22(3), pages 615-637.
    3. Yoo, Dasun & Reimann, Felix, 2017. "Internationalization of Developing Country Firms into Developed Countries: The Role of Host Country Knowledge-Based Assets and IPR Protection in FDI Location Choice," Journal of International Management, Elsevier, vol. 23(3), pages 242-254.
    4. Gilbert Kofi Adarkwah & Tine Petersen Malonæs, 2022. "Firm-specific advantages: a comprehensive review with a focus on emerging markets," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 539-585, June.
    5. Ben Kedia & Nolan Gaffney & Jack Clampit, 2012. "EMNEs and Knowledge-seeking FDI," Management International Review, Springer, vol. 52(2), pages 155-173, April.
    6. Wu, Jie & Wood, Geoffrey & Khan, Zaheer, 2021. "Top management team’s formal network and international expansion of Chinese firms: The moderating role of state ownership and political ties," International Business Review, Elsevier, vol. 30(3).
    7. Ramírez-Alesón, Marisa & Fleta-Asín, Jorge, 2016. "Is the Importance of Location Factors Different Depending on the Degree of Development of the Country?," Journal of International Management, Elsevier, vol. 22(1), pages 29-43.
    8. Mike W. Peng & Sergey Lebedev & Cristina O. Vlas & Joyce C. Wang & Jason S. Shay, 2018. "The growth of the firm in (and out of) emerging economies," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 829-857, December.
    9. Clegg, Jeremy & Lin, Hsin Mei & Voss, Hinrich & Yen, I-Fan & Shih, Yi Tien, 2016. "The OFDI patterns and firm performance of Chinese firms: The moderating effects of multinationality strategy and external factors," International Business Review, Elsevier, vol. 25(4), pages 971-985.
    10. Khanindra Ch. Das, 2013. "Home Country Determinants of Outward FDI from Developing Countries," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 7(1), pages 93-116, February.
    11. Sun, Sunny Li & Peng, Mike W. & Lee, Ruby P. & Tan, Weiqiang, 2015. "Institutional open access at home and outward internationalization," Journal of World Business, Elsevier, vol. 50(1), pages 234-246.
    12. Stoian, Carmen & Mohr, Alex, 2016. "Outward foreign direct investment from emerging economies: escaping home country regulative voids," International Business Review, Elsevier, vol. 25(5), pages 1124-1135.
    13. Yakob, Ramsin & Nakamura, H. Richard & Ström, Patrik, 2018. "Chinese foreign acquisitions aimed for strategic asset-creation and innovation upgrading: The case of Geely and Volvo Cars," Technovation, Elsevier, vol. 70, pages 59-72.
    14. Enderwick, Peter & Buckley, Peter J., 2021. "The role of springboarding in economic catch-up: A theoretical perspective," Journal of International Management, Elsevier, vol. 27(3).
    15. Filip Beule & Haiyan Zhang, 2022. "The impact of government policy on Chinese investment locations: An analysis of the Belt and Road policy announcement, host-country agreement, and sentiment," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 194-217, June.
    16. Ryan W. Tang & Chengli Shu & Kevin Z. Zhou, 2022. "State ownership of Chinese firms and their outward foreign direct investment: Political and economic contingencies," Asia Pacific Journal of Management, Springer, vol. 39(3), pages 1097-1123, September.
    17. Lisha He & Ronghao Jiang & Mia M. Bennett, 2020. "The rise of Chinese foreign direct investment in the United States: Disentangling investment strategies of state‐owned and private enterprises," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1562-1587, December.
    18. Betty Feng, Jing & Liu, Steven Y.H. & Anne Liu, Leigh, 2023. "Cognitive antecedents of EMNEs’ dynamic capabilities: A case study of global identity at Lenovo," Journal of Business Research, Elsevier, vol. 154(C).
    19. Ilan Alon & John Anderson & Ziaul Haque Munim & Alice Ho, 2018. "A review of the internationalization of Chinese enterprises," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 573-605, September.
    20. Ayden, Yuksel & Tatoglu, Ekrem & Glaister, Keith W. & Demirbag, Mehmet, 2021. "Exploring the internationalization strategies of Turkish multinationals: A multi-perspective analysis," Journal of International Management, Elsevier, vol. 27(3).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:12234-:d:673103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.