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This paper considers the longer-term viability of the internationalization and success of Indian MNEs. We apply the 'dual economy' concept (Lewis 1954), to reconcile the contradictions of the typical emerging economy, where a 'modern' knowledge-intensive economy exists alongside a 'traditional' resource-intensive economy. Each type of economy generates firms with different types of ownership advantages, and hence different types of MNEs and internationalisation patterns. We also highlight the vulnerabilities of a growth-by-acquisitions approach. The potential for Indian MNEs to grow requires an understanding of India's dual economy and the constraints from the home country's location advantages, particularly those in its knowledge infrastructure

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  • Rajneesh Narula

    (Henley Business School, University of Reading)

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  • Rajneesh Narula, 2014. "This paper considers the longer-term viability of the internationalization and success of Indian MNEs. We apply the 'dual economy' concept (Lewis 1954), to reconcile the contradictions of the typical ," John H Dunning Centre for International Business Discussion Papers jhd-dp2014-04, Henley Business School, University of Reading.
    • Handle: RePEc:rdg:jhdxdp:jhd-dp2014-04
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    1. Alan M. Rugman & Alain Verbeke, 2005. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Chapters, in: Analysis of Multinational Strategic Management, chapter 8, pages 104-119, Edward Elgar Publishing.
    2. Narula R. & Prasad T., 2013. "The growth of outward FDI and the competitiveness : the case of India," MERIT Working Papers 2013-042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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