Pavida Pananond

The International Expansion Process of MNEs from Developing Countries: A Case Study of Thailand's CP Group

This paper reviews different streams of literature on Third World multinational enterprises (MNEs), highlighting the necessity to maintain a balance between exploiting existing resources and accumulating new competence. Using a case study research methodology, empirical evidence is presented on the international expansion process of the CP Group of Thailand. The paper attempts to explain the sequential growth and expansion of the CP Group into different technological and geographical areas. While existing resources feature prominently determining the direction and the success of expansion, the accumulation of new expertise becomes even more significant in the long run. The paper also suggests a variety of theoretical and empirical issues which may be relevant in the future inquiry on the internationalization process.

Motives for foreign direct investment: a view from emerging market multinationals

Purpose – The purpose of this paper explains how the framework on motives of foreign direct investment (FDI) needs to be rethought when analyzing emerging market multinational enterprises (EMNEs). It argues that the weak position of emerging market firms and their interdependent relationship with lead firms in global value chains (GVCs) modify the selection of internationalization motives. Design/methodology/approach – The arguments are illustrated through a critical review of the literature on FDI motives and a discussion on how the literature can be extended from looking through the lens of emerging market multinationals, particularly those with early development as suppliers in global value chains. Findings – The weak position of emerging market firms and their interdependent relationship with lead firms in global value chains modify the selection of internationalization motives on two aspects. First, internationalization decisions of EMNEs in GVCs are not undertaken in an independent manner. Rather, d...

The Competitiveness of the ASEAN Economies: Business Competitiveness and International Challenges

In an age of increased necessity for competitiveness of nations and at a time when the world economy is facing recession, this book explores the possible trajectory of ASEAN – arguably one of the most dynamic areas in the world – as a regional economic and political bloc. The expert contributors address the industrial competitiveness of ASEAN and analyse the role of MNEs against the background of the challenges of integration. They illustrate that regional integration will only be a success if ASEAN’s linkages are broadened with global partners through negotiations of Free Trade Agreements. The book concludes that although much still remains to be done, and many promises are still to be unveiled, ASEAN’s ‘coming of age’ is an historic milestone.

The Complementarity of Foreign and Domestic Investments by Emerging-Market Multinationals

We study the impact of foreign direct investment on domestic investment by emerging-market firms. This relationship underlies a key policy debate on whether and how home-country governments should support outward foreign direct investment. While some governments are strongly in favour of supporting their firms’ overseas expansion, many are hesitant as outward foreign investment is considered to replace domestic investment and thus harmful to the home economy. We argue that emerging-market firms’ foreign expansion complements rather than substitutes their domestic investment because foreign direct investment enables these firms to increase their efficiency and improve their value chain positioning. The ability to arbitrage different home and host countries’ comparative advantages improves the efficiency and sophistication of home operations, ultimately contributing to further domestic investment and growth.