Surender Munjal

Reverse dependency:a longitudinal case study investigation into headquarter-subsidiary relationship in the context of an emerging country

Abstract: This study provides a conceptual framework and typology to measure headquarters and subsidiary dependency on capabilities and resources. Using an in-depth longitudinal case study approach, it highlights a novel phenomenon called “reverse dependency,” which indicates that a headquarters dependency on its subsidiary is rising. This is an emerging phenomenon, probably related to increased globalization and convergence of world economies. The study offers implications for the theory of subsidiary entrepreneurship and location embeddedness.

Opportunities and challenges for multiple-embeddedness through mergers and acquisitions in emerging economies

Purpose – The purpose of this paper is to examine opportunities and challenges from multiple-embeddedness of developed countries multinational enterprises (DMNEs) in emerging economies. It further investigates the effect of global financial crisis on the DMNE’s embeddedness strategies. Design/methodology/approach – Utilising POLS regression on secondary data bases, such as World Bank Development Indicators, over two period, first, from 2003 to 2007 (pre global financial crisis period), and second, from 2008 to 2012 (post global financial crisis), this study models the advantages and challenges faced by DMNEs into emerging markets. Findings – Findings suggest that challenges in terms of institutional and cultural differences have decreased over time. This may be due to the DMNE’s experience of operating in emerging economies. Research limitations/implications – Since the global financial crisis is on-going, further changes in terms of opportunities and challenges are yet to be uncovered. Further investigat...

The role of local context in the cross-border acquisitions by emerging economy multinational enterprises

This paper explores the role of local context in cross-border acquisitions by emerging economy multinational enterprises (EMNEs). It argues that the importance of local context has remained despite the increased global integration of the world economy. Hypotheses are tested using data on Indian acquisitions hosted in 70 countries over an eight-year period. Results, which are consistent across number and value of cross-border acquisitions, show that the local context in host countries offers contrasting benefits. Emerging economy multinational enterprises exploited these benefits by embedding in host countries through acquisitions. The acquisition strategy is conventional in the motives underpinning internationalization, but novel in its geographical clustering of host countries, and idiosyncratic owing to the EMNEs ability to draw on home country embeddedness. The paper develops theoretical implications and extends the concept of embeddedness, treating it as a series of internalization or quasi-internalization decisions across a variety of local contexts by multinationals.

Country Linkages and Firm Internationalization: Indian MNEs within Economic-Political Alliances of Nations

The theory of alliances between nations has been primarily studied in the field of politics from the point of view of defence and foreign policy whereas the economic theory of alliances is widely studied in the context of public goods (Olsen and Zeckhauser, 1966). However, the role of inter-country alliances in promoting economic development, trade or investment has attracted less interest. This chapter builds on the economic theory of alliances to argue that economic-political alliances between nations, such as the Commonwealth grouping, contribute to promoting foreign direct investment (FDI).

Exploring the Connection Between Human Capital and Innovation in the Globalising World

Taking an impetus from the fact that multinational enterprises around the world are increasingly investing in human capital to boost innovation this introductory chapter explores the connection between human capital and innovation in the globalising world. It argues that the whole ecosystem of innovation encompasses through different levels of human capital analysis. It introduces eight excellent chapters, authored by a range of budding to mature scholars, that explore this relationship between human capital and innovation at manager, firm, industry and country levels.

A perspective on multinational enterprise’s national identity dilemma

ABSTRACT This conceptual paper identifies gaps and contributes to the literature on ‘identity’ dilemmas faced by multinational enterprises operating in a globalised world. Various characteristics and business strategies of multinational enterprises are delineated and analysed through the lens of social identity theory and international business concepts such as market and institutional logic. Our analysis, based on multiple cases, and derived from a variety of industries and countries, associates the identity dilemma to informed business strategy. Our findings suggest that while multinational enterprises face identity dilemmas that they sometimes use to their advantage, it also poses several challenges. Through our conceptualisation, we derive five distinct propositions to shape future research directions.