Template-type: ReDIF-Paper 1.0
Author-Name: Narula, Rajneesh
Author-Email: r.narula@reading.ac.uk
Author-Workplace-Name: Henley Business School, University of Reading 
Title: Do we need different frameworks to explain infant MNEs from developing 
	 countries? 
Abstract: Applying extant IB theory, I argue that initial firm 
	 internationalisation is shaped by the interdependence and dynamic 
	 interaction between its O assets and the L assets of its home location. 
	 Regardless of nationality, the initial O assets of an infant MNE tend to 
	 be constrained by the L assets available to them, rather than by their 
	 strategy. I also contrast the modus operandi of developing country (DC) 
	 infant MNEs with those from advanced economies, highlighting the 
	 similarities and differences. The O assets of DC MNEs are largely 
	 determined by home country influences. Advanced economy MNEs have a 
	 larger set of L assets to draw from, because a wider variety of non-home 
	 country influences exist. Strategy and host countries begin to play a 
	 greater role once MNEs have moved past the nascent stage. I also take a 
	 look at the changes due to globalization and how it has affected the 
	 propensity of firms to internationalise. I argue that successful firms 
	 (regardless of nationality) will increasingly explore 
	 internationalisation, but the basic pre-condition - that of possessing 
	 competitive O assets - remains the same. There is also no reason to 
	 believe that this is likely to happen disproportionately from the 
	 developing countries.
Classification-JEL: F23, L52, O14, O19
Keywords: FDI, MNEs, eclectic paradigm, developing countries, emerging economies,
	 markets, multinational enterprises
Series: UNU-MERIT Working Papers
Creation-Date: 2011
Number: 073
File-URL: http://www.merit.unu.edu/publications/wppdf/2011/wp2011-073.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2011073