The new multinational corporations from transition countries

In the last decade, outward foreign direct investment (FDI) from transition countries (TCs) has emerged. The new multinational corporations (MNCs) from TCs are quite different from the former “red multinationals” (1), we describe the emergence of these new MNCs (2) and then provide econometric testing of the relationship between outward FDI and the level of economic development in home country that fits with TCs (3).     

Russian Direct Investment Abroad: History, Motives, Finance, Control and Planning

On the basis of questioning 22 Russian MNCs, the author analyses motives of their FDI as well as the financial, control and planning aspects of their foreign affiliates' functioning. Analysis is supported by historical and statistical background of Russian outward investment. This revised version was published online in July 2006 with corrections to the Cover Date.     

Foreign Direct Investment from Emerging Markets to Africa: The HRM Context

In this article, we explore what determines the decisions of emerging‐market multinational corporations (MNCs) to invest in Africa and whether this is any different from their counterparts in mature markets, focusing on the HRM context. More specifically, we explore the effect of potential host‐country wages, local capabilities, and the relative rights of owners versus workers on foreign direct investment (FDI) decisions, as well as other relevant factors such as mineral resources and corruption. We found that emerging‐market MNCs were not deterred by relatively weak property owner rights (as indeed, was also the case for their counterparts from mature markets); hence, any weakening of countervailing worker rights is unlikely to unlock significant new FDI. However, emerging‐market MNCs were more likely to invest in low‐wage economies and did not appear to be concerned by local skills gaps; the latter would reflect the relative de facto ease with which even partially skilled expatriate labor can be imported into many African countries. At the same time, a reliance on low‐wage, unskilled labor, coupled with the extensive usage of expatriates, brings with it a wide range of challenges for the HR manager, which a firm committed to cost‐cutting may lack the capabilities to resolve. © 2014 Wiley Periodicals, Inc.     

Wealth Effects of International Investments and Agency Problems for Korean Multinational Firms

This paper recognizes the recent surge in cross‐border investments by MNCs from newly industrialized countries and investigates the wealth effects of FDI announcements by Korean firms, which are the leading FDI providers in Asia. The empirical results indicate that for Korean MNCs: 1) cross‐border investments increase shareholder wealth; and 2) they do not obtain the firm‐specific technological advantages over international competitors. The paper also presents evidence that cross‐border investments do not increase shareholder wealth for the 30 largest chaebol‐affiliates, and that shareholder wealth losses are greater when corporate ownership is concentrated, as suggested by Shleifer and Vishny (1997) and La Porta et al. (1998, 2000) .     

Institutions and Joint Ventures in the Mid dle East and North Af rica: The Case of Jor dan

Abstract

Many Mid dle East ern and North Af ri can (MENA) coun -tries are mak ing val iant ef forts to re form their eco nomic sys tems to boost growth and liv ing stan dards. Mul ti na tional Com panies (MNCs) are generally thought to have a ma jor part to play in help ing these coun tries to de velop. The prob lems caused by gov ern men tal sys tems that placed legal and bu reau cratic ob sta cles and pro hi bi tions in the way of For eign Direct In vest ment (FDI) ac tiv i ties are un der at tack in many coun tries. The World Bank (WB) and the In ter na tional Mon e tary Fund (IMF) in sist on the adop tion of busi ness-friendly pol i cies for those coun tries that seek their aid. More over, mem ber ship of the World Trade Or ga ni za tion (WTO) also re quires coun tries to re form their gov ern men tal sys tems. The prize at the end of the pain ful re form pro cess is higher growth of ten driven by FDI ac tiv i ties. In re cent years, FDI to de vel op ing and for mer com mu nist coun tries has con sid er ably in creased. How ever, some de vel -op ing coun tries (no ta bly, Af rica and large parts of the Mid dle East) have not bene fited to the same ex tent as many Asian and Cen tral and East Euro pean coun tries. More over, MNCs have fo cused on In ter na tional Joint Ven tures (IJVs) as the main means of en ter ing these coun tries. This form of en try may not be the best method to trans fer tech nol ogy and to ob tain the best re sults of the in ter ac tion be tween MNCs and host coun tries. This pa per seeks to ex plore this is sue by use of a qual i ta tive study of IJVs in Jor dan. The pa per uses a new in stitutional eco nomic framework that high lights the im por tance of in for mal in sti tu tional sys tems for the de cision on mode of en try. The re sults of the study in di cate that MNCs in Jordan would pre fer to use fully-owned sub sid iar ies, but the char ac ter is tics of the in for mal in sti tu tional sys tem in Jor dan re sults in high trans ac tion costs that can best be re duced by the use of IJVs. Thus al though Jor dan has un der gone sig nif i cant re form to her eco nomic sys tem, the prob lems caused by the na ture of in for mal in sti tu tional sys tems have lim ited the growth of what might have been more ben e fi cial FDI. [Ar ti cle cop ie s available for a fee from The Haworth Doc u ment De liv ery Ser vice     

MNCs in Central,Southern and Central Europe and the former Soviet Union: investment decisions and the regulation of employment

This article explores the relationship between the regulation of employment and the decisions of multinational corporations (MNCs) to invest in Central, Southern and Central Europe and the former Soviet Union. Building on La Porta et al.'s work on legal origin, and its assumptions as to the incompatibility of owner and worker rights, the World Bank's Doing Business reports held that countries with stronger protection for worker rights represented poor destinations for investors. However, is it the case that investors are really deterred by employee rights? Our study investigates actual trends in foreign direct investment (FDI) through an analysis of UNCTAD World Investment Reports. We find that the level of individual and collective rights and social security legislation is not significantly associated with FDI.     

Organizational leadership practices in MNCs: the effect of the HRs value as a competitive factor and the FDI structure

The main goal of the paper is to present the research results on the impact that the value ascribed to human resources (HRs) as a strategic competitive factor of a company and the structure of FDI may exert on the advancement level of organizational leadership practices (as one of the HRM subfunctions) in multinational companies (MNCs). The structure of FDI covered: legal form of the foreign entities, type of investment, i.e., brownfield vs. greenfield, and four indices, i.e., internationalization index (II), geographical spread index (GSI), country’s economic development index (EDC), and culture distance index (CDI). The research sample was composed of 200 headquarters of MNCs located in Poland. All in all, three variables seem to have the most visible impact on the activities in the area of organizational leadership development practices, i.e., ownership structure, centralization vs. decentralization practices and cultural distance. Less important, but identifiable influences come from the GS index, EDC index and the smallest one from II index.     

微观层面的对外直接投资与对外贸易关系研究

对外直接投资与对外贸易存在替代、互补或者互动的关系;从不同角度,会观察到对外直接投资与对外贸易不同的关系。     

跨国公司对外直接投资机会模糊综合评价研究

本文综合考虑公司实力和目标国区位优势,设计评价跨国公司对外直接投资机会的指标体系。采用二级模糊评价的方法,将该指标体系量化。分别针对不同的目标国进行评价,为确定最佳投资机会提供决策参考。     

Exploring the role of FDI in enhancing the entrepreneurial activity in Europe: a panel data analysis

This paper explores the impact of foreign direct investment (FDI) on the entrepreneurial activity in 16 European countries. By using Global Entrepreneurship Monitor (GEM) data, which enables the distinction necessity-driven vs. opportunity-driven entrepreneurs, we assess the influence of both inward and outward FDI on the entrepreneurial activity during the time span 2005–2012. We resort to a static, as well as to a dynamic panel data analysis. Our findings highlight the fact that the FDI has no clear influence on the total entrepreneurial activity, or on the established business ownership rate. Nevertheless, our results clearly state that both inward and outward FDI positively influences the necessity-driven entrepreneurs, while having a negative impact on the opportunity-driven entrepreneurs. The results prove to be robust regarding the use of a fixed and random effects panel model, two stages least square (2SLS) model, as well as the use of a system-Generalized Method of Moments (system-GMM) approach.