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CONCLUSION

The new MNEs are the result of both imitation of established MNEs from the rich countries—which they have tried to emulate strategically and organizationally—and innovation in response to the peculiar characteristics of emerging and developing countries. The context in which their international expansion has taken place is also relevant. The new MNEs have emerged from countries with weak institutional environments and they are used to operate in countries with weak property-rights regimes, legal systems and so on.  Experience in the home country became especially valuable for the new MNEs because many countries with weak institutions are growing fast and they had developed the capabilities to compete in such challenging environments.

In addition, the new MNEs have flourished at a time of market globalization in which, despite local differences that still remain, global reach and global scale are crucial. The new MNEs have responded to this challenge by embarking into an accelerated international strategy based on external growth aimed at upgrading their capabilities and increasing their global market reach.. When implementing this strategy, the new MNEs took advantage of their market position in the home country and, ironically, their meager international presence allowed them to adopt a strategy and organizational structure that happens to be most appropriate to the current international environment in which emerging economies are growing very fast.

It is also important to note that the established MNEs from the rich countries have adopted some of the patterns of behavior of the new multinationals. Increased competitive pressure from the latter in industries such as cement, steel, electrical appliances, construction, banking, and

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