استراتژی های MNE در اقتصادهای نوظهور
Abstract
1- Introduction
2- Corporate governance in emerging economies
3- Emerging economy firms and corporate governance
4- Papers in the special issue
5- Key points and implications for IB research
References
Abstract
We explore factors of convergence and divergence in corporate governance of emerging and developed market economies, focussing on the role of firm internationalisation. In particular, foreign investments by emerging economy firms led to upgrade of their governance capabilities. These firms also became advocates for home-country policy reforms that mandated the development of similar capabilities for local firms. We present a broad overview of the literature and propose an approach that considers the evolution of corporate governance, both at the national level and the firm level, with MNEs from both emerging market economies and developed economies as active actors in this process.
Introduction
We have witnessed widespread changes in national corporate governance systems (CGSs) across the world, and particularly across the emerging economies in the last 30 years. How have the competitive strategies of firms, particularly multinational ones, been both a factor in these changes and influenced by them? Since the fall of the Berlin Wall, global policies promoting the liberalization of trade and investment have prompted demands from multinational enterprises (MNEs) for the modernization and standardization of national corporate governance (CG). India and China illustrate these complex trends. In 1995 India joined the World Trade Organization followed by China in 2001. Both countries pledged adherence to new global standards protecting foreign trade and investment transactions. Subsequently, firms in both countries became substantial foreign direct investors and issued new crosslistings of tradeable securities on the foreign share markets. MNEs from both countries established new international joint ventures and alliances, and also entered into international franchising, licensing, and distribution agreements with local firms around the world. At the same time, Indian and Chinese MNE managers were exposed to new forms of organizational know-how about monitoring and overseeing – i.e., governing – firm activities. These managers shared senior managerial duties with foreign executives on international alliance steering committees and international joint ventures. They served on audit committees furnishing data to the Western accounting firms that assess the performance of foreign franchisees, licensees, and distributorships. That story has prompted this special issue. We sought papers that would shed new light on changing CGSs in emerging economies, and the role of MNEs as CGSs change agents. We started our work with a definition of corporate governance. Shleifer and Vishny (1997) proposed that corporate governance was about how a firm assures financiers of an adequate return on their capital. We followed Mahoney (2013) and others (e.g. Barney, 2018) to broaden the scope of relevant firm constituencies to go beyond those of shareholders and creditors. Corporate governance is how a firm assures all stakeholders of an adequate return on whatever they bring to the enterprise, whether it is capital from financiers, managerial skill from executives, labour from line workers, product inputs from outside suppliers, security from local governments, or patronage from customers. Typically, the assurances are country-specific, but for MNEs, corporate governance is not only national but transnational issue. With MNEs, we need to think about assurances that correspond to both (i) national corporate governance and (ii) the transnational space between countries.