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Globalization of Latecomer Asian Multinationals and Theory of Multinational Enterprise
Abstract
The fast globalization of latecomer multinationals from Asian emerging economies with impetus has appeared to challenge the established theories of Multinational Enterprise (MNE). This chapter reviews extant theories of MNE and provides areas of refinement and extension to these theories to reflect highly contextualized and unique internal and external conditions of these MNEs. In particular, this chapter provides an analysis of the key theoretical perspectives of MNE and highlights four areas that extend existing theories. These areas include country-of-origin effects, ownership advantages, learning processes, as well as global and industry context for internationalization. These areas of refinement are then illustrated by seven case studies of MNEs from mainland China and Taiwan in their accelerated internationalization and their focus on acquisitive growth strategy in terms of speed of internationalization, target countries, and mode of entry.
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