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Strategies for Enhancing the Competitiveness of MNEs
Abstract
Globalization has dramatically changed the competitive landscape in many national markets. Dunning (1993) provided evidence that Foreign Direct Investment (FDI) had doubled and even tripled in the last fifteen years in Less-Developed Countries (LDCs), generating a tremendous impact on the economic development and welfare of these countries. Yet, less attention has been given to the role that domestic customers and domestic competitors play in shaping the strategic behaviour and performance of MNEs in the targeted markets and the strategies which need to be adopted to enhance the competitiveness of MNEs. Through grounded theory approach and in depth literature review, the chapter aims to examine the positioning of MNEs to extend existing perspectives and incorporating competitive interactions between the external environments, competitive strategy and in particular, evaluates the strategic positioning and competitive behaviour of MNEs.
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