Bhaumik, S.K., Driffield, N. and Zhou, Y. (2016) Country specific advantage, firm specific advantage and multinationality - Sources of competitive advantage in emerging markets: Evidence from the electronics industry in China. International Business Review, 25 (1, Part A). pp. 165-176. ISSN 0969-5931
Abstract
The extant literature on emerging market multinationals (EMNEs) suggest that they derive their advantages from country-specific advantages (CSAs) such as economies of scale, as opposed to traditional firm specific advantage (FSA) such as technology. We use firm level data from the Chinese electronics industry and an empirical methodology that has thus far not been used in the literature to provide clear empirical support for this proposition. Further, we demonstrate that not all emerging market firms can leverage CSAs equally and that EMNEs are better at exploiting CSAs than their non-MNE domestic counterparts. We also demonstrate that developed country MNEs operating in emerging market economies are not as good as leveraging available CSAs as their EMNE competitors, arguably on account of liability of foreignness. Our results have implications for outward investment by emerging market firms as well as for the ability of developed country MNEs to significantly benefit from efficiency-seeking FDI in emerging market economies.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2015 Elsevier Ltd. All rights reserved. This is an author produced version of a paper subsequently published in International Business Review. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/) |
Keywords: | Competitive advantage; Emerging market MNES; Internationalisation; Productivity |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 29 Jan 2015 09:58 |
Last Modified: | 13 Apr 2017 20:07 |
Published Version: | http://dx.doi.org/10.1016/j.ibusrev.2014.12.006 |
Status: | Published |
Publisher: | Elsevier |
Refereed: | Yes |
Identification Number: | 10.1016/j.ibusrev.2014.12.006 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:82851 |