Charting Dynamic Trajectories: Multinational Enterprises in India

Business History Review, Forthcoming

38 Pages Posted: 28 Feb 2014

See all articles by Prithwiraj Choudhury

Prithwiraj Choudhury

Harvard University - Business School (HBS)

Tarun Khanna

Harvard University - Strategy Unit

Date Written: February 15, 2014

Abstract

In this article, we provide a synthesizing framework that we call the “dynamic trajectories” framework to study the evolution of multinational enterprises (MNEs) in host countries over time. We argue that a change in the policy environment in a host country presents an MNE with two sets of interrelated decisions. First, the MNE has to decide whether to enter, exit, or stay in the host country at the onset of each policy epoch; second, conditional on the first choice, it has to decide on its local responsiveness strategy at the onset of each policy epoch. India, which experienced two policy shocks — shutting down to MNEs in 1970 and then opening up again in 1991 — offers an interesting laboratory to explore the “dynamic trajectories” perspective. We collect and analyze a unique dataset of all entry and exit events for Fortune 50 and FTSE 50 firms (as of 1991) in India in the period from 1858 to 2013 and, additionally, we document detailed case studies of four MNEs (that arguably represent outliers in our sample).

Suggested Citation

Choudhury, Prithwiraj and Khanna, Tarun, Charting Dynamic Trajectories: Multinational Enterprises in India (February 15, 2014). Business History Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2401888

Prithwiraj Choudhury (Contact Author)

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Tarun Khanna

Harvard University - Strategy Unit ( email )

Harvard Business School
Boston, MA 02163
United States
617-495-6038 (Phone)
617-495-0355 (Fax)

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