The Co-Evolution of Pro-Market Reforms and Emerging Market Multinationals

Cuervo-Cazurra, A. 2015. The co-evolution of pro-market reforms and emerging market multinationals. In Tihanyi, L., Banalieva, E., Devinney, T. M., and Pedersen, T. (Eds) Advances in International Management 28: Emerging Economies and Multinational Enterprises. Emerald.

Northeastern U. D’Amore-McKim School of Business Research Paper No. 2941952

18 Pages Posted: 5 Apr 2017

See all articles by Alvaro Cuervo-Cazurra

Alvaro Cuervo-Cazurra

Northeastern University - Department of International Business and Strategy

Date Written: January 25, 2015

Abstract

I study the relationship between pro-market reforms and the expansion of emerging market multinational companies (EMNCs). Extending institutional economics, I propose a co-evolutionary process, whereby pro-market reforms in emerging markets induce the transformation of domestic firms into EMNCs, and the global expansion of EMNCs in turn facilitates the deepening of pro-market reforms in the home country. Specifically, I first explain how pro-market reforms lead to the emergence of EMNCs via international competitiveness, upgrading needs and escape; I then explain how the global expansion of EMNCs leads to a deepening of pro-market reforms at home via learning, spillovers and lobbying. I complement these explanations with a discussion of contingencies at the firm (private vs. state, domestic vs. foreign firms), industry (global vs. local industries) and country (developing vs. transition countries) levels.

Keywords: pro-market reforms, emerging market multinationals, international business

JEL Classification: F23

Suggested Citation

Cuervo-Cazurra, Alvaro, The Co-Evolution of Pro-Market Reforms and Emerging Market Multinationals (January 25, 2015). Cuervo-Cazurra, A. 2015. The co-evolution of pro-market reforms and emerging market multinationals. In Tihanyi, L., Banalieva, E., Devinney, T. M., and Pedersen, T. (Eds) Advances in International Management 28: Emerging Economies and Multinational Enterprises. Emerald.; Northeastern U. D’Amore-McKim School of Business Research Paper No. 2941952. Available at SSRN: https://ssrn.com/abstract=2941952

Alvaro Cuervo-Cazurra (Contact Author)

Northeastern University - Department of International Business and Strategy ( email )

D'Amore-McKim School of Business
313 Hayden Hall, 360 Huntington Avenue
Boston, MA 02115
United States
16173736568 (Phone)
16173738628 (Fax)

HOME PAGE: http://cuervo-cazurra.com

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