Impact case of the month: “Emerging multinational enterprises in Global Markets”

February 15 2024

In the global economy, emerging economies and their businesses are becoming increasingly important. Jianhong Zhang, Senior Researcher and Associate Professor of International Economics & Business at Nyenrode Business University, researched the opportunities, challenges, and consequences of this development.

“In 2008, we saw an increasing number of companies from emerging economies, investing in the global market. Examples are countries such as China and India,” Zhang says. “These companies were not only interested in investing in neighboring regions or other developing countries, but also in making investments in advanced economies, such as the European Union and the United States.” This trend could not be properly explained using traditional theories, so Zhang initiated a research project focusing on the success factors of these Emerging Market Multinational Enterprises (EMNEs). She also looked at the impact on the global economy and the perspective of stakeholders in the highly developed economies. In doing so, Zhang collaborated with colleagues from universities in both the Netherlands and other countries.

EMNE's success

The results of this study show that, in addition to the well-known factors mentioned in research on large international companies, laws and regulations are also very important. In addition, the liability or emergingness of EMNEs and the rapidly changing global political and business environment play a crucial role in understanding the success of EMNEs. Moreover, the research shows that these factors are complex rather than simple and dependent on certain conditions. The results also highlight the profound effect of media, personal experiences, beliefs, and ideologies on how Western stakeholders view emerging economies and their products. “This helps EMNEs understand the importance of strategic communication and cultural alignment in fostering positive relationships and market acceptance,” Zhang explained. “Our research confirms that emerging economies can provide significant benefits to host countries, especially through job creation and business opportunities.”

Multidisciplinary approach

Zhang integrated relevant theories from different disciplines to establish conceptual frameworks in her research. “The models used allowed us to better understand what happened in developments that could not be fully explained by traditional theories. This helped in discussing the differences between companies in emerging economies and those in developed economies.” Zhang also used a variety of methodologies in her quantitative research, including machine learning. Researchers applied this to a dataset consisting of 24,693 international acquisition deals. Based on this, they arrived at 59 factors that influence the success of such acquisitions by companies from emerging economies. This research led to a recent publication.

Numerous publications

That the research produced many interesting findings is evidenced by the 26 publications in scientific journals, the creation of a book, and a series of 16 monitor reports. In addition, the results also provide practical tools for companies and policymakers. For example, the monitor reports provided crucial information for investors and what helped them formulate investment strategies.

February 15 2024

An impact case includes a research portfolio around a central theme, focusing on the reach and impact of that research. The impact cases are easy to read for a broad audience, they demonstrate how Nyenrode is strengthening its connection to practice and how faculty members are finding practical solutions to relevant and current challenges in practice.

The impact cases are divided into the categories Leadership, Entrepreneurship, Stewardship, and Educational Innovation.

All  cases can be found here.

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