1st Edition

The Multinational Enterprise in Developing Countries Local versus Global Logic

Edited By Rick Molz, Catalin Ratiu, Ali Taleb Copyright 2010
    240 Pages 7 B/W Illustrations
    by Routledge

    240 Pages 7 B/W Illustrations
    by Routledge

    A key distinctive feature of Multinational Enterprises (MNEs) as organizations resides in the fact that they span across borders. This exposes them to dissimilar and often unfamiliar social and economic conditions as they venture in foreign countries. MNEs from industrialized economies that are active in developing countries and emerging markets face particularly challenging hurdles due to both economic and institutional discrepancies between their home and host countries.

    This book focuses on the uneasy interaction between the traditional logics of developing countries and the economic logic of MNEs. The traditional logics of most developing countries are built around community-based legitimacy and an intuitive but concrete epistemology. Conversely, the economic logic of MNEs from developed economies is built around technical and economic legitimacy and an abstract intellectual epistemology. Unpacking the uneasy interactions between these two logics will help achieve MNEs’ objectives of competitiveness in developing countries as well as globally.

    The Montreal Local Global Research Group is a well recognized research group in formulating and researching local and global issues in strategic management from the perspective of integrating divergent dominant logics into the strategy conceptualization process, and this will be the first book to be dedicated to the study of the interaction between the traditional logic of developing country and the economic logic of Multinational Enterprise (MNE). The cultural diversity of the contributing authors and the multidisciplinary approach offers a fresh perspective from which to explore beneficial corporate and local strategies that promote long-term economic growth consistent with local traditional and cultural norms. This collection will be primarily of interest to scholars of international business, international development, and economics. Furthermore, this book is immediately relevant to decision makers in Multinational corporations, NGOs and political decision makers that mediate the interaction between local actors and corporate agents in developing and transitional economies.

    Preface Rick Molz, Cătălin Raţiu and Ali Taleb Introduction Rick Molz, Cătălin Raţiu and Ali Taleb Part 1: Local-Global View of Multinationals in Developing Countries 1. Organizational and Institutional Rationalities and Western Firms in Emerging Countries: Proposal for a Local/Global Analytical Model Sid Ahmed Soussi 2. Strategy Implementation in Emerging Countries: Three Theoretical Approaches Claude Marcotte, Sid Ahmed Soussi, Rick Molz, Mehdi Farashahi, Taïeb Hafsi Part 2: Theoretical Considerations 3. West Meets SouthEast: A Cultural Fit of Goal Setting Theory to the Filipino Workforce Pamela Lirio 4. Emergent global institutional logic in the multinational corporation Gwyneth Edwards 5. Political strategies of MNEs in emerging economies: A theoretical model Shoaib Ul-Haw and Mehdi Farashahi 6. Business groups and corporate governance in emerging markets Natalya Totskaya 7. Entrepreneurship, firm size and knowledge transfer to developing and emerging countries Claude Marcotte Part 3: Empirical Perspectives 8. A comparison of foreign acquisitions in the Brazilian Electricity Industry: What determines success? Marcos Bosquetti, Rick Molz and Taïeb Hafsi 9. Behaviour of MNEs in developing countries: Having a sense of the ‘good’ through ‘smart partnerships’ in Malaysia Rabia Naguib 10. Environment, strategy and leadership patterns as determinants of firm performance: The case of a developing country Taïeb Hafsi and Bernard Gauthier Part 4: Emerging Global Roles of Local Firms 11. Multinationals and corporate environmental strategies: Fostering subsidiary initiative Cătălin Raţiu and Rick Molz 12. Emerging multinationals from developing countries: Would their exposure to eclectic institutional conditions grant them unique comparative advantages? Ali Taleb Conclusion 13. The challenges of developing competitive advantage from local and the differential logics Rick Molz, Cǎtǎlin Raţiu and Ali Taleb


    Rick Molz is Professor of Management at Concordia University, Canada.

    Cătălin Raţiu is currently a researcher in the department of management at Concordia University, Canada.

    Ali Taleb is currently a researcher and lecturer of strategic management and international business at HEC Montréal, Canada.