Emerging Market Multinationals and Europe (eBook)

Preface 5
Contents 7
Contributors 9
Introduction and Overview 11
1 A New Obscurity: Shifts in the Economic World Order 11
1.1 Changing Global Context 11
1.2 Towards a Multilevel View 13
1.3 Challenging International Business 15
1.4 Introducing Sustainability 16
2 Challenges and Strategies of Emerging Market Multinationals in Europe: Key Ideas and Findings 18
2.1 Empirical Overview and Theoretical Perspectives 18
2.2 Politics and Power in Emerging Market Multinationals 19
2.3 Sustainability and Emerging Market Multinationals 21
2.4 Changing Global Labor Conditions 23
2.5 Regional Expansion Strategies in Europe 24
References 26
Part I: Empirical Overview and Theoretical Perspectives 29
Globalisation After the Financial Crisis: Structural Change and Emerging Market Multinationals 30
1 Introduction 30
2 Patterns and Consequences of Globalisation 31
3 A Crisis of Globalisation? 36
4 Emerging Market Multinationals in the New Global Economy 38
5 Conclusions 42
References 43
Why Are Emerging Market Multinationals Different? Challenges of a New Version of State Capitalism 46
1 Introduction 46
2 State Support Measures for Large Companies in Emerging Markets 47
2.1 Corporate Finance: State Subsidies 48
2.2 Corporate Governance: State Ownership and State Control 49
2.3 Industrial Relations: Tolerance of a Selective Implementation of Protection Rights 49
2.4 Education and Training: Provision of a Large Volume of Highly Qualified Labor 50
2.5 Innovation Transfer: Selective Protection of Intellectual Property Rights and Support of National Champions 50
2.6 Interim Conclusion 51
3 State Support of Multinational Corporations in International Politics 52
3.1 Support of Outward Foreign Direct Investment 52
3.2 State Support for Access to Natural Resources in Other Countries 52
3.3 Negotiation of Bilateral and Regional Trade and Investment Agreements 53
3.4 Representation of the Preferences of Domestic Multinationals in International Institutions 53
3.5 Support Thorough Selective Implementation of Global Norms 54
4 Conclusion and Implications 55
References 55
Emerging Market Multinationals and European Economic Developments 58
1 Introduction 58
2 Historically Changing Global FDI Patterns and Europe 58
3 Theoretical Perspectives on FDI 61
3.1 Neoclassical Mainstream Perspectives 61
3.2 Alternative Views 63
3.2.1 Critical Political Economy Perspectives 64
3.2.2 Post-Keynesian Perspectives 65
4 Conclusions 67
References 68
Part II: Politics and Power in Emerging Market Multinationals 70
Structures and Decisions in Emerging Market Multinational Corporations 71
1 Introduction 71
2 Regional Headquarters 73
3 Regions Matter 74
4 Power and Micro-politics 76
4.1 Strategy Games 77
4.2 Transmission Games 79
4.3 Operation Games 80
5 Establishing Regional Headquarters: Two Case Studies 82
5.1 Internal Growth 83
5.2 Mergers and Acquisitions 84
6 Conclusion 86
References 86
How Regional Are Regional Headquarters? The ``Latinization´´ of Control in European Structures of a Brazilian MNC 90
1 Introduction 90
2 The Role of Regional Headquarters in MNCs 91
3 Micro-political Perspective on Autonomy and Control in MNCs 92
4 Research Design and Methodology 95
4.1 Data Collection 96
5 BrazilCo´s Global HR Policies 97
5.1 BrazilCo in Switzerland 98
5.2 Structures of Control: The Swiss Subsidiary´s Relationship with the Brazilian HQ 99
5.3 The Position of Swiss Managers in BrazilCo 101
6 Discussion 103
References 106
Emerging Market Multinationals and Their Cross-Border Acquisitions: Global and Regional Challenges 109
1 Introduction 109
2 Methodology 110
3 Theoretical Perspectives 110
4 Incorporation of Signaling Theory 112
5 Signaling Matrix on EMNCs´ Acquisitions in AMs 113
5.1 Quadrant 1 114
5.1.1 Financial Resources and RandD Investments 114
5.1.2 Firm-Level Domestic and Affiliation Experience 114
5.2 Quadrant 2 115
5.2.1 Firm-Level International Experience 115
5.2.1.1 Affiliation 115
5.2.1.2 Firm Size 116
5.2.2 Corporate Governance 116
5.2.2.1 Large and Institutional Investors 116
5.2.2.2 Cross-Listing 117
5.3 Quadrant 3 117
5.3.1 Management 117
5.3.2 AM Acquisition Experience 118
5.3.2.1 Industry Relatedness 118
5.3.2.2 Deal Advisors 118
5.3.2.3 Past Acquisition Performance 118
5.3.3 Deal-Level Factors 119
5.3.3.1 Ownership Participation 119
5.3.3.2 Mode of Payment 119
5.3.3.3 Announcement Returns 120
5.3.3.4 Large and Public Firms 120
5.4 Quadrant 4 120
5.4.1 Staged Acquisitions 120
5.4.2 Integration Managers 121
5.4.3 Integration Items 121
6 Discussion and Conclusion 121
References 122
Part III: Sustainability and Emerging Market Multinationals 129
Defining Sustainability Criteria for Emerging Market Multinationals 130
1 Introduction 130
2 Defining Sustainability 131
2.1 Principle-Based Standards 132
2.2 Certificate-Based Standards 133
2.3 Reporting-Based Standards 133
2.4 Sustainability Indices 134
2.5 Concepts and Cultural Context 135
3 Global Responsibility 136
4 Sustainability and Location Policy 138
5 Conclusions and Recommendations 140
5.1 Early Evidence: The Company´s (Prior) Policy 140
5.2 Stay Attractive with Always-New Special Offers 141
5.3 Raise Sunk Cost: Investments, Trust, and Image 142
References 143
Sustainable Location Development: How Do Investment Promotion Agencies Go About Attracting Sustainable Foreign Direct Investme... 148
1 Sustainable Location Development in a Dynamic, Globalized Business Environment 148
2 Characteristics and Role of IPAs 152
3 The Sustainable Development Goals (SDGs) as a Selection Criterion for Sustainable Location Development 153
4 Top Performers in Achievement of the SDGs 155
5 Types of Investment and Their Impact on Sustainability 156
6 Investment Promotion Agencies and Sustainable Investment 158
7 Best Practice by IPAs in Relation to Sustainability 159
References 162
Sustainable Development Goals as a Guideline for Multinational Corporations 164
1 A New Goal-Oriented Approach to Sustainability Management 164
1.1 The Global Goals Are on the Agenda 164
1.2 Sustainability Management Evolved into Impact Management 165
1.3 Materiality as Core Criterion 167
2 Studies on the Use of SDGs by Multinationals 169
2.1 SDGs Among N100 and G250 Companies 169
2.2 SDGs in BRICS Countries 170
2.3 SDGs in Europe and North America 171
3 SDG Contributions of Global 100 172
3.1 Reports by Region 173
3.2 Quality of the Reports 173
3.3 Region-Specific Handling of the SDGs 174
3.3.1 USA 174
3.3.2 Europe 176
3.3.3 Asia 176
3.4 Summary: SDGs in Global 100 178
4 Conclusion 179
References 179
Part IV: Changing Global Labor Conditions 182
Impact of Chinese Multinationals on Global Labor Conditions and European Strategies 183
1 Introduction 183
2 Stylized Facts About Chinese OFDI in Europe 184
3 Economic Development Strategies and the Structure of Chinese Multinationals 185
4 Experiences with Chinese OFDI 189
5 Features of Regulation of OFDI in Europe 191
6 Summary and Outlook 194
References 195
Chinese Investments in Germany: Curse or Blessing? 198
1 Introduction and Presentation of the Problem 198
2 Chinese Investment in Germany and Europe Continues to Increase! 199
3 Is There Such a Thing as a `Chinese Investor´? 200
4 Operating on a Level Playing Field? 202
5 Politically Motivated Acquisitions? 203
6 A Focus on German Companies: Why? 204
7 On the Up or Selling Off? Chinese Investments from the Standpoint of Works Councils 205
8 Proactive Codetermination: Guidelines for Works Councils 206
9 Summary: Assessing Risks, Recognizing Opportunities 209
References 211
Part V: Regional Expansion Strategies in Europe 213
The Chinese Belt and Road Initiative and Its Implications for Europe 214
1 Introduction 214
2 The Belt and Road Initiative: Motives 216
3 The BRI in the Context of Other Chinese Strategies and Plans 218
4 The Dimensions of the BRI 219
5 Chinese Infrastructure Activities and Investments 223
6 The Role of the Chinese (State-Owned) Enterprises 225
7 Financing the BRI 226
8 Reciprocity of Investments 229
9 Europe´s Answer to the BRI 229
10 Conclusion 231
References 232
Multinationals from Latin America: An Analysis of Their Strategies of Expanding into Europe 237
1 Introduction 237
2 Theoretical Perspective and Empirical Overview 238
3 Country Case Studies 241
3.1 Brazil 241
3.2 Mexico 245
3.3 Chile 247
4 Conclusions 250
Appendix: List of Interviews 251
References 252
Multinationals from Russia and Turkey 254
1 Foreign Direct Investment (FDI) from Emerging Markets in Austria 254
2 Methodological Approach 256
3 Turkish Direct Investment in Austria 257
3.1 Turkish Companies´ Internationalization Strategies and Activities 258
3.2 Austria as a Business Location from the Perspective of Turkish Companies 261
4 Russian Direct Investment in Austria 261
4.1 Drivers of and Motives Behind Russian OFDI 265
4.2 Austria as a Business Location from the Perspective of Russian Companies 267
5 Russian and Turkish Direct Investment in Austria: Conclusions 267
References 271
Part VI: Conclusion 273
``Smart Public Location Policy´´: A Policy Statement Regarding Emerging Market Multinationals in Europe 274
1 Conclusions 274