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Home country (in)stability and the locational portfolio construction of emerging market multinational enterprises
journal contribution
posted on 2023-06-10, 04:00 authored by John Da Silva LuizJohn Da Silva Luiz, Helena BarnardEmerging markets often experience instability due to rapid changes to the institutional environment, social changes like rapid urbanization, or even unrest. We argue that emerging market multinationals (EMNEs) manage such instability by constructing and changing locational portfolios, and qualitatively analyze six cases in South Africa over a period that included the entrenchment of Apartheid, increasing resistance to it, the immediate post-Apartheid era, and finally the period of state capture. The four periods of (in)stability – initial tenuous stability, extreme instability, comprehensive stability, and finally growing instability – differently affected EMNEs’ location choices. EMNEs went to proximate developing countries when the home country was relatively stable, but left for host countries in the developed world once the home country became unstable. Few EMNEs capitalized on their experience there once home-country stability returned, instead returning to emerging markets. These patterns are best explained by a portfolio logic that takes into account home-country environmental dynamism.
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Publication status
- Published
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- Published version
Journal
Journal of Business ResearchISSN
0148-2963Publisher
ElsevierExternal DOI
Volume
151Page range
17-32Department affiliated with
- Strategy and Marketing Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2022-06-23First Open Access (FOA) Date
2022-08-18First Compliant Deposit (FCD) Date
2022-06-19Usage metrics
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