Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- List of abbreviations
- List of contributors
- Acknowledgments
- Part I Introduction
- Part II Country Studies
- 5 Chinese multinationals: Emerging through new global gateways
- 6 Indian multinationals: Generic internationalization strategies
- 7 Russian multinationals: Natural resource champions
- 8 Brazilian multinationals: Surfing the waves of internationalization
- 9 South African multinationals: Building on a unique legacy
- 10 Mexican multinationals: Insights from CEMEX
- 11 Thai multinationals: Entering the big league
- 12 Israeli multinationals: Competing from a small open economy
- Part III Conclusions
- Index
- References
6 - Indian multinationals: Generic internationalization strategies
from Part II - Country Studies
Published online by Cambridge University Press: 03 July 2009
Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- List of abbreviations
- List of contributors
- Acknowledgments
- Part I Introduction
- Part II Country Studies
- 5 Chinese multinationals: Emerging through new global gateways
- 6 Indian multinationals: Generic internationalization strategies
- 7 Russian multinationals: Natural resource champions
- 8 Brazilian multinationals: Surfing the waves of internationalization
- 9 South African multinationals: Building on a unique legacy
- 10 Mexican multinationals: Insights from CEMEX
- 11 Thai multinationals: Entering the big league
- 12 Israeli multinationals: Competing from a small open economy
- Part III Conclusions
- Index
- References
Summary
Indian firms expanded outward in two waves, the first occurring in the 1970s and 1980s, and the second occurring after 1995, shortly after India had opened up to the global economy in 1991 following economic reforms. The second wave was not only bigger in terms of the scale and speed of outward FDI, but the firms involved used a broader range of strategies. One especially interesting feature was that in the second wave 60–70 percent of the outward FDI went “up-market” (i.e., to highly advanced countries), unlike the first wave in which almost the same proportion went “down-market” (i.e., to countries less developed than India; Lall, 1983). In addition, there was some evidence that in 2006 and the first half of 2007, Indian firms may have invested more abroad than foreign MNEs invested in India – a surprising result for a poor country, although the data underlying these claims need more careful sorting out (Dunning and Narula, 1996).
In this chapter, we try to get beneath these intriguing macro outcomes by looking at the underlying micro phenomena at the firm level. Among other questions, we ask: Which Indian firms were at the vanguard of internationalization, and why? What international competitive advantages did they enjoy, and why? How did they internationalize? Which firms directed their investment to the advanced countries, and why? And finally, what impact did Indian firms have on the structure and dynamics of the global industries in which they participated?
- Type
- Chapter
- Information
- Emerging Multinationals in Emerging Markets , pp. 110 - 166Publisher: Cambridge University PressPrint publication year: 2009
References
. 2006. India goes global: How cross-border acquisitions are powering growth. (Location unspecified.)
2001. The rise of ‘the rest’. Challenges to the West from late-industrializing economies. Oxford UK: Oxford University Press.CrossRefGoogle Scholar
and . 2003. Beyond late development: Taiwan's upgrading policies. Cambridge, MA: MIT Press.Google Scholar
, , , and . 2001. The Indian software services industry. Research Policy, Vol. 30: 1267–1287.CrossRefGoogle Scholar
and . 2005. From underdogs to tigers: The rise and growth of the software industry in Brazil, China, India, Ireland, and Israel. Oxford: Oxford University Press.CrossRefGoogle Scholar
. 1999. India's software industry: The people dimension. IEEE Software, May/June: 62–65.CrossRefGoogle Scholar
and . 2000. Going global: Lessons from late movers. Harvard Business Review, March–April: 132–142.Google Scholar
and (eds.) 1994. Evolutionary dynamics of organizations. New York: Oxford University Press.Google Scholar
. 2006. The new global challengers: How 100 top companies from rapidly developing economies are changing the world. Boston, MA: Boston Consulting Grou.Google Scholar
and 2001. The future of the firm from an evolutionary perspective. In (ed.), The twenty-first century firm: changing economic organization in international perspective (pp. 161–185). Princeton, MA: Princeton University Press.Google Scholar
1991. Intraorganizational ecology of strategy making and organizational adaptation: Theory and field research. Organization Science Vol. 2, No. 3: 239–262.CrossRefGoogle Scholar
, , and . 1977. Tracing the multinationals: A sourcebook on U.S.-based enterprise. Cambridge, MA: Ballinger Publishing.Google Scholar
. 2006. Annual report 2005–2006: Creating a global enterprise.
and . 1996. The investment development path revisited: Some emerging issues. In and (eds.), Foreign direct investment and governments: Catalysts for economic restructuring (pp. 1–41). London and New York: Routledge.Google Scholar
Economist. 2007a. India's acquisitive companies: Maranding maharajahs. March 29.
Economist. 2007b. Multinationals: Globalization's offspring: How the new multinationals are remaking the old. April 4.
Economist. 2007c. Face value: Paper queen. June 9, p. 76.
. 2006. Current economic statistics and review for the week ended December 9, 2006 (50th weekly report for 2006. See www.epwrf.res.in/includefiles/THEMES%20LIST.HTM
Financial Express. 2007. FDI outflow may touch $ 35 billion study. June 18. Available online at www.financialexpress.com/news/FDI-outflow-may-touch-35-bn-study/140558
. 2007. Special report: The world's billionaires, March 8.
. 2006. Fortune's Global 500 list. July 24. Also available at http://money.cnn.com/magazines/fortune/global500/2006/full_list/
, Ministry of Commerce. 2007. Engineering goods emerge as largest contributor to India's merchandise exports. Press release, January 21. See http://demotemp279.nic.in/PressRelease/pressrelease_detail.asp?id=1929
and . 2005. The only sustainable edge: Why business strategy depends on productive friction and dynamic specialization. Boston, MA: Harvard Business School Press.Google Scholar
1996. India's software industry: State policy, liberalization, and industrial development. Thousand Oaks, CA: Sage Publications.Google Scholar
. 2006. Going global: Indian multinationals. Gurgaon, India: IBEF (October, according to website: www.indiabrandequityfund.org/artdisplay.aspx?cat_id=410&art_id=13725).
and . 2004. Dr. Reddy's Laboratories Ltd.: Chasing a daring vision. Lausanne, Switzerland: IMD, Case No. IMD216.Google Scholar
and . 2001. India's emerging competitive advantage in services. Academy of Management Executive, Vol. 15, No. 2: 20–31.Google Scholar
and . 2006. Emerging giants: Building world-class companies in developing countries. Harvard Business Review, Vol. 84, No. 10 (October): 60–69.Google Scholar
, , and . 2005. Mahindra & Mahindra: Creating scorpio. Boston, MA: HBS Publishing, Case No. 9705478.Google Scholar
, , and . 2005. Strategies that fit emerging economies. Harvard Business Review, Vol. 83, No. 6 (June): 63–76.Google Scholar
1977. Comment. In and (eds.), Multinationals from small countries. (pp. 157–165). Cambridge, MA: MIT Press.Google Scholar
. 1983. (ed.) The new multinationals: The spread of Third World enterprises. Chichester: John Wiley, IRM series on multinationals.Google Scholar
. 2006. 2005–2006 annual report. Mumbai, India.
2002. Dragon multinational: A new model for global growth. Oxford and New York: Oxford University Press.Google Scholar
and 2003. The use of evolutionary logic as an explanation generating engine for the study of strategic organization. Strategic Organization, Vol. 1, No. 4: 439–449.CrossRefGoogle Scholar
. 2007. I want to create wealth for my country: Tanti. June 2. www.samachar.com/showurl.php?rurl=http://news.moneycontrol.com/india/newsarticle/stocksnews.php?autono=284596&news=I%20want%20to%20create%20wealth%20for%20my%20country:%20Tanti&pubDate=Mon%2C + 04 + Jun + 2007 + 03%3A10%3A02 + GMT&keyword=money_biz
, 2007. Novelis 2007: A world leader in aluminum rolling and recycling. Company document, available at www.novelis.com/NR/rdonlyres/8C464163-EAC4-41BF-83C9-70A341136115/0/NOVsel17810_OverviewLO.pdf
2005. The fortune at the bottom of the pyramid: Eradicating poverty through profits. Philadelphia, PA: Wharton School Publishing.Google Scholar
2006. Internationally competitive clusters in developing countries: India's Information technology industry. In and (eds.), Multinational corporations and global poverty reduction (pp. 318–336). Cheltenham, UK: Edward Elgar.Google Scholar
. 2005. Annual report 2005: Vision beyond tomorrow.
. 2007. M&M targets SUV market in UK. Financial Times (June 5). Online at http://us.ft.com/ftgateway/superpage.ft?news_id=fto060520071902128992&page=1
and . 1991. Organizational environments and the multinational enterprise. Academy of Management Review, Vol. 16, No. 2 (April): 340–361.CrossRefGoogle Scholar
2006. Ecology, strategy, and organizational Change. In , and (eds.) Ecology and Strategy: Advances in Strategic Management, Vol. 23 (pp. 177–215). Oxford, UK: Elsevier/JAI.Google Scholar
2004. Kumar's big bets. Businessworld, September 27, 2004. Reproduced at www.adityabirla.com/media/press_reports/20040920_kumars_big_bets.htm#
. 2007. Annual report 2005–2006.
. 2006. World investment report, 2006. Geneva: United Nations.
1966. International investment and international trade in the product cycle. Quarterly Journal of Economics, No. 80: 190–207.CrossRefGoogle Scholar
. 1979. The product cycle hypothesis in a new international environment. Oxford Bulletin of Economics and Statistics Vol. 41, No. 4: 255–267 (November).CrossRefGoogle Scholar
. 2005. Annual report 2004. Copenhagen, Denmark (March 30, 2005).
. 2006. Annual report 2005. Copenhagen, Denmark. (March 29, 2006).
. 2007. Interim financial report: First quarter 2007. Copenhagen, Denmark (May 15, 2007).
1977. The internationalization of firms from developing countries. In and (eds.), Multinationals from small countries (pp. 133–156). Cambridge, MA: MIT Press.Google Scholar
1983. Third world multinationals: The rise of foreign investment from developing countries. Cambridge, MA: MIT Press.Google Scholar
. 2007. Suzlon Energy Ltd: Global leadership in green innovation. Mumbai, India: Yes Bank, Sustainability series.Google Scholar
- 40
- Cited by