Special issue on rising power firms and FDI: the challenge of economic development

Citation

(2012), "Special issue on rising power firms and FDI: the challenge of economic development", Critical Perspectives on International Business, Vol. 8 No. 4. https://doi.org/10.1108/cpoib.2012.29008daa.001

Special issue on rising power firms and FDI: the challenge of economic development

Special issue on rising power firms and FDI: the challenge of economic development

Article Type: Call for papers From: critical perspectives on international business, Volume 8, Issue 4

Guest Editors: Rudolf R. Sinkovics and Mo Yamin

About critical perspectives on international business journal (CPOIB)

critical perspectives on international business (CPOIB) supports critically reflexive discussion of the nature and impact of international business activity from trans- and multi-disciplinary perspectives, rather than within specific fields. The journal encourages readers to engage with, and build upon, writings and activities from the broader societal context that challenge the hegemony of global and transnational corporations, of managerial orthodoxy and of dominant academic discourse.

About the special issue

critical perspectives on international business invites the submission of articles that address the theme ``Rising power firms and FDI: the challenge of economic development''. Rising powers refers to countries such as China, India and Brazil which are on a steep growth and development trajectory and rising power firms refers to emergent and leading firms from these countries with a clear strategic intent to challenge western and dominant forms of economic organization (e.g. multinational enterprises (MNEs), lead firms in global value chains (GVCs)) (Luo and Tung, 2007). Recent deliberations in international business pertaining to the impact of MNEs on economic development suggest a revision of dominant firm strategies along the side of social embeddedness, local relationship formation and social entrepreneurship (Seelos and Mair, 2005; Tasavori and Sinkovics, 2011; Yamin and Sinkovics, 2009). Social embeddedness denotes an emerging concept of the engagement of firms in local economies and networks (Badry, 2009), which extends beyond the definition of business networks which focusses mostly on direct suppliers and customers (Forsgren et al., 2005). In particular, social embeddedness affords a clear link to broader concepts such as legitimacy of international business in emerging economies (Gifford et al., 2010; Reimann et al., 2012). London and Hart (2004) offer examples of companies succeeding in less developed countries by pursuing relationships with non-traditional partners, co-inventing custom solutions, and building local capacity. They highlight the importance of capabilities of social embeddedness as a way for MNEs to perform effectively in less developed environments with mutual benefits for themselves and the host economies. Brady (2009) examines relational and structural network aspects and their influence on the success of companies' Base of the Pyramid (BOP) strategies.

Nevertheless, given the dominant strategic trajectories of most MNEs from advanced economies, a social embeddedness orientation entails perhaps too radical a shift in their strategies (Zanfei, 2005). In contrast, rising power firms from emerging economies are arguably more likely to exhibit higher levels of capabilities for social embeddedness by default. As Amsden (2009) suggests, they typically have more knowledge of the local business environment, and are better plugged into relational and social networks.

This may have significant implications for international business in that patterns of South-South trade, FDI and other economic interactions can promise greater degrees of development outcomes and will offer products and techniques with an improved fit for customers and other users.

Manuscripts are solicited on topics addressing . . .

This special issue invites conceptual and empirical research that sheds greater light on the capabilities of rising power firms, their engagement and social embeddedness in both their own environment and in cross-border environments and their distinctive development impact of specific firm strategies. Within this framework we are interested in contributions that address one or more of the following issues:

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  Is the growth of rising power firms based on highly distinctive business models or are these just a replication of existing ones?

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  Is there any empirical evidence that suggests traditional and rising power firms exhibit different developmental impacts?

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  Studies exploring the nature of social or community embeddedness of rising power firms – are there any lessons from this for western multinationals?

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  Empirical studies that investigate the impact of rising power firms on poverty reduction, in their own country and other markets.

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  Studies examining the involvement of rising power firms in global value chains or global production networks, with specific reference to standards (labour, environment, products) or ``double-standards''.

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  Studies that address CSR practices and approaches in relation to rising power firms.

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  The role of innovation, technological upgrading and leveraging on economic development.

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  Studies that focus on how social embeddedness of rising power firms may foster innovation capabilities.

Special Issue Editors

Rudolf R. SinkovicsManchester Business SchoolWeb site: www.personal.mbs.ac.uk/rsinkovics/E-mail: Rudolf.Sinkovics@manchester.ac.uk

Mo YaminManchester Business SchoolWeb site: www.personal.mbs.ac.uk/myamin/E-mail: Mo.Yamin@manchester.ac.uk

Submission information

.All papers will be subjected to double-blind peer review.

.Author guidelines are available at: www.emeraldinsight.com/cpoib.htm

.Papers will be reviewed in accordance with CPOIB guidelines.

.Submissions to critical perspectives on international business are made using ScholarOne Manuscripts http://mc.manuscriptcentral.com/cpoib

.Submission deadline: 30 November 2012

.Acceptance decision: 31 May 2013

.Approximate date of publication: Early 2014

References

Amsden, A.H. (2009), ``Does firm ownership matter? FOEs vs. POEs in the developing world'', in Ramamurti, R. and Singh, J.V. (Eds), Emerging Multinationals in Emerging Markets, Cambridge University Press, Cambridge, pp. 64-77.Badry, D. (2009), Multinational Companies in Low-income Markets:An Analysis of Social Eembeddedness in Southeast Asia, Gabler Verlag, Wiesbaden.Forsgren, M., Holm, U. and Johanson, J. (2005), Managing the Embedded Multinational: A Business Network view, Edward Elgar, Cheltenham.Gifford, B., Kestler, A. and Anand, S. (2010), ``Building local legitimacy into corporate social responsibility: gold mining firms in developing nations'', Journal of World Business, Vol. 45 No. 3, pp. 304-11.London, T. and Hart, S.L. (2004), ``Reinventing strategies for emerging markets: beyond the transnational model'', Journal of International Business Studies, No. 35 Vol. 5, pp. 350-70.Luo, Y. and Tung, R.L. (2007), ``International expansion of emerging market enterprises: a springboard perspective'', Journal of International Business Studies, Vol. 38 No. 4, pp. 481-98.Reimann, F., Ehrgott, M., Kaufmann, L. and Carter, C.R. (2012), ``Local stakeholders and local legitimacy: MNEs' social strategies in emerging economies'', Journal of International Management, Vol. 18 No. 1, pp. 1-17.Seelos, C. and Mair, J. (2005), ``Social entrepreneurship: creating new business models to serve the poor'', Business Horizons, Vol. 48 No. 3, pp. 241- 46.Tasavori, M. and Sinkovics, R.R. (2011), ``Socially entrepreneurial behaviour of multinational companies: are MNCs `social entrepreneurs'?'', in Hutson, E., Sinkovics, R.R. and Berrill, J. (Eds), Firm-level Internationalisation, Regionalism and Globalization, Palgrave MacMillan, Basingstoke, pp. 397-411.Yamin, Mo and Sinkovics, R.R. (2009), ``Infrastructure or foreign direct investment?: An examination of the implications of MNE strategy for economic development'', Journal of World Business, Vol. 44 No. 2, pp. 144-57.Zanfei, A. (2005), ``Globalization at bay? Multinational growth and technology spillover'', critical perspectives on international business, Vol. 1 No. 1, pp. 5-17.