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International business theory suggests that multinational enterprises (MNEs) seek to internalise resources embedded in local firms to complement their own through inter-organisational relationships, yet little is known about whether and how these business linkages differ between foreign (F)MNEs and domestic (D)MNEs. This paper aims to explore the linkage differential between DMNEs and FMNEs operating in the same single-country contexts and to examine whether foreignness, regional origin and technological capability make a difference.

This study is based on a unique firm-level data set of 292 MNEs located in five advanced, small open economies (SMOPECs). This study analyses the benefit received – in the form of technical and organisational resources and knowledge – by DMNEs and FMNEs via backward, forward and collaborative linkages with local business partners.

Our research finds FMNEs benefit less from linkages than DMNEs; and FMNEs originating from outside the region especially so. However, the results also show technological capability mitigates this difference and is thus a game changer for FMNEs from outside the region.

This paper differentiates between FMNEs and DMNEs in their propensity to benefit from resources received from different local partners and explores the influence of regional origin and technological capability. Despite the advanced and internationally oriented nature of SMOPECs, DMNEs still gain more benefit, suggesting either liabilities of foreignness and outsidership persist, or FMNEs do not desire, need or nurture local linkages.

This study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional decisions regarding the vertical fine-slicing of value chain activities (whether performed internally or externally) and the consideration of resource-sharing decisions (integration or separation) for each value chain function.

The authors draw on primary data collected from two case study firms operating in the large emerging Chinese market: Volvo Construction Equipment AB and Epiroc AB. In-depth cases illustrate how foreign MNCs expand into new market segments and simultaneously target both the lower-priced mid-market and the premium segments in the Chinese mining and construction industry.

The results reveal that product diversification creates challenges for managers who must oversee new (vertical) value chains, often simultaneously. Beyond geography and modes of governance, managers must decide whether to integrate or separate value chain activities for the new product lines. The study identifies four main strategic choices for firms to address this complexity, focusing on the decision to internalise or externalise (i.e. within or across organisational boundaries) and integrate or separate value chain activities between different product lines.

This study builds upon the internalisation theory and recent international business contributions that focus on value chain configurations to explain MNCs’ product diversification as a growth strategy in a host emerging market. It also sheds light on the choice of conducting new activities in-house or externally and elucidates firms’ managerial decisions to operationally integrate or separate individual value chain activities. The study provides insights into the drivers explaining managerial decisions to configure value chain activities across product lines and contributes to the growing body of literature on MNC activities in emerging economies by highlighting that product diversification impacts entry mode diversity and resource sharing across units.

Emerging market multinational enterprises (EMNEs) have consolidated their global presence recently, challenging existing international business (IB) theories. One of their most significant characteristics has been the prevalence of strategic asset-seeking (SAS) mergers and acquisitions (M&As) targeting firms in developed countries. Such SAS M&As have been ascribed to the aim of acquiring or augmenting firm-specific advantages, rather than exploiting existing advantages. A literature review is needed to synthesize the growing number of academic studies and to contribute to ongoing theoretical developments on EMNEs' catch-up strategies.

The authors follow a standard systematic literature review approach. The authors collate academic studies on EMNEs' SAS M&As in developed markets published between 2000 and mid-2020, structuring the analysis using the logic of antecedent, process and performance outcomes.

The authors present recent research trends in terms of year, journal, theories and methods. The authors synthesize and analyze existing knowledge on EMNEs' SAS M&As and identify remaining gaps to suggest future research directions.

The review contributes by focusing on the key argument of current EMNE research – SAS M&As. By providing the first focused review on this topic, it provides a basis for further research on EMNEs' SAS M&As.

The purpose of this paper is to show how the nature of the activities conducted by multinational enterprises globally and the governance modes are changing. Essentially, multinational enterprises (MNEs) structure and organize their activities in a more complex, fragmented and geographically dispersed manner. In this paper, the authors suggest that the evolution of MNEs and the rising importance of global value chains (GVCs) require a refinement of FDI motivations rather than a drastic change in the existing categories. The authors begin with a historical overview of evolving firms’ international strategies and FDI motivations, before developing arguments to support the view that the fine slicing of economic activities on a global scale, and the combination of governance modalities ought to be integrated into the presentation of investment motivations. The discussion ends with implications for governments and policymaking.

This paper is a conceptual paper.

Key suggestions to refine the presentation of investment motivations are presented, together with policy recommendations.

This paper provides a novel approach to ways of refining investment motivations by integrating GVC considerations, and drawing policy implications from this process.

This exploratory research examines how corporate communications can influence stakeholder perceptions to enhance or detract from the city as a brand. It uses the UK city of Bradford as a case study and adopts theoretical concepts of product and corporate branding. Balmer's AC²ID test of corporate identity is applied to identify gaps in the City's official communications strategy, revealing conflicting messages between local government policy and different stakeholder groups. This analysis points to the need for positive visual evidence of change, such as an improved built environment in the city centre. The analysis may have value for policy‐makers in the UK and elsewhere who seek to improve community and stakeholder relationships. This research may also help to promote an honest approach towards branding cities as well as providing the potential for an enhanced brand value.

The purpose of this study is to provide a theoretical driven model, explaining the interaction between psychic distance and environment on increased (subsequent) resource commitment decisions made by firms in their internationalization process. Increasingly, contrary to the Uppsala internationalization process (IP) model, firms are engaging in direct investment, rather than exporting as an initial step into overseas markets. Yet, it remains unclear how psychic distance affects firms engaged in increased resource commitment, especially in the initial phase of their international expansion when uncertainty is higher.

Building theory by integrating two key theories of internationalisation (IP model and eclectic paradigm), the paper explains increased resource commitment. Comparing firm types, the study also fills the research gap of recognising multinational enterprises (MNEs) as heterogeneous in their internationalization experience. Psychic distance and environment are analysed across three groups of firms (born‐global, recent and older entrants) to observe the moderating effects of firm experience and related uncertainty. A model and propositions of the relationships between psychic distance and environment, providing an increased commitment perspective, are presented.

There are mixed responses to the three groups of firms for psychic distance factors (political, geographic, social, information and commercial and economic development); and environmental factors (near‐market effects and sunk costs). Surprisingly born‐global and recent entrants are less affected by psychic distance, and more influenced by external factors, but for different reasons, in making early increased resource commitment decisions in the host market, than are older entrants.

Firms need to consider the strategic objectives of the parent company, psychic distance, local environment and international experience when engaging in increase resource commitment in host economies.

The paper provides theoretical insights and practical implications for those involved in international business and marketing.

This paper aims to examine the effects of compatible characteristics between parent firms on the extent to which international joint ventures (IJVs) acquire marketing knowledge. Compatible organisational characteristics are a particularly important component for absorptive capacity in that it may play a pivotal role in extending the prior relevant knowledge base and promoting a favourable learning environment. A series of hypotheses based on the literature is tested, which suggests that: there is a close association between IJV size and the level of knowledge acquisition, and compatible characteristics between parents positively influence marketing knowledge acquisition in IJVs.

The data were obtained by a survey. Questionnaires were posted to the CEOs of IJVs in Korea. A total of 688 questionnaires were sent out and 128 were returned, giving a response rate of 18.6 per cent.

The paper finds that the marginal differences in mean values indicate that firm size does not significantly influence the extent of knowledge acquisition in IJVs. A series of regression analyses was undertaken and it was found that the impact of compatible organisational culture on knowledge acquisition was positive and significant.

There are some limitations to the study. First, the data used were collected from only one country. Second, only marketing skills were considered, leaving aside other important types of knowledge that can contribute to IJV operations. Third, the measurement used for the acquisition of marketing knowledge has some drawbacks, in that it is based on the perceptual judgements of key managers, without employing objective measurements. In addition, the relatively low response rate and the low number of responses from large firms are clearly further limitations.

The findings suggest that compatible culture should be a crucial partner selection criterion for both local and foreign firms.

Very few studies have analysed small and medium‐sized IJVs, and fewer have focused on marketing knowledge acquisition particularly in a dynamically energetic environment (South Korea in this case). The paper also contributes to the current literature by confirming the positive relationship between compatible organisational culture and marketing knowledge acquisition.