Abstract
Using the statistical data of international databases, this paper investigates evolution and structural changes in the current rankings of multinational enterprises from North-East Asia in 2000–2020. The authors aim to identify differences and similarities in the internationalization strategies and core competences of multinational enterprises from the region. The research outcomes clearly demonstrate that the role of North-East Asia in global outward foreign direct investment is expanding and multinational enterprises from this region, particularly from China, become more mature. While rapid increase in the number of Chinese multinational enterprises and their foreign expansion are causing major structural changes in international rankings, comparisons on transnationalism explicitly show that Japanese multinational enterprises and territories with small domestic markets, such as Hong Kong and Taiwan, have significantly higher levels of internationalization. The specific features of multinationals are pronounced in their original set of core competences, stages, methods and global context of internationalization. Nevertheless, there are similarities among these multinationals, such as their reliance on country-specific advantages comprised of comparative advantages and government-created advantages; centralized corporate structures built on strong connections with the government and personal and social informal networks; and relatively strong regional supply chains reflecting the high level of complementarity among almost all countries of the region. The research findings also highlight the fact that many emerging multinationals from the region have successfully nurtured their original firm-specific advantages. Further success of MNEs from NEA shall depend on their capabilities to cope with new challenges of the global context of their internationalization, namely, post-pandemic recovery, raising economic nationalism that gradually causing the disruption of conventional global value chains and the sustainability agenda of the world economy.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Buckley, P. J. (2018). Internationalisation Theory and Outward Direct Investment by Emerging Market Multinationals, Management International Review, 58, 195-224. DOI: https://doi.org/https://doi.org/10.1007/s11575-017-0320-4.
Fitzgerald, R. & Rowley, C. (2015). How Have Japanese Multinational Companies Changed? Competitiveness, Management and Subsidiaries, Asia Pacific Business Review, 21(3), 449-456, https://doi.org/10.1080/13602381.2015.1023493.
Fitzgerald, R. & Rowley, C. (2016). MNCs from Asia Pacific in the Global Economy: Examples and Lessons from Japan, Korea, China and India, Asia Pacific Business Review, 22(4), 641–646.
Gorshkov, V. (2018). Emerging Multinationals: Some Theoretical and Empirical Considerations, The Journal of Comparative Economic Studies, 13, 7–12.
Gorshkov, V. (2019). Foreign Entry of Asian Banks into the Russian Market, Kaichi International University Bulletin, 18, 67–86.
Iwashita, H. (2020). The Regional Nature of Japanese Firms: Antecedents and Consequences, Asia Pacific Business Review, 26(3), 265–285. https://doi.org/10.1080/13602381.2019.1703390.
Japan Foreign Trade Council (2019). SHOSHA: Creating Value Globally. Shosha Handbook. Retrieved from https://www.jftc.or.jp/english/research/handbook/pdf/201907.pdf (accessed 26.03.2021).
Kalotay, K. (2018). State-owned Multinationals: An Emerging Market Phenomenon? The Journal of Comparative Economic Studies, 13, 13–37.
Mathews J. (2017). Dragon Multinationals Powered by Linkage, Leverage and Learning: A review and development, Asia Pacific Journal of Management, 34, 769–775. https://doi.org/10.1007/s10490-017-9543-y.
McKinsey & Company. (2020). Using Digital Transformation to Thrive in Japan’s New Normal: An Urgent Imperative. Retrieved from https://www.mckinsey.com/jp/en/~/media/McKinsey/Locations/Asia/Japan/Our%20Work/Digital/Using%20digital%20transformation%20to%20thrive%20in%20Japans%20new%20normal_an%20urgent%20imperative_upd201223.pdf (accessed 11.02.2020).
Michailova, S. & Worm, V. (2003). Personal Networking in Russia and China: Blat and Guanxi, European Management Journal, 21(4), 509–519.
Tang, M. (2019). Tencent: The Political Economy of China’s Surging Internet Giant, New York: Routledge. https://doi.org/10.4324/9780429202896
Nakahara, Y. (2020). Structural Change in Taiwanese Manufacturing Foreign Direct Investment in the 21st Century. The Journal of Comparative Economic Studies, 15, 21–44.
Ozawa, T. (2014). Explaining the Rise of East Asian Multinationals: State-Industry Links, a Stages Model of Structural Change, and Japan as a Precedent Setter, Center on Japanese Economy and Business, Columbia University in the City of New York, Working Paper Series, 337, 1–28.
Panibratov, A. (2017). International Strategy of Emerging Market Firms: Absorbing Global Knowledge and Building Competitive Advantage, Abingdon, Oxon: Routledge.
Podoba, Z. (2021). Japan’s Outward FDI: The Role of Russia. Asia and Africa Today, 2, 15–23 (in Russian) DOI: https://doi.org/10.31857/S032150750012594-5.
Podoba, Z., & Lobareva, Yu. (2017). Assessment of Sustainable Development of Major Oil and Gas Transnational Corporations. Neftyanoe khozyaistvo (Oil Industry), 2, 22–25. https://doi.org/10.24887/0028-2448-2017-2-22-25.
Podoba Z., Titova A. (2018). Chaebols as the Basis of Export-oriented Economy of Republic of Korea, Asia and Africa Today, 3, 33–40 (in Russian).
Ramamurti, R., Singh, J.V. eds. (2009). Emerging Multinationals in Emerging Markets, Cambridge University Press.
Ramamurti, R. (2020). Analytical Misunderstandings about Emerging-Market Multinationals. The Journal of Comparative Economic Studies, 15, 9–20.
Rowley, C., Ishikawa, J. & Oh, I (2019). Changing Facets of Leadership in East Asia: Globalization, Innovation and Performance in Japan, South Korea and China, Asia Pacific Business Review, 25(2), 161-172. https://doi.org/https://doi.org/10.1080/13602381.2018.1557425.
Williamson, P., Zeng, M. (2009). Chinese Multinationals: Emerging Multinationals through new gateways, in Ramamurti, R. & Sing, J.V. eds., Emerging Multinationals in Emerging Markets, Cambridge University Press, pp. 81-109.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Gorshkov, V., Podoba, Z. (2022). Internationalization of Multinational Entreprises from North-East Asia. In: Haba, K., Canavero, A., Mizobata, S. (eds) 100 Years of World Wars and Post-War Regional Collaboration. Springer, Singapore. https://doi.org/10.1007/978-981-16-9970-2_21
Download citation
DOI: https://doi.org/10.1007/978-981-16-9970-2_21
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-16-9969-6
Online ISBN: 978-981-16-9970-2
eBook Packages: HistoryHistory (R0)