Edited by Frank Horwitz and Pawan Budhwar
Chapter 5: International human resource management in multinational corporations from emerging economies
Global challengers are on the hinge of history, balanced between a remarkable past decade of growth and innovation and promising but unproven future. (BCG, 2011) The literature on multinational corporations (MNCs) has so far concentrated heavily on MNCs from Western countries entering other advanced economies and/or developing economies (OECD, 2006). This is not surprising considering that until recently the international business was dominated by Western MNCs. While this is still the case, the emerging economies are causing structural changes in the global economic landscape with substantial economic growth now occurring in these economies. While it is clear that the domestic markets in the emerging economies are the future engines of growth as reflected in the inflow of foreign direct investment (FDI), what is less noticeable is that the emerging economies are also increasingly contributing more towards outward FDI and interestingly they are investing both in developed as well as developing markets, that is both South–North and South–South investment (Ramamurti and Singh, 2009). Correspondingly, the number of MNCs from emerging economies (hereafter referred to as EMNCs) is also on the increase. In 2011, not only were eight out of the top ten destinations for foreign direct investment (FDI) from the developing and transition economies, they also accounted for 30 per cent of global outward FDI flows (UNCTAD, 2012). In 2006, they conducted over 1,000 mergers and acquisitions (M & As) worth $128 billion (UNCTAD, 2007).
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