Emerging Market Multinationals' Strategy Of OFDI:Theoretical Development And Empirical Test Based On IPM

Since the crisis in 2008,emerging markets had been focused by enterprises in developed countries,and the investment activities of emerging market enterprises(EMNEs)were also gradually active.The international process has difference between EMNES and developed market firms,EMNEs Participates in the international expansion of the global market by unique path and pattern of internationalization with no global monopoly advantage,which is a big challenge for the traditional monopoly advantage theory.Based on the combing of the previous research literature,this article summarized the basic line of EMNEs' foreign investment.And according to enterprises' heterogeneity including their capabilities and resources,this article proposed the basic framework for the foreign investment path of EMNEs.Then “cournot model” was introduced to prove that brand and technology would make EMNEs merge and acquire foreign firms especially the developed market firms.This paper analyzed EMNs' foreign investment path and mode through case study and empirical analysis and verified the theory of foreign investment framework proposed in this paper.We found that only cooperated with developed market enterprises could not obtain advanced technology in the home country,so EMNEs must improve the ability of R & D to obtain relative technical advantage and to improve the ability of competition in the world.When the market size owned by EMNEs is large enough,the Green-field Investment would be a suitable choice to help reducing the operation cost.Or the EMNEs would obtain the brand and technology by the way of merger and acquisition to get the global markets rapidly.At present,EMNs in the mass are in the stage of rapid acquisition of strategic assets.At last,the article suggested that EMNEs should choose the suitable path and mode to invest abroad according to their capabilities,linkage and resources.EMNEs should raise the self-research level,and do not merger and acquire foreign firms blindly.Then the government should coordinate macro policies of “coming-in” and “going global”,and guide the EMNEs investing abroad.