Foreign market selection by Russian MNEs – beyond a binary approach

Bibliographic Data

ID15539178
AuthorsOlga E Annushkina (0000-0002-3432-6661, Bocconi University, corresponding author), Renata Trinca Colonel (0000-0001-6835-4997, Bocconi University)
EditorsSnejina Michailova (0000-0003-3000-2931)
Year2013
Volume9
Issue1/2
Pages58-87
Publication date2013-02-27
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueCritical Perspectives on International Business (JOURNAL)
Journal identifiersISSN: 1742-2043 • E-ISSN: 1758-6062
PublisherEmerald Publishing Limited (PUBLISHER • GB)
DOI10.1108/17422041311299950
OpenAlexW2028554398
LanguageEN
Citations received2
References cited59

Purpose The purpose of this paper is to address the internationalization of Russian multinationals by critically challenging existing assumptions about “springboard” foreign market selection by emerging market firms. Design/methodology/approach The authors studied foreign market selection decisions for 497 international merger and acquisition (M&A) and joint venture (JV) deals completed by Russian multinational enterprises (MNEs) between 1997 and 2009. The statistical model tests the impact of the geographic, political and economic distances of the host country from Russia on Russian MNEs' foreign market selection decisions. Findings Contrary to existing assumptions, the host country's geographic closeness to Russia, and its being an ex‐USSR republic or a tax haven, positively affected the country's probability of attracting an M&A or JV deal by a Russian MNE, while the similar level of economic development did not significantly influence the MNEs' foreign market selection decisions. The patterns of significance among the explanatory variables vary for Russian MNEs operating in the natural resources industries. Research limitations/implications Further studies may extend the observation period, enlarge the database with Greenfield and export deals by Russian MNEs, and add cross‐country cultural distances to the explanatory variables. Practical implications Russian managers should consider the “distances” that might influence firms' foreign investment decisions. This paper also allows host country governments willing to formulate policies aimed at the attraction of Russian outward foreign direct investments to obtain a better understanding of Russian MNEs' international strategies. Originality/value One of the few quantitative studies on the topic, this research suggests that Russian MNEs choose their own means of foreign market selection, combining gradual and leapfrog approaches to internationalization

Business · Closeness · Economics · Emerging markets · Foreign direct investment · Industrial organization · International business · International trade · Internationalization · Multinational corporation · Originality · Political science · Corporate Finance and Governance · Global trade and economics · International Business and FDI · Finance

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