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Hello, I am Andrei Panibratov,
professor of strategic and international management at St. Petersburg State University, Russia.
My research and teaching concentrates on
internationalization of firms from emerging economies,
outward foreign direct investments,
FDI from Russia, and Russian multinationals.
Russian multinationals have shown the ambition and the ability to play a role in
the global market, and many now enjoy
international recognition among other multinational firms.
All of them have a large scope of operations,
employ a workforce around the globe and earn high profits abroad.
Some of them are mature and experienced, and
can be compared with global firms from advanced economies.
Others are younger, of a lesser size,
and have only recently started to internationalize.
Many Russian multinationals are state-owned enterprises, and therefore
better protected by the home government from international and even domestic competitors.
Compared to private firms, Russian state-owned multinationals often lack
two important conditions for international expansion:
the quality and speed of their decision-making, and operational flexibility and adaptation.
At the same time, when these companies expand abroad,
they often demonstrate results that are rarely achieved by other firms.
Today I will talk on the phenomenon of Russian multinationals, and
discuss the role of government in their international expansion.
Multinationals from emerging markets began international operations in the early 1980s, but
the significant increase in the scale and scope of their expansion only
took place after two decades of their accommodation in foreign countries and markets.
Strategies adopted by emerging multinationals have allowed them to
successfully enter, and to establish strong presence in, the international business arena.
These strategies are characterized by
a large diversity, and are often described as being 'highly
aggressive' and 'rapid', offering
a great diversity of explanations of these firms' strategies.
Emerging multinationals generated interest, and raised debate as to whether they are
unique species of multinational firms, and whether
conventional theories can explain their behavioral strategy.
Many additional debates have occurred regarding the uniqueness of
the emerging multinationals' behavior, and the logic behind their expansion strategy.
While speaking on the international expansion of EMNEs,
which stands for 'emerging multinational enterprises',
a few important issues should be taken on board.
Firstly, the great diversity in internationalization followed by these firms,
even when they originate from a similar institutional environment, which calls for the first question:
how do EMNEs internationalize, and why?
Secondly, the impact of home institutions on the international strategies of EMNEs.
These firms originate from countries with underdeveloped regulations,
missing financial infrastructures, political uncertainty, and deficits of information.
With this arises the second question:
to what extent and how are EMNEs' strategies shaped by their home country context?