Perspectives on multinational enterprises in emerging economies

Multinational enterprises (MNEs) play a pivotal role in the development of many emerging economies. In consequence, they became the focus of scholarly research by economists and policy analysts. In contrast, international business scholars have been comparatively uninterested in analysing this role of MNEs. Yet they could make important contributions to these debates. First, studies taking the individual firms as starting point would enhance understanding of the interaction between MNEs and the local environment. Second, theories and research methodologies developed in international business research could provide new insights into the dynamics of MNEs in emerging economies. The objective of this paper is to motivate more international business scholars to engage in research on positive and negative spillovers from foreign direct investment (FDI) in emerging economy societies. To advance this research agenda, scholars need to analyse the specific activities and capabilities of the firms involved, and the impact of FDI on the broader social and environmental context. For management, this agenda raises the ethical question: To what extent ought businesses to care about their local stakeholders?