Rising power firms and FDI - The challenge of economic development


Rudolf R. Sinkovics * Mo Yamin


Call for Papers - Critical Perspectives on International Business
Journal -


About Critical Perspectives on International Business Journal (CPoIB)

Critical perspectives on international business (CPOIB) supports
critically reflexive discussion of the nature and impact of
international business activity from trans- and multi-disciplinary
perspectives, rather than within specific fields. The journal encourages
readers to engage with, and build upon, writings and activities from the
broader societal context that challenge the hegemony of global and
transnational corporations, of managerial orthodoxy and of dominant
academic discourse. 

About the special issue

Critical Perspectives on International Business invites the submission
of articles that address the theme "Rising power firms and FDI - The
challenge of economic development". Rising powers refers to countries
such as China, India and Brazil which are on a steep growth and
development trajectory and rising power firms refers to emergent and
leading firms from these countries with a clear strategic intent to
challenge western and dominant forms of economic organisation (e.g.
multinational enterprises (MNEs), lead firms in global value chains
(GVCs)) (Luo and Tung 2007). Recent deliberations in international
business pertaining to the impact of MNEs on economic development
suggest a revision of dominant firm strategies along the side of social
embeddedness, local relationship formation and social entrepreneurship
(Seelos and Mair 2005; Tasavori and Sinkovics 2011; Yamin and Sinkovics
2009). Social embeddedness denotes an emerging concept of the engagement
of firms in local economies and networks (Badry 2009), which extends
beyond the definition of business networks which focusses mostly on
direct suppliers and customers (Forsgren, Holm, and Johanson 2005). In
particular, social embeddedness affords a clear link to broader concepts
such as legitimacy of international business in emerging economies
(Gifford, Kestler, and Anand 2010; Reimann et al. 2012). London and Hart
(2004) offer examples of companies succeeding in less developed
countries by pursuing relationships with non-traditional partners,
co-inventing custom solutions, and building local capacity. They
highlight the importance of capabilities of social embeddedness as a way
for MNEs to perform effectively in less developed environments with
mutual benefits for themselves and the host economies. Brady (2009)
examines relational and structural network aspects and their influence
on the success of companies' Base of the Pyramid (BOP) strategies. 

Nevertheless, given the dominant strategic trajectories of most MNEs
from advanced economies a social embeddedness orientation entails
perhaps too radical a shift in their strategies (Zanfei 2005). In
contrast, rising power firms from emerging economies are arguably more
likely to exhibit higher levels of capabilities for social embeddedness
by default. As Amsden (2009) suggests, they typically have more
knowledge of the local business environment, and are better plugged into
relational and social networks. 

This may have significant implications for international business in
that patterns of South-South trade, FDI and other economic interactions
can promise greater degrees of development outcomes and will offer
products and techniques with an improved fit for customers and other

Manuscripts are solicited on topics addressing ...

This special issue invites conceptual and empirical research that sheds
greater light on the capabilities of rising power firms, their
engagement and social embeddedness in both their own environment and in
cross-border environments and their distinctive development impact of
specific firm strategies. Within this framework we are interested in
contributions that address one or more of the following issues: 

*         Is the growth of rising power firms based on highly
distinctive business models or are these just a replication of existing

*         Is there any empirical evidence that suggests traditional and
rising power firms exhibit different developmental impacts?

*         Studies exploring the nature of social or community
embeddedness of rising power firms - are there any lessons of this for
western multinationals?

*         Empirical studies that investigate the impact of rising power
firms on poverty reduction, in their own country and other markets.

*         Studies examining the involvement of rising power firms in
global value chains or global production networks with specific
reference to standards (labour, environment, products) or

*         Studies that address CSR practices and approaches in relation
to rising power firms. 

*         The role of innovation, technological upgrading and leveraging
on economic development.

*         Studies that focus on how social embeddedness of rising power
firms may foster innovation capabilities. 

Special Issue Editors

Rudolf R. Sinkovics, Manchester Business School,
<> , Email:
[log in to unmask]

Mo Yamin, Manchester Business School,
<> , Email:
[log in to unmask]

Submission information

*	All papers will be subjected to double-blind peer review. 
*	Author guidelines are available at 
*	Papers will be reviewed in accordance with CPoIB guidelines. 

*	Submissions to Critical perspectives on international business
are made using ScholarOne Manuscripts 
*	Submission deadline: 30th November 2012
*	Acceptance decision: 31st May 2013
*	Approximate date of publication: Early 2014 


Amsden, Alice H. (2009), "Does firm ownership matter? Poes vs. Foes in
the developing world," in Emerging multinationals in emerging markets,
Ravi Ramamurti and Jitendra V. Singh (Eds.). Cambridge: Cambridge
University Press, 64-77.

Badry, Dina (2009), Multinational companies in low-income markets: An
analysis of social embeddedness in southeast Asia Wiesbaden: Gabler

Forsgren, Mats, Ulf Holm, and Jan Johanson (2005), Managing the embedded
multinational: A business network view. Cheltenham: Edward Elgar.

Gifford, Blair, Andrew Kestler, and Sharmila Anand (2010), "Building
local legitimacy into corporate social responsibility: Gold mining firms
in developing nations," Journal of World Business, 45 (3), 304-311.

London, Ted and Stuart L. Hart (2004), "Reinventing strategies for
emerging markets: Beyond the transnational model," Journal of
International Business Studies, 35 (5), 350-370.

Luo, Yadong and Rosalie L. Tung (2007), "International expansion of
emerging market enterprises: A springboard perspective," Journal of
International Business Studies, 38 (4), 481-498.

Reimann, Felix, Matthias Ehrgott, Lutz Kaufmann, and Craig R. Carter
(2012), "Local stakeholders and local legitimacy: MNEs' social
strategies in emerging economies," Journal of International Management,
18 (1), 1-17.

Seelos, Christian and Johanna Mair (2005), "Social entrepreneurship:
Creating new business models to serve the poor," Business Horizons, 48
(3), 241-246.

Tasavori, Misagh and Rudolf R. Sinkovics (2011), "Socially
entrepreneurial behaviour of multinational companies: Are MNCs 'social
entrepreneurs'?," in Firm-level internationalisation, regionalism and
globalization, Elaine Hutson, Rudolf R. Sinkovics, and Jenny Berrill
(Eds.). Houndmills, Basingstoke, U.K.: Palgrave MacMillan, 397-411.

Yamin, Mo and Rudolf R. Sinkovics (2009), "Infrastructure or foreign
direct investment?: An examination of the implications of MNE strategy
for economic development," Journal of World Business, 44 (2), 144-157.

Zanfei, Antonello (2005), "Globalization at bay? Multinational growth
and technology spillover," Critical Perspectives on International
Business, 1 (1), 5-17.


Please contact the guest editors for further guidance:


Rudolf R. Sinkovics, Manchester Business School -
[log in to unmask]

Mo Yamin, Manchester Business School - [log in to unmask]



Best wishes.





Professor Joanne Roberts

Strategic Management and International Business Subject Group

Newcastle Business School

Northumbria University

City Campus East 1

Newcastle upon Tyne


United Kingdom

Tel: +44 (0) 191 243 7528

Mobile: +44 (0) 777 150 1121 

Email: [log in to unmask]


Co-founder and co-editor of critical perspectives on international

**Winner of Emerald's Best New Journal Award 2010**

Editor of Prometheus: Critical Studies in Innovation


Newcastle Business School - ranked in the Top 10  for Graduate Level
Employability, 'The Sunday Times Good University Guide 2012'



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