The emerging markets have become a new growth opportunity for multinational corporations (MNCs). This could be attributed to the stagnation of growth within the developed markets and the emergence of strong economic growth within emerging markets. Yet, MNCs have varying levels of success due to overlooking of certain components lacking in emerging markets, such as infrastructure. Furthermore, the strategic planning and execution frameworks utilised by MNCs are based on assumptions that are valid for the developed markets, but not always for the emerging markets.The objective of this research was to determine if there is a link between the application of specific interrelated principles for defining and executing strategy, defined by Raina (2010), and the financial success of MNCs when entering the emerging markets.The research found that there is clear evidence that if certain of the principles are applied by MNCs when entering the emerging markets, there is evidence of greater financial success.The research concluded that the interrelated strategic principles are a valuable framework to deliver financial success for MNCs entering the emerging markets. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

This study assessed multinational corporations (MNCs) from developed markets with subsidiaries based in the emerging markets, to determine whether being based in a dynamic market influences the positive attention in terms of support and autonomy that these subsidiaries receive from headquarters. The purpose of the research was to expand on previous research conducted by Bouquet and Birkinshaw (2008) by surveying subsidiaries from emerging markets, and determining whether MNCs amend their attention strategy to subsidiaries based in emerging markets as a result of their limited understanding of the dynamics of the local business environment, or whether they maintain a standardised strategy for engaging all subsidiaries. 39 MNC subsidiaries from the emerging markets of Southern Africa, Latin America and the Middle East were surveyed via a web-based questionnaire, assessing various aspects of their business activities and local business environment to determine the type of positive attention which subsidiaries in these markets received from headquarters. The results indicated that the business environment within emerging markets is complex and requires alternative forms of assessment and involvement by headquarters, however overall subsidiaries based in emerging markets do not receive the support and autonomy from headquarters which is required to exploit local opportunities effectively. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Emerging markets have generated a lot of interest during the last couple of years; one reason for this is the economic growth potential of emerging markets and the opening up of new, interesting and potentially very lucrative groups of consumers. South Africa has a rich and diverse culture and shows signs of major socio-economic inequalities that are symptomatic of emerging economies. In South-Africa, department stores are significant to the emerging market female consumer market as they provide an extensive assortment of products and services. Department stores also offer a number of product categories and each provide an opportunity for indepth analysis. Work apparel is one such product category where more research is required in order to understand how these consumers evaluate product assortments. The purpose of this study was to explore and describe how the emerging market female consumer market (EFC) evaluates work wear product assortments in major South African department stores. The study makes a contribution to the field of retail, marketing and consumer behaviour in terms of a better understanding of the emerging market. It is also valuable in providing insight in consumers’ decision making processes towards work wear and preferences towards product assortment. The theoretical approach to the study included a literature review on the emerging market female consumer in South Africa, the South African retail environment and department stores, product assortment and product attributes. The cue diagnostic framework was used as a theoretical perspective for the study. This consumer-based approach was considered particularly appropriate for this study, in terms of the prioritization by a female consumer in an emerging market of product attributes when she is shopping for work wear and evaluating retailers’ product assortments. Combined with the literature review the cue diagnostic framework offered a theoretical basis for the study and provided an overall perspective on the specific phenomenon to be studied. An exploratory survey research design was employed together with a conjoint analysis method to provide insights into attribute ranking and level of influence of specific attributes. The sample consisted of 120 (n=120) female consumers living and working in Gauteng between the ages of 20 and 60, currently working with some sort of training, diploma or degree. Non-probability sampling methods were used, including purposive and snowball sampling. Respondents completed an online selfadministered questionnaire. To ensure an appropriate sample, the online questionnaire was also distributed in paper-based format.. An exploratory survey research design was employed together with a conjoint analysis method to provide insights into attribute ranking and level of influence of specific attributes. The sample consisted of 120 (n=120) female consumers living and working in Gauteng between the ages of 20 and 60, currently working with some sort of training, diploma or degree. Non-probability sampling methods were used, including purposive and snowball sampling. Respondents completed an online selfadministered questionnaire. To ensure an appropriate sample, the online questionnaire was also distributed in paper-based format. The results of the study indicated that the emerging market female consumer market has set ideas and preferences which appeal to them when purchasing work wear from department stores in South Africa. Certain product attributes were found to be more important than others while some were used in conjunction with other attributes. This combining of attributes helped to strengthen the importance of these attributes in the decision making process. The study adds value, knowledge and insight to the existing literature on consumer preferences in emerging markets and the apparel attributes that inform these preferences. This research will be useful for researchers as well as marketers who are interested in marketing campaigns, product assortment planning and retail settings. / Dissertation (MConsumer Science)--Universityof Pretoria, 2013. / gm2014 / Consumer Science / unrestricted

This study set out to explore the feasibility of using international based literature theory to formulate emerging market strategies for South African companies looking to expand into Africa’s emerging markets. The level of confidence with which South African companies can base their African emerging market strategies on the literature and studies done on international emerging market strategies is what will be explored in this study. The scope of this study includes methods of identifying emerging markets, optimal strategy choices for emerging markets, effective distribution channel selection methodologies and appropriate diversification options. To ensure the studies relevance across the broader spectrum of both South African companies as well as Africa’s emerging markets, the companies studied were selected for their collective representation. The research design employed for this study was qualitative and exploratory in nature. The findings based on the eight South African companies studied over the period point to the conclusion that the international theory contained in the literature is indeed relevant to both South African companies as well as Africa’s emerging markets and that it can be used effectively and confidently to formulate efficient and sustainable expansion strategies for these markets. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

Digitalization has reshaped the internationalization process of most firms, especially giving a new way for digital firms. Most of the previous research was based on the internationalization of developed countries, and the perspectives of emerging markets were relatively limited, and digital firms were also no exception. Exploring the uncharted territory of international business was the main motivation for writing this thesis, which aims to investigate motives and the internationalization path through the case study of four companies from China, the most representative emerging market. The findings show that the motivation of digital firms from emerging markets is influenced by internal factors and contextual factors such as institutional settings. Their choice of markets is determined by the social distance and digital level of the host countries, as well as market potential. They tend to actively choose to enter foreign markets by developing strategic local networks and striking a balance between replicating domestic strategies and localization. Besides, adapting to the local business environment and how to deal with digital security issues are challenging their performance in new markets.

The globalized economy has incentivized Swedish companies to invest abroad, especially in emerging markets. When expanding into foreign markets companies must evaluate the adhering risks associated with that particular market. It is paramount that companies account for the country risk in their investment analysis, as any miscalculations could have detrimental effects on a company. Evaluating country risk has proven to be difficult due to the sheer range of aspects that may affect an investment. This study examines the required return on equity of Swedish companies in six different markets, and compares it to three different evaluation models in order to determine what variables constituted any misevaluations. Our analysis indicated that a majority of Swedish companies require too high return on equity compared to the empirical results of the applied model. / Globaliseringens utveckling har lett till att svenska investeringar på utländska marknader och ”emerging markets” ökat under de senaste åren. När företag expanderar till utländska marknader tillkommer nya risker som måste beaktas. Således har landsrisken blivit en väsentlig del av värderingen. Landsrisken har visat sig varit svårvärderad då det finns ett antal aspekter som måste beaktas. En eventuell felbedömning kan ha förödande konsekvenser för ett företag. Denna studie undersöker svenska företags avkastningskrav på sex olika marknader gentemot tre värderingsmodeller, och vilka faktorer som påverkat en potentiell fel värdering. Studien visar att majoriteten av de svenska företagen har ett högre avkastningskrav än vad de tillämpade modellerna beräknat.

Cette thèse présente les mécanismes qui expliquent l'expansion internationale des entreprises multinationales des pays émergents vers des pays développés. Nous suggérons que les changements radicaux en termes de routines contribuent à expliquer l'expansion des entreprises des pays émergents. Nous soutenons que ce type de changement radical est uneétape indispensable pour que les entreprises des pays émergents puissent construire un avantage compétitif et entrer dans les économies avancées.De plus, nous nous intéressons aux antécédents du changement radical des routines de l’entreprise. En nous appuyant sur la théorie de l’échelon supérieur, nous suggérons que la composition des équipes de direction a un impact sur les changements radicaux de routines. Nous soutenons le fait que les dirigeants étrangers et ceux disposant d’une expérienceinternationale peuvent apporter de nouvelles connaissances et pratiques de gestion dans leurs organisations, ce qui contribue à les rendre plus compétitives. Toutefois, le succès sur le marché domestique peut empêcher l'entreprise d’évoluer à l’international. Les entreprises ont tendance à construire leurs capacités dans le prolongement de leur trajectoire passée ; une diversification conglomérale, des liens avec le gouvernement et une position de leader de marché peuvent empêcher les entreprises d'entrer dans les économies développées. / This dissertation introduces mechanisms that explain the international expansion of emerging-market multinational enterprises (EM MNEs) into advanced economies. It aims to provide a theoretical explanation of global champions from emerging economies. We propose path-breaking change as a complementary view that is the driver of emerging-economy firms’ international expansion into advanced economies. We argue that path-breaking change is a prerequisite before emerging-economy firms build and, in turn, leverage their ownership advantages in advanced economies. In addition, we further investigate the antecedents of path-breaking change. Building upon the upper-echelon theory, we assert that the composition of a top management team (TMT) and a board of directors (BOD) have an impact on the extent of a firm's path-breaking change. We argue that foreigners and executives with international exposure may bring new knowledge and introduce new management practices to their organizations. They may usesuch knowledge and skills to transform firms into more market-oriented entities. However, success in the domestic market may prevent a firm from changing. Firms tend to build their capabilities upon their historical path trajectory. Hence, market leadership position, conglomerate diversification, and government ties deter firms from venturing into advanced economies

This dissertation addresses issues concerning liquidity and its volatility. It consists of two essays. The first essay, "Liquidity, Macro Factors and the U.S. Equity Flows to Emerging Markets", examines the role of liquidity on equity flows from the U.S. to fifteen emerging markets around the world. Since liquidity has many dimensions, an emphasis is placed on utilizing various measures of liquidity. Moreover, both static and dynamic analyses, as well as short and long-horizon regressions, are performed to investigate the research questions. The results suggest that a liquid market attracts flows, after controlling for market size, political openness, exchange rate and other macro factors. Additionally, evidence indicates that the importance of liquidity varies across regions. For instance in the Asian region, the relation between equity flows and volume-related liquidity is weak while that between flows and price impacts of trading is strong. Evidence also supports the relevance of macro factors such as a country's economic freedom. The second essay, "Liquidity Risk Premium Puzzle and Possible Explanations", attempts to resolve the liquidity risk puzzle: a negative relation between returns and liquidity risk, documented by Chordia, Subrahmanyam, and Anshuman (2001b), by employing alternative liquidity measures and by incorporating factors that might potentially affect the relation. The main findings are as follows. The relation between stock returns and volatility of liquidity depends on the measure of liquidity. When liquidity measures are based on trading volume, the results are largely mixed, but when liquidity is measured based on price impact of trading, the relation between returns and volatility of price impacts is positive, as expected. The results are sensitive to time periods examined. Moreover, during extreme down markets, the aversion to liquidity volatility is lower, suggesting behavioral bias might potentially address the puzzle. Empirical findings also suggest that liquidity risk premium tends to be greater for small stocks. Finally, when the VIX index is included as a proxy for investor sentiment, the results indicate that the relation between returns and liquidity risk is significantly positive in four out of five liquidity measures. In sum, the empirical analysis partially but not completely addresses the puzzle.

Emerging-market multinational enterprises (EMNEs) have been increasingly engaged in outward foreign investments, the distinctive feature for their internationalization being the aim of strategic asset-seeking and acquiring knowledge. Thus, reverse knowledge transfer is significant in achieving innovation catch-up. Subsidiary willingness towards reverse knowledge transfer has huge implications for building up competitive advantages for MNEs. However, research on EMNEs shows that the subsidiary willingness towards reverse knowledge transfer is rather low. In this vein, the purpose of this thesis is to explore headquarters initiatives to improve subsidiary willingness in EMNEs. This thesis conducts a qualitative case study by semi-structured interviews with respondents from both headquarters and subsidiaries in a Chinese MNE. A case of a Chinese MNE, Geely, and its two Swedish subsidiaries (i.e. Volvo Cars and CEVT) is adopted to explore our research question. The findings suggest that headquarters in EMNEs can improve subsidiary willingness towards reverse knowledge transfer by promoting socialization between headquarters and subsidiary, granting subsidiary autonomy, making contributions to the subsidiary as well as maintaining headquarters/subsidiary cooperation. This thesis contributes to the research on reverse knowledge transfer and EMNEs by identifying new antecedents which influence subsidiary willingness in EMNEs.

Magister Commercii - MCom / A possible effect of quantitative easing (QE) undertaken by the United States of America (USA) Federal Reserve Bank (Fed) may have been an increase in capital flowing into emerging market economies (EMEs). The 2008 global financial crisis created an environment in which traditional monetary policies – cutting policy rates – became ineffective in stimulating growth. Faced with this policy environment, several high-income countries including the USA resorted to unconventional monetary policies notably QE, to grow their economies. While QE was effective in lowering interest rates in high-income countries, some argued that investors switched to higher yielding assets, mostly EME assets. Therefore, QE is perceived to have increased capital flows into EMEs. Using a dynamic panel data model with fixed effects this mini-thesis investigates empirically whether QE worked through unobservable channels to increase gross private capital inflows to Brazil, Russia, India, China and South Africa (BRICS) in the period 2000-2015. The study finds evidence in support of the view that QE increased capital inflows to EMEs. The results reveal that gross private capital inflows to the BRICS increased during the QE intervention period and that the increase was higher in the first period of QE than in subsequent QE periods. The empirical results also reveal differences in the way types of capital flows responded to QE; portfolio flows, and in particular equity flows were the most responsive to QE.