This article analyzes political strategies of MNC subsidiaries in emerging markets. We find that institutional pressures from public and private non-market actors in the emerging market lead to increased political activism. Furthermore, we find that these relationships become stronger, when the external pressures are joined by strong firm-internal pressures. Our findings contribute to the scarce literature on firms' political strategies in emerging markets. They also support recent criticism of institutional theory's strong focus on isomorphism as the most important legitimacy-conveying mechanism. We argue that the isomorphism-based either-or logic gives way to stronger agency of the subsidiary and to a logic of active negotiation and social construction of the subsidiary's legitimacy in the emerging market. Our findings show support for this idea as political activism is one such way how the subsidiary's legitimacy can be built and nurtured.

General content: Current methods of estimation of cost of capital in the emerging markets are often neglecting various contradictions with the essentials of the model structure and assumptions. As the result of such imprecisions, the cost of equity is often understated (overstated). This thesis will attempt to assess current level of emerging market integration, liquidity and concentration. This will be followed by evaluation of traditional and alternative models for estimation of cost of equity. The author will address several currently available models such as Credit Rating Model, D-CAPM model, various versions of traditional CAPM models. Furthermore, she will compare and contrast their limitations taking into account the context of emerging markets. The testing of the models will be performed on country basis through the means of index data. In the last chapter, discussion of the results and possible improvements of the valuation approaches will take place.

The obsolescing bargaining model (OBM) is the cornerstone for studying host country-MNE relations. Recent research has extended the OBM to incorporate other institutional stakeholders who participate in the multi-level, multi-party iterative political bargaining over policy issues which characterises much of the bargaining now to reflect the widespread macroeconomic changes from globalization that impinge on the model. Furthermore, the emergence of developing countries like India and China as high growthend markets has conceivably changed the nature of bargaining therein. This study adopts a triadic perspective to bargaining in EMs. The conceptualization including local MNEs addresses the lack of understanding on bargaining in EMs by suitably incorporating the institutional context which frames the triadic interplay. It focuses on the role of co-opetition by local MNEs in affecting the balance of bargaining power between host governments and foreign MNEs. Co-opetition is a strategic response by multinationals where they simultaneously compete and cooperate for mutual gains. This research enables the study to empirically challenge the assertion that the propositions of the OBM have become too dated to explain current bargaining structures. The extant literature provides the theoretical underpinnings for the development of a priori propositions which guide the empirical enquiry through a case study of the life insurance industry in India. Based on the unique insights offered through the single industry study, the analysis suggests that certain EM conditions now present the context for re- emergence of obsolescence for foreign MNEs. Furthermore, it is the evolution of the EMs’ own local MNEs who are deeply embedded in the local business culture constituting their identity as strategic insiders, who shape the development of bargaining power. Local MNEs as strategic insiders affect the foreign MNEs’ long term business prospects in EMs based on their co-opetition through an issue- area approach. Local MNEs’ existing insidership becomes the reason for both - foreign MNEs’ collaboration with them and the perpetuation of their lack of strategic insidership. It is the basis for the uneven playing field and for the deterioration in their initial bargaining power. Thus, in line with the OBM, entry bargains themselves are seen to obsolesce following the ambivalence in bargaining objectives and the sequential behaviour that both the local MNEs and the host government adopt. Co- opetition emerges as the explanatory variable while discerning the nature of emergent bargaining between governments and foreign MNEs in EMs. The application of a triadic, co-opetition perspective to bargaining is revealing andprovides original insights. An extended framework and modified propositions aredeveloped for future research. This study provides grounds for revisiting the OBM inthe context of other similar markets and for guiding future MNE strategy in EMs.

The annual Global Venture Capital and Private Equity Country Attractiveness index which is sponsored by IESE Business school, Ernest&Young and Emlyon Business School, benchmarks the attractiveness of 116 countires for receiving institutional private equity and venture capital allocations. The factors used in determining this ranking are based on the findings from a study conducted by Groh, Liechtenstein and Leiser, (2008). South Africa was ranked 26th above Brazils' 43rd for the 2010 year meaning that as per the indexes criteria's, South Africa should be more attractive desitnation for private equity and venture capital investments over Brazil, yet the aggregate private equity deal value in South Africa in 2010 was US$1.5 billion (2009:24), while Brazil ranked 11th with aggregate deal value of US$6.3 billion (2009:US$940 million, ranking 26th) for the same period (KPMG 2011; Ernst&Young 2011).The objective of this study was to gain understanding into factors that are contributing to the attractiveness of private equity investments into Brazil through the testing of the key drivers as documented by Groh et al. (2008), and incorporating the findings of Leeds (2003) and Klonowski (2011).Throught the use of semi-structured, in-depth expert interviews, this study supported earlier studies such as that by Klonowski (2011) who contributed growth in PE investements inflow to not just the population size of a country but the ability of the inhabitants of that country to drive or stimulate local demand through the purchasing power of the emerging middle class. In the case for Brazil, the norms that have applied in other emerging markets including South Africa in relation to investor and property protection rights, administrative burdens, corporate governance and the quality of legal enforcement do not apply, or at least not to the same extent as experienced in those markets. Lastly the Study established that private equity industry itself can impact attractiveness levels both positively and negatively. / Dissertation (MBA)--University of Pretoria, 2013. / Gordon Institute of Business Science (GIBS) / unrestricted

The bottom of the pyramid (BoP) market in Africa is a significant opportunity for multinational banks. To address this banks’ need to increase their understanding of their BoP context, develop new approaches to overcome BoP obstacles, and use technology to create new commercially viable business models. The purpose of this study was to investigate how banks use co-creation with stakeholders to operate in BoP markets in Africa. The research explored how banks provide services to companies and individuals that currently do not use banks services, and acquire understanding by working with companies, individuals and other market actors to generate services that creates an infrastructure for BoP markets to ‘work’. This study addresses the gap in the research on how banks co-create in BoP markets, providing understanding of how banks’ create approaches to customers and operating models to achieve sustainable growth in BoP markets. Empirically, the study examined specific bank projects to better understand how co-creation supports banks to delivers sustainable and scalable business models. The main findings from the empirical research demonstrated positive results, strong leadership and commercial management are critical to banks operating in BoP markets in Africa; concurring with arguments put forward by Casado Cañeque and Hart (2015) and extending London and Hart’s (2010) analysis into a banking context. Research confirmed post-financial-crisis corporate governance of banks and their boards’ ability to ensure they can demonstrate their banks are well managed, and management having a detailed understanding of the operations, has created trade-offs and restrictions on how banks operate in BoP markets. No common strategies emerged to create a new business model for banking in BoP markets in Africa. No immediate significant new direction emerged for banks to overcome their business models’ legacy of inflexibility to address the needs of BoP customers. Results revealed bank proposition development approach remains generally focused on developed, rather than developing, customer contexts and regulations. The majority of BoP customers in Africa remain excluded due to cost, distance, and a lack of suitable products, as variables such as access, cost and regulation made it challenging for banks to provide compelling bank-wide propositions. BoP customers in Africa are becoming easier to access, as banks, card networks, and mobile network operators use digital technology, like mobile phones, to access BoP customer markets at lower costs than traditional business models, allowing new approaches to proposition development, such as test and learn in the field. The findings demonstrated value in co-creation via partnerships, supporting Simanis (2012), who maintained that firms are likely to be successful in BoP markets if they use existing infrastructure and local partnerships to enter BoP markets, and that pioneering work on microfinance initiatives embracing new approaches to digital technology across banking markets has led banks to reconcile the need for new approaches to BoP markets.

In the first essay, in contrast to some earlier studies, I document statistically significant within-country style effects in several emerging Asian equity market portfolios. Small capitalization and value stocks tend to outperform their style counterparts. However, there are considerable periods of time when large capitalization and growth stocks outperform. Overall, single style strategies are risky when applied to each individual market. In the second essay, I report that average return correlations among the zero-cost style portfolios are low - emphasizing the value of an intra-regional diversification strategy. These correlations exhibit significant variation over time. Measures of integration for the style portfolios are also low on average but tend to vary over time. Style returns in the original ASEAN-5 markets exhibit much higher correlations following the Asian financial crisis, and, these correlations remain elevated for several years. These results suggest that while diversification is helpful on average, there are some periods of time when a regional style rotation strategy is warranted and other times when country-specific rotation strategies are reasonable. In the third essay, I conduct bootstrap experiments on significant winner and loser continuations for each style and the style triplets in Asian emerging equity markets. I provide only modest evidence of style continuation in Asian emerging markets. I also test for style-level momentum in emerging Asia and condition style momentum returns on January, market state, monetary policy and cross-sectional dispersion. I find significant conditional style-level momentum in some Asian emerging markets but not others. I attribute the weaker style momentum results in emerging Asia to a lack of country-level style-specific derivatives in these markets.

Regional integration, defined as a process in which countries enter into agreements to enhance regional trade, economic and political cooperation, remains an integral part of Africa’s development strategy as evidenced by the proliferation of regional integration agreements on the continent. The implications of these regional agreements on the strategy and operations of multinational corporations on the continent is a question that has received little attention, and as a result, largely remains unanswered. The East African Community, the regional intergovernmental organisation between the Republics of Burundi, Kenya, Rwanda, Tanzania and Uganda, may lay claim to the position of being the most advanced regional block in Africa with respect to progress made at implementing integration objectives. As such, the impact that deepening integration may have had on multinationals operating in the East African Community evokes much interest and attention. This research therefore interrogates the implications of deepening regional integration on business strategy in the East African Community. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

This paper investigates how individuals in emerging markets, specifically South Africa, approach their savings decision. The researcher attempts to identify those attributes most desirable to emerging market consumers, in so far as the allocation of their disposable income to saving is concerned. In the wake of one of the biggest financial crises to hit the modern world, there is going to be increased scrutiny into how financial institutions and countries capitalise their balance sheets. The manner in which financial advice is given to individuals will face similar scrutiny as such the subject matter requires even greater understanding. Human beings in some parts of the world are living increasingly longer. Longevity risk is the risk that people may live for longer than the average expected. This poses risks of uncertainty of the quantum of financial assets to build up in preparation for retirement. These are pertinent reasons for the need for a study of this nature. The research found that stereotypical understandings of the profile of a typical emerging market individual are being challenged. As such organisations looking to take advantage of business opportunities present in these markets need to be cognisant of this change in shaping their business strategies. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

The purpose of this study was to explore and gain insight into the current purpose of contracting and, in the main, the future of contracting in emerging markets. The study aimed to explore the nature of contracting in emerging markets in order to understand what the future of contracting will be in emerging markets. The study was a qualitative study and a sample of ten participants was interviewed. Findings of the study indicated that the emerging market environment is risky due to unfamiliar local nuances; and local laws are preferred over international law. Technology and innovation are not a strong focus in emerging markets but relationship frameworks allow for some degree of flexibility and innovation. Relationships and their importance were the biggest finding of this research prompting an exploration of the Confucian concept of guanxi highlighting relational networks within social settings. The research further identified that contract professionals need to firstly be both competent and globally literate. Relationships and links between skills, knowledge and the operating environment are intertwined in determining the future of contracting. The research concluded by making recommendations to Chief Executive Officers of multinationals, lawyers, contract professionals and consultants in emerging market firms in light of the findings of this research. The research highlights the legal and both internal and external contextual considerations of contracting and also suggests variables for further research that are crucial for a deeper understanding of contracting in emerging markets. / Dissertation (MBA)--University of Pretoria, 2014. / zkgibs2015 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The internationalization process of firms has essentially been in two contexts, one focusing on those from the developed, and the other on those from the developing economies (Buckley et al.2008). According to (Panond, 2007), internationalization of Emerging Market Multinational Corporations (EMMNCs) has appeared in two waves, the first wave, which emerged in the late 1970s and early 1980s viewed the competitive advantages of EMMNCs as being derived from their ability in reducing costs through scale economies, often substituting machinery with human labour and replacing imported inputs with cheaper local ones, or improving performance through knowledge of operating in less developed markets.The objective of this research has been to understand the variables that drive the success of Mergers and Acquisitions as a mode of entry in Emerging Markets. The research looks at the application of these variables my multinational corporations from both emerging markets and those from developed markets; the aim is to ascertain if these variables are applied differently depending on the type of economy a multinational originates from.Given the saturation of developed markets multinationals have embarked on growth strategies into emerging markets where these markets are perceived as untapped, however most have failed to realise shareholder value as a result of the dynamics and challenges that these economies bring.Fukao et al. 2005 suggests that market share is one of the most useful means used in assessing the structure of the market and a particularly desirable characteristic of a target firm. This is usually couched in terms of having a ―good market position‖ in the relevant market. The specific target criterion is of special consideration in sectors which may show a high degree of stability of market structure (as compared to those which are characterized by technology intensity, low entry barriers and powerful competition, showing high volatility of market shares). As a result, it is expected that the market share variable will bear a positive coefficient in explaining the likelihood of foreign acquisition.The research proved successful that the application of the variables that determine success of an acquisition and merger between multinationals was similar and what drove this success was mainly based on experience in doing mergers and acquisitions. These led to further insights for current and future work on the topic. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted