The Influence of the State on Expanding Russian MNEs: Advantage or Handicap?

Summary:

Government influence is crucial for the international operations of firms in emerging economies. However, these firms have varied experience of government interventions: some benefit more, some less, while the government roles vary among countries and industries. At one extreme, there is total administrative support and trade protection (e.g. for petroleum giant Rosneft or automotive “dinosaur” AvtoVAZ); at the other, there is overly strict regulation (as with some Russian independent media or non-government organizations). Firms react differently; some try to prevent or at least anticipate such behavior, while others put little effort into avoiding government involvement in their business and projects abroad.

Looking at the particular example of Russia, this paper examines how government influences the internationalization of emerging multinational enterprises, and what are the effects on their strategy and competitive advantages.

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