Emerging market multinationals’ embeddedness in Global South countries: an empirical study of Chinese MNEs in Peru

• Published in: Critical perspectives on international business 2024-07, Vol.20 (4), p.517-538
• Main Authors: Mazé, Dominique, Alcaraz, Jorge, Buitrago R., Ricardo E.
• Format: Article
• Language: English
• Subjects: Business ecosystems; Community; Developing countries; Emerging markets; Host country; LDCs; Legitimacy; Multinational corporations; Power; Social networks; Social responsibility; Society; Stakeholders
• ISSN: 1742-2043; 1742-2043; 1758-6062
• DOI: 10.1108/cpoib-09-2023-0087

Purpose This paper aims to investigate how emerging market multinational enterprises (EMNEs) are integrating and expanding into other emerging market host countries, focusing on Chinese mining companies in Peru. Design/methodology/approach Adopting a qualitative approach, an in-depth analysis of two Chinese state-owned enterprises’ strategies was conducted, building on stakeholder theory and the business ecosystem perspective. Findings This study reveals a reliance on high-level political lobbying rather than localized engagement strategies. However, findings point to increasing grassroots resistance among local stakeholders, undermining EMNEs’ bargaining power. Originality/value This paper argues for a paradigm shift toward inclusive, cooperative “translocal governance” approaches as empowered communities gain voice. Key contributions include advancing theoretical understanding of changing stakeholder relationships and power configurations in emerging countries, underscoring the rising significance of microlevel sociocultural embeddedness for MNE success and highlighting practical imperatives for EMNEs to embark on rapid localization strategies in Latin America. By elucidating multilayered integration realities in Peru, this interdisciplinary study yields contextualized insights and enriches perspective on the conditions and pathways for EMNEs to build sustainability in Global South emerging market environments.