Exploring multilevel innovative ecosystems and the strategies of EMNEs through disruptive global expansions – The case of a Chinese MNE

Abstract

While researchers have analysed how multinational enterprises (MNEs) cope with the challenges and risks related to undertaking foreign direct investment (FDI), their findings have only led to a partial understanding of the optimal risk involved in the knowledge-intensive entrepreneurship strategies chosen by MNEs at the time of entry, and of the innovative ecosystems in which they operate. Moreover, particularly at the post-entry stage, we still have a limited understanding of how MNEs identify, pre-empt, manage, and mitigate the various knowledge-intensive entrepreneurship risks found in foreign markets over the various stages of their subsidiaries’ life cycles within their innovative ecosystems. We argued that, in host countries characterised by substantial dynamic risks, MNEs are likely to adjust their risk management and mitigation strategies based on the experiences they gain in four distinct phases: pre-entry (when decisions on mode of entry are made), immediate post-entry, current status, and future strategies and plans. Within innovative ecosystems, these dynamics are compounded in emerging market contexts; in particular, those relating to FDI destined to other emerging markets. We contribute to the literature through a unique case study narrative obtained by drawing on multiple triangulated sources of data, including in-depth interviews and archival data, which led to nine key future research directions. We portray how a young Chinese telecommunication MNE had managed and mitigated various risks by understanding and navigating a complex landscape, by developing and exploiting an innovative ecosystem, and by adopting unique and disruptive internationalisation strategies in India.