Insights @ CEM Magazine

Global supply chains have recently come under greater scrutiny following several high-profile cases of labor abuses, particularly in the wake of the Rana Plaza factory collapse in Dhaka that claimed over a thousand lives. Although international guidelines such as the UN Universal Declaration of Human Rights and ILO International Labour Standards provide a framework for ethical labor practices, their effectiveness is contingent upon consistent enforcement. This can be a formidable challenge when suppliers operate independently from developed-country buyers, often in regions marked by weaker legal systems. 

Most studies on global value chains focus on advanced economy multinationals that develop products in-house and retain high-value added activities, while outsourcing low-value tasks, like component manufacturing and assembly, to emerging market suppliers. However, this dynamic is shifting as increasing numbers of emerging market suppliers are becoming multinationals and exerting control over more value chain activities. Initially positioned as suppliers for western brands, these companies have leveraged their roles in global value chains to learn, acquire advanced capabilities, and strategically expand through acquisitions. Over time, they evolve to compete directly with established players, controlling their industry value chains and becoming global leaders. This shift requires a deeper understanding of how emerging market multinationals differ from their advanced economy counterparts in their strategic use of global value chains.

In Latin America, multinational enterprises (Multilatinas) are increasingly using global cities as springboards for international expansion. Companies like Brazil's Embraer, Vale, and Natura, Mexico's CEMEX and Bimbo, and Argentina's Tenaris exemplify this trend, challenging the traditional view of multinationals originating solely from developed economies. Research by Evodio Kaltenecker and Miguel Angel Montoya Bayardo sheds light on the strategic importance of global cities in the internationalization of these firms.

The Spring 2024 issue of Insights @ Center for Emerging Markets brings together researchers from Northeastern University and the broader global academic community to explore a diverse set of topics including sustainability, trade policy, supply chains, family business and global leadership in emerging markets. These topics shed light on sustainable growth opportunities in emerging markets and the pivotal roles that both regional and multinational firms play in supporting that growth.

Read the fourth issue of Insights @ Center for Emerging Markets, bringing together researchers from Northeastern University and the broader global academic community to explore the topic of sustainability and Corporate Social Responsibility in emerging markets. Understanding these concepts enables managers and policymakers to make ethical decisions, safeguard long-term business success, and effectively handle the unique socio-environmental contexts of these key growth areas.

Read the third issue of Insights @ Center for Emerging Markets, bringing together researchers from across Northeastern University to examine topics such as innovation in Chinese management, cultural agility, the challenges of informal entrepreneurship, shifts in global supply chain management, the future of healthcare in Sub-Saharan Africa, reverse innovation, and the locational effects of the United Nations Environment Programme in Kenya.

Read the second issue of Insights @ Center for Emerging Markets, bringing together researchers from the fields of corporate governance, accounting, entrepreneurship, international business, and legal studies to explore topics such as corruption in transition economies, how blockchain is modernizing global supply chains, and the impact of developmental assistance on entrepreneurship.

Read the first issue of Insights @ Center for Emerging Markets, bringing together international business and strategy experts examining topics such as foreign direct investment in China, the role of multinational companies in sustainable development, and corporate governance in the Middle East.