Insights @ CEM Magazine

When multinational companies from advanced economies set up operations in emerging markets, they often bring with them higher environmental standards, more efficient technologies, and robust sustainability practices. These aren't just internal improvements—they can create ripple effects throughout the local business ecosystem. For local firms, especially small and medium-sized enterprises (SMEs), this presents a valuable opportunity to learn, adapt, and upgrade their own environmental practices.

Emerging markets offer multinational corporations high growth potential, but these opportunities are frequently beset by challenges such as bribery and other forms of corruption. Although corruption deters foreign investment, Negash Haile Dedho, René Belderbos, and Alvaro Cuervo Cazurra found that the way a company responds to these challenges hinges significantly on its home country experience, creating a divide between “dirty hands” and “clean hands” companies. 

For decades, the innovation pipeline for multinational corporations (MNCs) largely flowed in one direction, from global R&D centers in developed economies to emerging market subsidiaries. The role of local R&D units in emerging markets were typically limited to adapting existing products for local tastes or finding ways to reduce costs. The assumption was that sophisticated “lead customers” and cutting-edge external experts resided primarily in developed markets, making them the natural epicenters of innovation. However, recent research challenges this paradigm, revealing how emerging market R&D units can become powerful engines for global innovation.

From the rise of emerging-market firms as leaders in global value chains to innovative governance structures that address sustainability and human rights challenges, the topics in the Fall 2024 issue of Insights @ Center for Emerging Markets offer fresh perspectives and actionable insights for navigating complex market dynamics.

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 and explore 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, examining 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.