The vector of the home government influence upon Russian MNEs: Balancing the control against the interest

Abstract

Influence of government is crucial for international operations of most emerging economies' firms. However, not all these firms have the same experience with government interventions: some benefit more, some less, and some make losses. The government roles vary among countries and industries. One pole is an absolute financial support and trade protection, while other is a restriction or too strict regulation. Firms react differently; some try preventing or at least predicting such behavior, while others do not put too many efforts to avoid this government enrolment in their business and projects abroad. With particular example of Russia, this paper answers on how the government influences an internationalization of emerging multinational enterprises, and what are the effects on their strategy and competitive advantages. It also analyzes the role the government plays to help these companies, particularly when they go internationally, answering questions how the government can shape an emerging MNEs' competitive advantage and at what level should it act to help company when expanding abroad. In addition, it argues how firms can protect themselves against the government intervention and what causes different experience.