Exploring the Evolutionary Trajectory of Emerging MNEs’ R&D Internationalization Journey

Abstract

This paper investigates the evolution of R&D internationalization in emerging-market multinational enterprises (EMNEs). Firms with robust domestic R&D capabilities and streamlined processes are inherently equipped to internationalize their R&D activities, using their local market success, and accumulated domestic experiences as a springboard to explore international R&D opportunities. Based on secondary sources, we examine the evolution of the software sector in India, China, and Bangladesh, which are three geographically close emerging countries that share similar characteristics, however with different R&D internationalization outcomes. We provide a theoretical framework based on the evolutionary perspective, highlighting the importance of past experiences, competencies, and institutional mechanisms in determining the trajectory of these firms. In addition, this study demonstrates the role of learning, adaptation, and innovation in response to environmental pressures and international expansion, which reflects firms’ evolutionary fitness. The conclusion of the paper calls for additional empirical research on the evolutionary trajectory of EMNEs, particularly in the context of stringent regulatory environments.