Strategies of Multinational Corporations in Emerging Markets in Indonesia

Abstract

Purpose: The aim of the study was to examine the strategies of multinational corporations in emerging markets in Indonesia Methodology: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library Findings: Multinational corporations (MNCs) in Indonesia's emerging markets exhibit a preference for collaborative entry strategies, emphasizing joint ventures and strategic alliances. These approaches enable MNCs to harness local expertise and navigate the complexities of the Indonesian market effectively. Government policies play a pivotal role in shaping MNC strategies, with favorable policies attracting greater foreign investment and expansion. Industry-specific competitive strategies, including price competition, technology differentiation, and product innovation, are tailored to meet local market demands. Additionally, MNCs actively engage with the Unique Contribution to Theory, Practice and Policy: Eclectic paradigm (OLI Framework), Resource-based view (RBV) & Institutional theory may be used to anchor future studies on the examining the strategies of multinational corporations in emerging markets in Indonesia. Encourages MNCs to build meaningful partnerships, leveraging local expertise and networks, which can be crucial for navigating complex regulatory environments and market dynamics. Engaging in policy advocacy represents a proactive approach by MNCs to shape the regulatory landscape in their favor while contributing to the host country's economic development.