Article Review 2 INDIVIDUAL ASSIGNMENT REPORT (ARTICLE REVIEW) Student's Name

Article Review 1
INDIVIDUAL ASSIGNMENT REPORT (ARTICLE REVIEW)
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November 6, 2018

Article Review 2
Introduction
In the global business world, studying if the host country’s organizational-centered technology
enhances the propensity of the Emerging Market Multinational Enterprises (EMNEs) is
necessary. In that case, this paper is a review of an article titled: Knowledge Seeking and
Outward FDI of Emerging Market Firms: The Moderating Effect of Inward FDI. The authors of
this article are Jing Li, Yong Li, and Daniel Shapiro. The volume number is 2 whereas the issue
number is 4. The report was published in 2012 under the Global Strategy Journal, as the name of
the journal.
Concepts & Issues
The fundamental concepts in the article under review is the explicit consideration of alternative
means for emerging organizations to obtain knowledge. Specifically, the article postulates that
internal FDI in EMNEs’ local markets proposes a strategic framework for emerging
organizations to improvement on technological activities. The literature on FDI spillover
advocates that international companies usually deliver comparably enhanced initiatives
considering their investments in developing areas. Resultantly, inward FDI formulates skill
spillovers that are beneficial to local companies using demonstrative linkages with clients,
effects, competitors, suppliers and the mobility of skilled personnel.
Li, Li and Shapiro (2012), address two fundamental and underexplored issues: does EMNE have
the propensity to globalize to other nations using technological resources; and the means why the
inward FDI, in EMNE local markers, through the generation of skill spillover, affects EMNE’s
technological-searching over the framework of FDI’s decisions. The article's arguments start
with the analysis of EMNEs penetrating to the international market and how these firms can
catch-up with established MNEs concerning technological abilities to enhance their competitive
advantages. In that regard, the authors argue that EMNEs are searching for strategic measures to
change from focusing on low value-centered activities to concentrating on high value-centered
manufacturing activities using Research and Development (R&D).
Article’s Main Focus
The article focuses on if a host country’s firm-centered technological advantages enhance
EMNEs’ propensity to globalize into a host market. The authors present an excellent argument
by exploring the inward FDI in the EMNE local market through the formulation of skill
spillovers in specific global markets hence minimizing EMNEs' tendency to globalize using a
skill search. The article’s discussion was centered on the application of longitudinal information
on global investment actions of Chinese production organizations. The authors denoted and
supported their hypotheses by evaluating underlying exterior FDI motives. Hence, the article
presents a discussion of the research's implication and practice on emergent organizations.
Generally, the framework of the discussion was tested using data sets from global equity
investment of Chinese organizations in the production sector dating from 1990 to 2009.
The research also focused its arguments using the Cox framework to evaluate the implication of
comparable technological advantages of an incumbent country on a Chinese organization in
global investments, physical resource searching and market analysis. In the methodology section,
the authors argue that they were able to control the Chinese organization’s experience on