ABSTRACT
The growth rate of a number of Emerging Market (EM) multinational enterprises (MNEs) has actually exceeded that of MNEs originating from developed economies. EM MNEs have to deal with people management issues when they internationalise their business operations to other countries. The limited research on EM MNEs has mostly paid attention to the internationalisation strategies and processes of those firms without examining their challenges and the human resources (HR) implications of that internationalisation. The notion of Liabilities of Foreignness has been discussed in the international management literature for a long time. The exploration strategy has been first defined by March (1991) as the following terms: ‘search, variation, risk taking, experimentation, play, flexibility, discovery, and innovation’ whereas the exploitation strategy has also been first defined by March as the following: ‘refinement, choice, production, efficiency, selection, implementation, and execution’. The choice of entry mode is an important part of a firm's internationalisation strategy.
