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Learning from failures of Indian investments in Finland

Learning from failures of Indian investments in Finland

Seminar on June 17 held by our guest, Professor Ajeet N. Mathur from Indian Institute of Management Ahmedabad
Email:
anmathur@iimahd.ernet.in

This seminar presentation contributes to expanding the conversations around investments of multinational companies from emerging economies (EMNCs) in developed countries. The purpose is to invite attention to management processes and business systems in how these combine to affect outcomes. There are very few enterprise level studies of Indian outward foreign direct investments (OFDI) to a developed country, and none at all to Nordic Europe. Longitudinal studies of the two of the first Indian foreign direct investments in Finland (both failed) would be shared to raise working hypotheses that merit deepening studies for the geographical diversification by Indian business groups. Tentative policy implications arising for host and home country and for others treading such paths are also discussed. The tentative conclusion is that the pull for OFDI from emerging and developing economies in investment-scarce developed countries can attract investments from developing countries that lack potential for sustainable growth or shareholder value raising the spectre of adverse selection, besides moral hazards. Inward foreign investments regarded as nectar may be poisonous if the nexus of stakeholders lacks motivations or capabilities to go beyond the lure of para-statal incentives and subsidies that could be one of the key pulls or drivers of such investments.

Ajeet N. Mathur is Professor in Strategic Management and International Business in the Business Policy Area, IIM Ahmedabad, India since 2006. The focus of his research in international business is on missing markets, market barriers, and the management of institutional diversity in cross-border value chains. Before joining IIM Ahmedabad, he was the Founding Professor of International Business, University of Tampere, EU-TEMPUS Professor of European Integration and Internationalization, the IFCI Chair Professor, and Indian Council of Research on International Economic Relations. He has held visiting academic appointments at K.U. Leuven, Belgium, University of Edinburgh, Cornell University, University of California at Berkeley, University of Bielefeld, Germany, Helsinki School of Economics, Aalto University, Turku School of Economics, and Fresenius University, Cologne. His publications include twenty seven books and over one hundred and fifty papers in scientific journals and anthologies. Ajeet has also been a member of the Board of Directors with Corporates in India and Europe and is consulted by businesses, governments, international organisations and the policy research community. He served a term as the Director, Institute of Applied Manpower Research with the rank of Secretary to the Government of India.