African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 3973

Full Length Research Paper

Leaving home: Relocation choices of South African multinational enterprise (MNEs)

Saul Klein
  • Saul Klein
  • Lansdowne Professor of International Business, Peter B. Gustavson School of Business University of Victoria, Canada.
  • Google Scholar
Albert Wöcke
  • Albert Wöcke
  • Lansdowne Professor of International Business, Peter B. Gustavson School of Business University of Victoria, Canada.
  • Google Scholar
James M. Hughes
  • James M. Hughes
  • Gordon Institute of Business Science, Pretoria, South Africa.
  • Google Scholar


  •  Received: 02 August 2011
  •  Accepted: 07 April 2014
  •  Published: 28 April 2014

Abstract

As multinational enterprise (MNEs) from emerging markets grow into maturity they face significant challenges surrounding their identities and home country bases and, as a result, we see them making different choices. National champions choose to retain their corporate headquarters and identity from their emerging market homes while corporate emigrants relocate their head-offices abroad. Targets of mergers and acquisitions (M and A) may move to the acquirer's home or stay where they were born.  Through an examination of South African-born firms that are cross-listed on both the Johannesburg securities exchange and one other exchange, we identify the differences between these evolutionary paths and discuss the drivers and constraints on relocation decisions.
 
Key words: South Africa, emerging markets, multinational enterprise, location advantage, headquarters.