Resource Curse Effects on Emerging/Developed Economy MNE Competitiveness and Co-Evolution

We explore competitive and co-evolutionary/co-devolutionary relationships between multinational enterprises from developed economies and their counterparts from “resource cursed” emerging economies. We theorize that these relationships challenge and extend prior competitive dynamics and co-evolution/co-devolution research in dealing with five particular characteristics of a resource curse (e.g., severity, extreme boom-and-bust cycles, manufacturing sector investment crowding-out, large economic ‘windfalls’ and negative public discourse). In such an environment, firm ties with emerging economy institutions mediate how competitive dynamics between emerging and developed economy multinationals co-evolve or co-devolve their relationship over the emerging economy’s resource curse cycle. We present a series of propositions describing this process. Finally, we discuss managerial and policy …