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The Capabilities That Determine Whether Multinational Enterprises (MNEs) Stay or Leave: A Case Study of Unilever's Sustained Commitment to Emerging Markets.
Alfano, Giada
Alfano, Giada
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Abstract
Multinational Enterprises (MNEs) operating in large, complex emerging markets (EMs) are continuously exposed to heightened geopolitical and institutional volatility, which translates into significant operational uncertainty and elevated transaction costs. This capstone investigates how MNEs successfully mitigate these risks and sustain long-term commitment rather than choosing strategic withdrawal. Utilizing the Dynamic Capabilities Theory (DCT), this study employs a qualitative, critical case study of Hindustan Unilever Limited (HUL), a subsidiary operating in the highly complex Indian market environment. The research examines HUL’s strategic responses to macroeconomic shifts, regulatory uncertainties, and intense local competition through the lens of DCT’s three core processes: sensing (identifying threats and opportunities), seizing (mobilizing resources), and transforming (renewing organizational assets). The findings demonstrate that effective dynamic capabilities serve as a crucial moderating force, enabling HUL to strategically transform its governance modes and operational capabilities to maintain competitive advantage amidst pervasive institutional voids and geopolitical fluctuations. This research provides significant implications for global MNEs formulating longterm commitment strategies for high-risk, high-reward emerging economies like India.
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2025
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Keywords
Emerging economies, Emerging markets, Competitive advantage
Citation
Alfano, Giada. "The Capabilities That Determine Whether Multinational Enterprises (MNEs) Stay or Leave: A Case Study of Unilever's Sustained Commitment to Emerging Markets". BA in International Business Capstone, John Cabot University, Rome, Italy. 2025.