The Competitive Advantage in the GCC Countries: An Investigation of Emerging and Developed Multinationals in the Oil Industry

This research investigates the performance of MNCs in emerging economies by focusing on the competitive advantages of MNCs from developed countries and those of the MNCs from emerging ones. Also, the research observes the competitive advantages of the emerging markets that could attract both developed and emerging MNCs. The research reveals that both MNCs have competitive advantages in emerging economies that could enable them to survive and flourish. Also, Emerging economies have conditions that could attract both MNCs. Furthermore, it reveals that multinational corporations from developed countries have a higher market share than emerging multinationals, while multinational corporations from emerging economies enjoy a significant return on assets. The return on sales and employee investment for both developed and emerging corporations were found to be mixed. The research also shows no favoritism to any multinational corporation in the oil industry, whether developed or emerging in the GCC. Moreover, multinational corporations from emerging and developed economies have different characteristics in terms of their firm-specific advantages. The empirical findings of the research contribute to filling the gap in the literature by considering the importance of FDIs made by multinational corporations from emerging economies versus those from developed economies.