Home country learning and international expansion of emerging market multinationals

2020 ◽  
pp. 100781 ◽  
Author(s):  
Chinmay Pattnaik ◽  
Deeksha Singh ◽  
Ajai S. Gaur
Keyword(s):  
Home Country ◽  
Emerging Market ◽  
International Expansion ◽  
Emerging Market Multinationals

Home country underdevelopment and internationalization

2017 ◽  
Vol 27 (3) ◽  
pp. 217-230 ◽  
Author(s):  
Alvaro Cuervo-Cazurra ◽  
Ravi Ramamurti
Keyword(s):  
Emerging Markets ◽  
Comparative Advantage ◽  
Home Country ◽  
Emerging Market ◽  
Content Type ◽  
Emerging Market Multinationals ◽  
Economic Underdevelopment ◽  
Conceptual Paper ◽  
Practical Implications ◽  
At Home

Purpose The purpose of this study is to use the rise of emerging-market multinationals as a vehicle to explore how a firm’s country of origin influences its internationalization. Design/methodology/approach This paper is a conceptual paper. Findings We argue that the home country’s institutional and economic underdevelopment can influence the internationalization of firms in two ways. First, emerging-market firms may leverage innovations made at home to cope with underdeveloped institutions or economic backwardness to gain a competitive advantage abroad, especially in other emerging markets; We call this innovation-based internationalization. Second, they may expand into countries that are more developed or have better institutions to escape weaknesses on these fronts at home; we call this escape-based internationalization. Research limitations/implications Comparative disadvantages influence the internationalization of the firm differently from comparative advantage, as it forces the firm to actively upgrade its firm-specific advantage and internationalize. Practical implications We explain two drivers of internationalization that managers operating in emerging markets can consider when facing disadvantages in their home countries and follow several strategies, namely, trickle-up innovation, self-reliant innovation, improvisation management, self-reliance management, technological escape, marketing escape, institutional escape and discriminatory escape. Originality/value We explain how a firm’s home country’s comparative disadvantage, not just its comparative advantage, can spur firms its internationalization.

scholarly journals International strategies of emerging market multinationals: A dynamic capabilities perspective

2018 ◽  
Vol 26 (4) ◽  
pp. 408-425 ◽  
Author(s):  
Ping Deng ◽  
Yang Liu ◽  
Vickie Coleman Gallagher ◽  
Xiaojie Wu
Keyword(s):  
Dynamic Capabilities ◽  
Success Factors ◽  
Emerging Market ◽  
Future Research ◽  
International Expansion ◽  
Strategic Choices ◽  
Exploration And Exploitation ◽  
Emerging Market Multinationals ◽  
Internationalization Strategies ◽  
International Strategies

AbstractThis paper focuses on the importance of dynamic capabilities in shaping the nature of international strategies of emerging market multinationals from mid-range economies. We argue that dynamic capabilities theory provides an insightful approach to understanding the internationalization of emerging market multinationals and their strategic choices. Drawing on dynamic capability theory and unpacking dynamic capabilities into four distinct but related dimensions or facets, we develop a typology of three internationalization strategies available to emerging market multinationals in their international expansion: sequential international ambidexterity (from exploitation to exploration, and vice versa) and structural international ambidexterity (simultaneous exploration and exploitation). Success factors associated with each of the ambidextrous internationalization strategies are also considered. We conclude with a discussion of the implications of the dynamic capabilities framework for theoretical implications and fruitful areas for future research endeavors.

scholarly journals Explaining the surge in M&A as an entry mode: home country and cultural influences

2017 ◽  
Vol 34 (1) ◽  
pp. 87-108 ◽  
Author(s):  
Agyenim Boateng ◽  
Min Du ◽  
Yan Wang ◽  
Chengqi Wang ◽  
Mohammad F. Ahammad
Keyword(s):  
Interest Rates ◽  
Home Country ◽  
Emerging Market ◽  
Entry Mode ◽  
Government Support ◽  
Economic Policies ◽  
International Expansion ◽  
Content Type ◽  
The Impact ◽  
Expansion Behaviour

Purpose The purpose of this paper is to examine the trends, patterns and the impact of cultural and home country macroeconomic influences on Chinese cross-border mergers and acquisitions (CBM&A) as foreign entry strategy for the period of 1998-2011. Design/methodology/approach Using three regression models, namely, ordinary least squares, the random effects and fixed effects to examine the impact of home country macroeconomic and cultural factors on CBM&A outflows as an entry mode of Chinese firms. The authors check the robustness of the results using system GMM. Findings The findings suggest that CBM&A as a preferred mode of market entry provides a means for obtaining strategic resources to develop competitive advantages for the Chinese emerging market firms. The regression results indicate that home country macroeconomic and cultural variables, including gross domestic product (GDP), liquidity, interest rates, inflation, acquisitions in resource seeking sectors and cultural distance play an important role in explaining the trends of CBM&A outflows by the Chinese firms. Research limitations/implications The results imply that government support to emerging market multinational enterprises (EMEs) to acquire strategic assets and economic policies in the home country play an important role in shaping international expansion behaviour of EMEs through CBM&A. The study demonstrates that outward investments of EMEs are partly a function of the level of economic policies and government support at home. The limitation is that most of the Chinese CBM&A transactions took place in Asia/Pacific locations. Future studies appear warranted if new data become available. Originality/value The study demonstrates how the institutions, strategic asset seeking with government support and economic policies in the home country play important role in shaping international expansion behaviour of emerging market enterprises through CBM&A thereby contributing to the political economy literature and institutional theory. More importantly, the study shows that the level of economic policies and development such as GDP, money supply, interest rates, inflation of the home country are important for EME growth in the international market.

Growth Strategies of the New Multinationals

2019 ◽  
pp. 365-384
Author(s):  
Mauro F. Guillén ◽  
Esteban García-Canal
Keyword(s):  
Emerging Market ◽  
Conventional Wisdom ◽  
Growth Strategies ◽  
International Expansion ◽  
Speed Of Light ◽  
Distinctive Features ◽  
Emerging Market Multinationals ◽  
Global Competitiveness ◽  
Incremental Approach ◽  
The World

Emerging market multinationals have expanded around the world and upgraded their capabilities at the speed of light using aggressive growth strategies. This chapter argues that the success of these companies lies on new axioms of global competitiveness. It aims to answer two questions. First, do these firms share some common distinctive features that distinguish them from the traditional MNEs? Second, how have they been able to expand abroad at dizzying speed, in defiance of the conventional wisdom about the virtues of a staged, incremental approach to international expansion? Before being in a position to answer these questions, the established theory of the MNE is outlined, and the extent to which its basic postulates need to be re-examined is explored.

Sign in / Sign up

Export Citation Format

Share Document