Emerging market multinational companies’ evolutionary paths to building a competitive advantage from emerging markets to developed countries

Masaaki Kotabe, Tanvi Kothari*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

94 Citations (Scopus)

Abstract

One significant emerging phenomenon of global competition is the increasing number of Emerging Market Multinational Companies (EMNCs) that have survived and succeeded in the constraining institutional environments in their home turfs and are now participating in the global marketplace. However, despite the growing literature, our understanding of the factors that influence EMNCs’ competitive advantage is limited. We conduct a historical longitudinal analysis of sixteen companies originating from key emerging markets viz. India and China. Our findings suggest that EMNCs’ evolutionary paths to building competitive advantage from their home market to the developed countries is, on one-hand, based on the EMNCs’ ability to acquire resources and absorb them to build their own advantage. On the other hand, it is also based on EMNCs’ ability to find new market niches and to enhance their innovation capabilities to overcome the liability of emergingness.

Original languageEnglish
Pages (from-to)729-743
Number of pages15
JournalJournal of World Business
Volume51
Issue number5
DOIs
Publication statusPublished - 2016 Sep 1
Externally publishedYes

Keywords

  • Acquisitions
  • Competitive advantage
  • Emerging market multinational companies (EMNCs)
  • Historical method
  • Innovation capabilities
  • Knowledge sharing and learning
  • Qualitative research

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

Fingerprint

Dive into the research topics of 'Emerging market multinational companies’ evolutionary paths to building a competitive advantage from emerging markets to developed countries'. Together they form a unique fingerprint.

Cite this