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Emerging market multinational companies’ evolutionary paths to building a competitive advantage from emerging markets to developed countries
Institution:1. The Washburn Chair Professor of International Business and Marketing, Temple University, The Fox School of Business, 1801 Liacouras Walk, 559 Alter Hall (006-14), Philadelphia, PA 19122, United States;2. Assistant Professor, San Jose State University, Lucas College and Graduate School of Business, School of Global Innovation and Leadership, One Washington Square, San Jose, CA 95192-0164, United States;1. Université de Lorraine and Ecricome Universa, Nancy, France;2. Research Department, Central Bank of Albania, Sheshi “Skënderbej”, nr. 1, Tiranë, Albania;3. ICN Business School, 13 Rue Michel Ney, 54000 Nancy, France;1. Centre for International Business, Leeds University Business School, University of Leeds, Leeds, LS2 9JT, United Kingdom;2. Auckland University of Technology, Auckland, New Zealand;3. University of Exeter Business School, Exeter, EX4 4PU, United Kingdom;4. Director, James E. Lynch India and South Asia Business Centre, Leeds University Business School, University of Leeds, Leeds, LS2 9JT, United Kingdom;1. Royal Holloway, University of London, School of Management, Egham Hill, Egham, TW20 0EX, UK;2. Northeastern University, D’Amore-McKim School of Business, 360 Huntington Avenue, 316E Hayden Hall, Boston, MA 02115, USA;1. Kansas State University, College of Business Administration, Department of Management, 3091 Business Building, 1301 Lovers Lane, Manhattan, KS 66506, United States;2. University of Memphis, Fogelman College of Business and Economics, Department of Management, 220 Fogelman Executive Center, Memphis, TN 38152, United States;3. University of Arkansas, Sam M. Walton College of Business, Department of Management, 402 Business Building, Fayetteville, AR 72701, United States;1. Department of Marketing and Management, Texas A&M University-Central Texas, 1001 Leadership Place, Killeen, TX 76549, United States;2. Cotsakos College of Business, William Paterson University, 1600 Valley Road, Wayne, NJ 07470, United States;3. Robert B. Willumstad School of Business, Adelphi University, Garden City, NY 11530-0701, United States
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.
Keywords:Emerging market multinational companies (EMNCs)  Competitive advantage  Acquisitions  Innovation capabilities  Knowledge sharing and learning  Qualitative research  Historical method
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