Learning-by-doing in emerging market multinationals: Integration,trial and error,repetition, and extension |
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| Affiliation: | 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. Department of Management, Bologna, Italy;2. Department of Industrial and Information Engineering & Economics, University of L’Aquila, Italy;1. Department of Business Administration, Enterprise & Social Development Research Centre, Hong Kong Shue Yan University, North Point, Hong Kong;2. Department of Management, The Chinese University of Hong Kong, Shatin, N.T., Hong Kong;3. School of Business, Renmin University of China, Beijing, China;1. Sun Yat-Sen Business School, Sun Yat-Sen University, Guangzhou, Guangdong Province, China;2. Texas Christian University, Fort Worth, TX 76129, USA;3. City University London, London, UK;4. Vienna University of Economics and Business, Vienna, Austria;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. Assistant Professor, Poznań University of Economics and Business, al. Niepodległości 10, 61-875 Poznań, Poland;2. Associate Professor, International Business & Strategy Group, D’Amore-McKim School of Business, Northeastern University, 360 Huntington Avenue, 315C Hayden Hall, Boston, MA 02115, United States |
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| Abstract: | We analyze learning-by-doing and how emerging market multinationals use it to upgrade their capabilities. Building on an in-depth case study, we present two novel arguments. First, we clarify the concept of learning-by-doing by identifying four distinct processes in which learning-by-doing occurs: Integration, whereby the firm incorporates external knowledge and coordinates multiple sources of knowledge to undertake an activity; trial and error, whereby the firm attempts a new activity until it succeeds; repetition, whereby the firm improves the activity by undertaking it multiple times; and extension, whereby the firm takes on a larger and more complex activity. Second, we extend our understanding of how the country of origin influences firm behavior by explaining how particular characteristics of emerging markets (few specialized providers, relative knowledge isolation, rapid market growth, and increasing consumer sophistication) strengthen the relationships between the four learning-by-doing processes and the upgrading of capabilities to international levels. |
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| Keywords: | Learning-by-doing Capabilities Upgrading Emerging countries Case study CSCEC |
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