International expansion of emerging market enterprises: A springboard perspective

Published on Jul 1, 2007in Journal of International Business Studies7.724
· DOI :10.1057/palgrave.jibs.8400275
Yadong Luo66
Estimated H-index: 66
(UM: University of Miami),
Rosalie L. Tung43
Estimated H-index: 43
(SFU: Simon Fraser University)
In this article, we present a springboard perspective to describe the internationalization of emerging market multinational corporations (EM MNEs). EM MNEs use international expansion as a springboard to acquire strategic resources and reduce their institutional and market constraints at home. In so doing, they overcome their latecomer disadvantage in the global stage via a series of aggressive, risk-taking measures by aggressively acquiring or buying critical assets from mature MNEs to compensate for their competitive weaknesses. We discuss unique traits that characterize the international expansion of EM MNEs, and the unique motivations that steer them toward internationalization. We further delineate peculiar strategies and activities undertaken by these firms in pursuit of international expansion, as well as internal and external forces that might compel or facilitate their propulsion into the global scene. We finally explain the risks and remedies associated with this international ‘springboarding’ strategy and highlight major issues meriting further investigation.
  • References (43)
  • Citations (1517)
📖 Papers frequently viewed together
485 Citations
408 Citations
522 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
#1John Child (University of Birmingham)H-Index: 39
#2Suzana Braga Rodrigues (University of Birmingham)H-Index: 19
This paper examines the patterns of, and motives for, internationalization by prominent market-seeking Chinese firms. Case studies of these firms indicate that they are seeking technological and brand assets to create a competitive position in international markets. While mainstream theory tends to assume that firms internationalize to exploit competitive advantages, Chinese firms are generally making such investments in order to address competitive disadvantages. They are engaging in 'inward' i...
771 CitationsSource
Over the two and a half decades of economic reform in China, two types of Chinese firms have consistently outperformed their peers. In the 1980s, it was the firms at the lower levels of the industrial hierarchy, the township and village enterprises that were closely monitored by local governments. In the 1990s and beyond, the top performers have been those Chinese firms that have formal relationships with foreign investors. While many studies on the economic reforms in China have focused on the ...
52 CitationsSource
This research proposes and tests a basic model of organizational learning that captures the process of knowledge transfer in international strategic alliances. Based on a cross-sectional sample of 147 multinationals and a structural equation methodology, this study empirically investigates the simultaneous effects of learning intent, learning capacity (LC), knowledge ambiguity, and its two key antecedents – tacitness and partner protectiveness – on technological knowledge transfer. In the intere...
430 CitationsSource
#1Kalman Kalotay (United Nations Conference on Trade and Development)H-Index: 14
In Central and Eastern Europe, outward foreign direct investment (FDI) has not yet become as a prominent factor in the region’s reintegration into the world economy as trade liberalisation used to be in the early 1990s or inward foreign direct investment is currently. In the terminology of the investment–development path, with the notable exception of the Russian Federation, the region is in stage 2, whereby inward flows are still growing faster than outward flows. This article argues that a com...
52 CitationsSource
#1Ping Deng (Maryville University)H-Index: 13
ince 1978, when it opened its doors to the world,China has achieved spectacular success in attract-ing foreign direct investment. In 2002, it sur-passed the US as the largest recipient of FDI in the world.However, investment has not been flowing in just onedirection. According to the World Bank (1997), in themid-1990s China was the largest outward investor amongdeveloping countries and the eighth largest supplier ofoutward investment among all countries. As
283 CitationsSource
#1Yadong LuoH-Index: 66
93 Citations
#1Wladimir Andreff (University of Paris)H-Index: 18
Abstract In the last decade, outward foreign direct investment (FDI) from transition countries (TCs) has emerged. The new multinational corporations (MNCs) from TCs are quite different from the former “red multinationals” (1), we describe the emergence of these new MNCs (2) and then provide econometric testing of the relationship between outward FDI and the level of economic development in home country that fits with TCs (3).
54 CitationsSource
#1Eric W. K. Tsang (NTU: Nanyang Technological University)H-Index: 39
Abstract This paper examines the foreign direct investment (FDI) behavior of Chinese family businesses (CFBs) from an organizational learning perspective. The discussion is based on a comparative case study of CFBs and non-CFBs in Singapore with respect to their investments in China. Compared with non-CFBs, CFBs generally use an informal and unstructured approach to FDI. They tend to send family members overseas to be in charge of key management positions. Owing to the highly centralized managem...
128 CitationsSource
This article describes the origins, and traces the subsequent evolution of the eclectic paradigm from the mid-1950s to the present day. It does so in the light of the changing characteristics of MNE activity and of the global economic scenario. The article concludes by asserting that the eclectic paradigm still remains a powerful and robust framework for examining contextual specific theories of foreign direct investment and international production.
825 CitationsSource
#1Alan M. RugmanH-Index: 58
Professor Alan Rugman is one of the world's leading academics in the field of international business and strategy. In The End of Globalization he argues that we are currently witnessing the end of globalization and draws on new research and analysis to argue that globalization never really happened anyway. Like Bartlett and Ghoshal's Managing Across Borders, this book is aimed at the market of practitioners and policy-makers, (not academics and theoreticians) showing them what the current state ...
285 Citations
Cited By1517
#1Juan Laborda (Charles III University of Madrid)
Last. Cristina Suárez (University of Alcalá)H-Index: 7
view all 3 authors...
Abstract This paper models how the business and financial cycles interact in firms' export activity. Specifically, we study the influence of macroeconomic variables on the decision to export and on the volume of exports, being controlled by firms' characteristics. A distinction is made between the firms' export activity in reaction to increases in external demand after improvements in national competitiveness, and firms' exporting in response to a reduction in aggregate internal demand. The deci...
#2Angelo NatalicchioH-Index: 7
Last. Vito AlbinoH-Index: 25
view all 3 authors...
#1Dominique Mazé (PUCP: Pontifical Catholic University of Peru)
#2Claude Chailan (EM Strasbourg Business School)H-Index: 4
Abstract In this paper, we show how international tenders act as defining moments in building asymmetric coevolution-based mechanisms between Chinese multinational enterprises and local institutions in developing African countries. We used a case study methodology to explore how three Chinese multinationals – Citic, Sinopec, and Chinalco – developed non-market relations with the institutions of three African countries, namely, Algeria, Gabon and the Republic of Guinea, both during and after the ...
Last. May Hu
view all 3 authors...
#1Wei Li (USYD: University of Sydney)H-Index: 5
#2Hans Hendrischke (USYD: University of Sydney)H-Index: 9
#1Liang Wang (USF: University of San Francisco)H-Index: 6
#2Haifeng Yan (ECUST: East China University of Science and Technology)
Last. William X. Wei (MacEwan University)H-Index: 6
view all 5 authors...
#2Ru-Shiun Liou (UT: University of Tampa)H-Index: 5
Last. Alan E. Ellstrand (UA: University of Arkansas)H-Index: 13
view all 3 authors...
1 CitationsSource