Uncommoditizing strategies by emerging market firms

Published on Aug 10, 2018in The Multinational Business Review
· DOI :10.1108/MBR-07-2017-0051
Alvaro Cuervo-Cazurra31
Estimated H-index: 31
(Northeastern University),
Jorge Carneiro (Fundação Getúlio Vargas)+ 6 AuthorsWilliam Newburry19
Estimated H-index: 19
(Florida International University)
Abstract
Purpose This paper aims to analyze how emerging market firms upgrade their capabilities by focusing on “uncommoditizing strategies” that enable them to achieve levels of international competitiveness beyond the comparative advantages of their home countries and serve markets with premium pricing, quality and reputation of products. Design/methodology/approach In this paper, the authors studied 18 Latin American companies across six countries. Latin America represents an ideal setting because many of these countries have traditionally developed using natural resource endowments, and their firms have tended to rely on these in their internationalization. To facilitate the analysis of each case and the comparisons across cases, the authors used the same analytical framework for the companies, identifying the sources of differentiation and cost efficiency strategies that enabled these firms to upgrade their capabilities and compete on the basis of premium pricing, quality and reputation. Findings The analysis identified a general framework that represents an abstraction of the actions taken by these companies over time. The proposed model consists of three main elements used to pursue uncommoditizing strategies: tropicalized innovation, global efficiency and coordinated control. Originality/value Recent research on emerging market firms has shown interest in how these firms upgrade their capabilities. This paper contributes to this stream of research by providing an overarching framework that not only bridged previous narrower studies but also explained how firms can develop uncommoditizing strategies to upgrade their capabilities. Further, this paper helps managers by providing a comprehensive yet succinct overview of the main strategies that they can use to help their firms to achieve international competitiveness.
  • References (45)
  • Citations (0)
Cite
References45
Published on Jan 1, 1999in Harvard Business Review 4.37
Niraj Dawar16
Estimated H-index: 16
,
Tony Frost1
Estimated H-index: 1
231 Citations
Published on Mar 1, 2007in Harvard Business Review 4.37
Pankai Ghemawat1
Estimated H-index: 1
With the globalization of production as well as markets, you need to evaluate your international strategy. Here's a framework to help you think through your options. by Pankai Ghemawat.
117 Citations
Published on Nov 13, 2012
Mauro F. Guillén31
Estimated H-index: 31
,
Esteban García-Canal17
Estimated H-index: 17
Seize the advantage in the global war for market share. It is the winner of the 2013 Small Business Book Award - Top 10 Overall. The newest economic behemoth, China, is snatching market share from the U.S., Japan, and Europe at an alarming rate. But China isn't alone. The world's largest producers of biofuel, meat, consumer electronics, regional jets, baked goods, candy, and many other products are all emerging market multinationals (EMMs). And industries poised to be taken over by EMMs include ...
32 Citations
Published on Jan 1, 2014
Alvaro Cuervo-Cazurra31
Estimated H-index: 31
,
Ravi Ramamurti17
Estimated H-index: 17
Foreword 1. Introduction Alvaro Cuervo-Cazurra and Ravi Ramamurti Part I. EMNCs in Historical Perspective: What Is New?: 2. Theoretical debates on multinationals from emerging economies Yair Aharoni 3. What does history add to EMNC research? Andrew Godley Part II. Unique Capabilities of EMNCs: Do They Exist?: 4. Modern international business theory and emerging market multinational companies Alan M. Rugman and Quyen T. K. Nguyen 5. The limits of 'new' multinational enterprises: institutions, sys...
51 Citations Source Cite
Published on Apr 28, 2010
Tarun Khanna40
Estimated H-index: 40
,
Krishna G. Palepu33
Estimated H-index: 33
Table of contents Chapter One: Introduction Chapter Two: The Nature of Institutional Voids in Emerging Markets Chapter Three: Spotting and Responding to Institutional Voids Chapter Four: Exploiting Institutional Voids as Business Opportunities Chapter Five: Multinationals in Emerging Markets Chapter Six: Emerging Giants: Competing at Home Chapter Seven: Emerging Giants: Going Global Chapter Eight: The Emerging Arena
348 Citations
Published on Aug 1, 2012in Global Strategy Journal 2.12
Alvaro Cuervo-Cazurra31
Estimated H-index: 31
(College of Business Administration)
I analyze how the study of developing country multinational companies (DMNCs) can help extend theory. The renewed interest in DMNCs has generated a ‘Goldilocks’ debate, with one camp arguing that the analysis of DMNCs is ‘hot’ and requires new theory, another camp arguing that it is ‘cold’ and no new theory is required, and a third camp arguing that it is ‘just right’ and it can be used to extend theory. I follow this third camp and argue that the unique conditions of developing countries influe...
224 Citations Source Cite
Published on Jun 8, 2012
Amitava Chattopadhyay26
Estimated H-index: 26
,
Rajeev Batra29
Estimated H-index: 29
,
Ayşegül Özsomer15
Estimated H-index: 15
Breakthrough strategies for emulating or competing with your newest and toughest threat: innovative companies in emerging-market nations Western organizations are quickly losing influence to emerging market multinationals, as evidenced by such developments as Tata Motors's acquisitions of Land Rover and Jaguar; Lenovo's purchase of IBM's ThinkPad business; HTC's stature as the fourth largest global smartphone manufacturer; Haier's 5% global appliance market share; and LG, Samsung, and Hyundai ri...
22 Citations
Published on Aug 1, 2012in Global Strategy Journal 2.12
Snehal Awate4
Estimated H-index: 4
(Temple University),
Marcus Møller Larsen8
Estimated H-index: 8
(Copenhagen Business School),
Ram Mudambi41
Estimated H-index: 41
(Temple University)
Emerging economy multinationals (EMNEs) are catching up with advanced economy MNEs (AMNEs) even in emerging, high technology industries, where their knowledge-based disadvantages are most severe. We explain this phenomenon by distinguishing between output and innovation capabilities. Successful EMNEs' focus on output capabilities need not facilitate innovation catch-up. We compare the knowledge bases of an industry-leading AMNE and a fast-follower EMNE using patent data, buttressed by qualitativ...
113 Citations Source Cite
Published on Jan 1, 2005in Harvard Business Review 4.37
Thomas H. Davenport45
Estimated H-index: 45
It's all very well to be king, compassionate, and charismatic. But the most crucial predictor of executive success has nothing to do with personality or style. It's brainpower. Here's how to find those people with the sheer intelligence to become business stars.
375 Citations
Published on Jan 8, 2002in World Bank Publications
David de Ferranti5
Estimated H-index: 5
,
Guillermo Perry15
Estimated H-index: 15
+ 1 AuthorsWilliam Maloney1
Estimated H-index: 1
The study questions whether, after a decade of remarkable progress in trade reform, Latin America and the Caribbean really integrates into the global market, offering a promising rapid growth, and good jobs for its workers. For despite the incidence of the loosely called "knowledge economy", the concern prevails that most countries' rich natural resources, still are the determining factor for exports. Policy recommendations include fostering openness to trade, market access, and foreign direct i...
161 Citations Source Cite
Cited By0