Home Country Underdevelopment And Internationalization Innovation-Based And Escape-Based Internationalization
COMPETITIVENESS REVIEW(2017)
摘要
Purpose - The purpose of this study is to use the rise of emerging-market multinationals as a vehicle to explore how a firm's country of origin influences its internationalization.Design/methodology/approach - This paper is a conceptual paper.Findings - We argue that the home country's institutional and economic underdevelopment can influence the internationalization of firms in two ways. First, emerging-market firms may leverage innovations made at home to cope with underdeveloped institutions or economic backwardness to gain a competitive advantage abroad, especially in other emerging markets; We call this innovation-based internationalization. Second, they may expand into countries that are more developed or have better institutions to escape weaknesses on these fronts at home; we call this escape-based internationalization.Research limitations/implications - Comparative disadvantages influence the internationalization of the firm differently from comparative advantage, as it forces the firm to actively upgrade its firm-specific advantage and internationalize.Practical implications - We explain two drivers of internationalization that managers operating in emerging markets can consider when facing disadvantages in their home countries and follow several strategies, namely, trickle-up innovation, self-reliant innovation, improvisation management, self-reliance management, technological escape, marketing escape, institutional escape and discriminatory escape.Originality/value - We explain how a firm's home country's comparative disadvantage, not just its comparative advantage, can spur firms its internationalization.
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关键词
Economic development, Emerging markets, Institutions, Multinationals, International business
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