A Framework for Understanding International Diversification by Business Groups From Emerging Economies

Experience of emerging market firms: The role of cognitive bias in developed market entry and survival

“…However, some emerging market firms have entered developed markets (e.g., Western Europe) (Dunning/Narula 1996), but not without encountering substantial challenges (Bartlett/Ghoshal 2000). Emerging market firms must compete against developed market firms which normally have richer resource portfolios (Hoskisson et al 2004). Poorly developed institutions in emerging markets provide weak bases for nurturing the financial, organizational and technological resources that emerging market firms need in order to vol.…”

International diversification and firm performance in Mexican firms: A curvilinear relationship?

“…The institutional environment in emerging markets has made it difficult for firms to develop the necessary managerial and technological competence to operate in foreign markets, especially developed markets (Thomas, 2001). Therefore, emerging market firms enter foreign markets to acquire resources as well as to exploit resources (Hoskisson et al, 2004). At the same time, many of the largest emerging market firms have protected home market positions; they have slack resources and can therefore afford to incur short-term losses for learning purposes.…”

What they learned from the crash: A comparison of Korean firms’ FDI before and after the 1997 financial crisis

“…Many emerging-market MNEs go abroad to acquire strategic assets, and hence R&D intensity might not have played a statistically significant role affecting FDI. In this vein, Hoskisson et al (2004) also argued that MNEs located in emerging economies need a different framework on international expansion in order to understand the distinction with MNEs from developed economies.…”