Competitive Dynamics Between Multinational Companies and Local Rivals in Emerging Markets

Abstract

Multinational Companies from Emerging Economies (EMNCs) have become key players in the global economy. EMNCs have started to operate in highly dynamic, competitive environments where they are faced with competition from multinational companies (MNCs) from developed economies. This study applied Mutlu et al.’s (2015) awareness–motivation–capability (AMC) framework to the airline industry to investigate how EMNCs outperform MNCs. The development of each round of Mutlu et al.’s framework was tested using secondary data sources that cover 16 years, from 2001 to 2016. A fourth round, relating to the determination of ‘who will be the market leader’, was added to the framework and tested. The findings demonstrate that firms’ awareness and capabilities evolve in each round to develop the competitive advantages required to enhance their market position. The complex nature of competition requires firms to analyse information constantly to define key influential factors and to build essential capabilities and resources to initiate an action strategy quickly. From a managerial perspective, it is important for managers to build a comprehensive view of the competition and understand how this competition is evolving over time, to develop capabilities, pursue new opportunities and predict competitors’ responses.

Indonesian Hotels’ Dynamic Capability under the Risks of COVID-19

“…These findings highlight the vital role of innovation norms in the adaptive creativity of employees (Russell and Russell 1992). Being aware of various changes is a necessary key in initiating strategic actions on time, and therefore requires good internal capabilities in responding to these changes (Al-Kwifi et al 2020). The ownership of open culture to innovation encourages creating an adaptive organization in sensing and seizing potential opportunities (Duarte Alonso et al 2020;Matysiak et al 2018).…”

What Do We Choose to Fly with Low-Cost Airlines: Thais’ Passenger Perspective

“…In the meantime, the tangibles of TAA and TLA should consider similar seat pitches. More importantly, safety and security are the priority in the air transport industry, and the airline should always be kept to a high standard (Al-Kwifi et al, 2020;Seo et al, 2020). Furthermore, the management team should consider the integration of the marketing mix 7Ps with…”

International marketing strategy of emerging market firms: the case of Bangladesh

“…We assume that the concept of the institutional void, that is, underdeveloped formal institutions and infrastructure that characterizes EMs (Boso et al , 2018), can influence how EM firms perform marketing activities and formulating marketing strategies. Al-Kwifi et al (2020) argue that governmental support for EM firms in host countries provides constructive environment and contributes to positive performance. The authors further suggest that EM firms analyze information, define impact factors and invest in required resources to develop their competitive capacity in international markets.…”