International expansion of emerging market enterprises: A springboard perspective

Abstract

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. Journal of International Business Studies (2007) 38, 481–498. doi:10.1057/palgrave.jibs.8400275

The impact of leadership on organizational ambidexterity and employee psychological safety in the global acquisitions of emerging market multinationals

“…Over the last few decades, acquisitions by emerging-market multinationals' (EMMs) have seen a rapid increase (Bonaglia, Goldstein & Mathews, 2007;Demirbag, Glaister & Tatoglu;Luo & Tung, 2007;Gammeltoft, 2008;Aybar & Ficici, 2009;Gubbi, Aulakh, Ray, Sarkar & Chittoor, 2010;UNCTAD, 2011;Kohli & Mann, 2012); such growth kept gathering speed during the financial crisis years, despite the value of assets in developed economies becoming greatly depreciated (Rao- Nicholson & Salaber, 2015). In addition to their typical resource-and market-seeking motives, EMMs also undertook cross-border acquisitions to access high-technology and managerial practices and processes (Huang & Khanna, 2003;Purushothaman, 2004;Kumar, 2008;Gubbi et al, 2010;Hattari & Rajan, 2010).…”

Teoria Institucional E Modos De Entrada De Multinacionais De Países Emergentes

“…O recente movimento de internacionalização de empresas de países emergentes, associado ao crescimento dos países onde essas companhias estão sediadas, tem despertado o interesse dos estudiosos de negócios internacionais para a escassez de estudos sobre o tema (Khanna & Palepu, 2006;Luo & Tung, 2007). Além disso, os autores divergem quanto a se as características dos processos de internacionalização das multinacionais de países emergentes (EMNEs, do inglês Emerging Market Multinational Enterprises) se assemelham ou não àquelas de multinacionais de países desenvolvidos (Ramamurti, 2012;Rugman, 2009).…”

Desempenho de fusões e aquisições cross border: análise empírica do caso brasileiro

“…Therefore, international M&As allow companies, particularly from emerging countries, to gain access to key strategic resources that might not be available in their domestic markets, thus improving their overall competitiveness (Luo & Tung, 2007). Moreover, the possible transfer of status and reputation from the acquiree to the acquirer company helps the latter overcome the typical liability of foreignness and newness problems that it faces in global markets (Eden & Miller, 2004 (Seth, Song & Petit, 2000).…”

“…This analysis holds that more advanced institutional environments, with greater competition and consumer-focused markets, can offer a superior learning potential for international expansion strategies (Luo & Tung, 2007).…”

“…Cross-border merger and acquisitions (M&As) are an increasingly significant phenomenon in contemporary society (Luo & Tung, 2007). The theoretical foundations of cross-border F&A research were traditionally based on economic perspectives, such as transaction cost economics and the eclectic paradigm (owner-ship-location-internalization advantages) (Shimizu, Hitt, Vaidyanathc, & Pisano, 2004).…”