TY - JOUR
T1 - Contextualizing international strategy by emerging market firms
T2 - A composition-based approach
AU - Luo, Yadong
AU - Bu, Juan
N1 - Funding Information:
The authors are grateful to the editor and reviewers for their insightful suggestions. We also appreciate China Natural Science Foundation for their support (priority project # 71232010 ).
PY - 2018/4
Y1 - 2018/4
N2 - We present a composition-based logic toward international expansion by emerging market firms (EMFs) – firms that use compositional investment, compositional competition, and compositional collaboration to create a unique competitive advantage in global competition. This view explains how EMFs creatively adopt a composition-based international strategy, enabling them to compensate for their weaknesses while capitalizing on their strengths during global competition where they offer a competitive price-value ratio suited to mass global customers who are cost sensitive. We also explicated the working conditions (i.e., strategic resource-seeking motivation, subsidiary autonomy delegation, and cross-border sharing system) that fortify the outcome of composition. Using survey data from 201 EMFs, our analysis supports these key arguments. A composition-based lens provides a new understanding of why and how emerging market businesses can survive in international competition for some period of time without possessing traditionally defined monopolistic advantages.
AB - We present a composition-based logic toward international expansion by emerging market firms (EMFs) – firms that use compositional investment, compositional competition, and compositional collaboration to create a unique competitive advantage in global competition. This view explains how EMFs creatively adopt a composition-based international strategy, enabling them to compensate for their weaknesses while capitalizing on their strengths during global competition where they offer a competitive price-value ratio suited to mass global customers who are cost sensitive. We also explicated the working conditions (i.e., strategic resource-seeking motivation, subsidiary autonomy delegation, and cross-border sharing system) that fortify the outcome of composition. Using survey data from 201 EMFs, our analysis supports these key arguments. A composition-based lens provides a new understanding of why and how emerging market businesses can survive in international competition for some period of time without possessing traditionally defined monopolistic advantages.
KW - Composition-based strategy
KW - Emerging market firms
KW - International competition
UR - http://www.scopus.com/inward/record.url?scp=85012875338&partnerID=8YFLogxK
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U2 - 10.1016/j.jwb.2017.01.007
DO - 10.1016/j.jwb.2017.01.007
M3 - Article
AN - SCOPUS:85012875338
VL - 53
SP - 337
EP - 355
JO - Journal of World Business
JF - Journal of World Business
SN - 1090-9516
IS - 3
ER -