International expansion of emerging market enterprises: A springboard perspective

Yadong Luo, Rosalie L. Tung

Research output: Contribution to journalArticle

1314 Citations (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)481-498
Number of pages18
JournalJournal of International Business Studies
Volume38
Issue number4
DOIs
StatePublished - Jul 19 2007

Fingerprint

Industry
Propulsion
Emerging markets
Multinational enterprises
International expansion
Internationalization
Assets
Remedies
Strategic resources
Disadvantage
Multinational corporations
Emerging market multinationals
Risk taking
International strategy

Keywords

  • Emerging market multinationals
  • International expansion
  • Springboard

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management of Technology and Innovation
  • Strategy and Management

Cite this

International expansion of emerging market enterprises : A springboard perspective. / Luo, Yadong; Tung, Rosalie L.

In: Journal of International Business Studies, Vol. 38, No. 4, 19.07.2007, p. 481-498.

Research output: Contribution to journalArticle

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