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Emerging Market Multinationals: Coopetition for Global Growth
Author(s) -
Kedia Ben L.,
Rhew Nicholas D.,
Gaffney Nolan T.,
Clampit Jack A.
Publication year - 2015
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.21758
Subject(s) - coopetition , internationalization , multinational corporation , competitor analysis , emerging markets , foreign direct investment , competition (biology) , business , industrial organization , liberalization , international trade , resource (disambiguation) , international business , international economics , economic geography , market economy , economics , marketing , finance , incentive , ecology , computer network , management , biology , computer science , macroeconomics
Since the dramatic geopolitical shift toward liberalization in the last century, emerging‐market multinational enterprises (EMNEs) have become major players in global markets and continue to account for an increasing share of global foreign direct investment (FDI) flows. Given this trend, the questions of how and why EMNEs pursue FDI deserve greater attention. This article builds on recent work that uses resource dependence theory (RDT) to explain EMNE internationalization strategies. We propose that EMNEs, while often resource deficient relative to their developed‐market competitors and, therefore, more dependent on others in the external environment, are uniquely positioned to overcome these deficiencies over time through simultaneous cooperation and competition—coopetition—with their global rivals and host‐ and home‐country governments. These propositions contribute to the EMNE internationalization literature by more fully incorporating RDT into current theories of internationalization, highlighting the importance of managing dependencies over time to maximize global growth. © 2015 Wiley Periodicals, Inc.