EMNE emerging vs triad Flashcards
(13 cards)
How do EMNE strategies contrast with those of Triad MNEs?
The pathways and strategies of EMNEs sharply contrast with those of traditional Triad-based MNEs.
What is the typical internationalisation process for Triad MNEs?
Triad MNEs typically follow a gradual internationalisation process, consistent with the Uppsala model, where firms first build domestic capabilities before cautiously expanding to nearby or culturally similar markets.
What do Triad MNEs rely on for success abroad?
They often rely on technological superiority, strong institutional support, and global brand recognition to succeed abroad.
How do EMNEs internationalise differently from Triad MNEs?
In contrast, EMNEs frequently pursue leapfrogging strategies, internationalising quickly and aggressively to overcome domestic constraints and competitive disadvantages.
What motivates EMNEs to internationalise aggressively?
Motivated by survival, legitimacy-seeking, and the need to access strategic assets, EMNEs often bypass incremental expansion.
What home advantages do EMNEs leverage when expanding internationally?
Their home advantages—such as low production costs, government support, and large domestic markets—are leveraged to gain footholds in foreign economies.
What are the four EMNE strategies according to lecture frameworks?
Lecture frameworks categorize EMNE strategies into four types: local optimisers, global consolidators, low-cost partners, and first movers.
Who are examples of local optimisers?
Local optimisers tailor low-cost business models for other developing markets, as seen in Mahindra & Mahindra’s expansion.
Who are examples of global consolidators?
Global consolidators like Tata Steel use acquisitions to scale rapidly, acquiring firms such as Corus in the UK.
Who are examples of low-cost partners?
Low-cost partners like Infosys and Wipro excel in delivering cost-effective service solutions globally.
Who are examples of first movers?
First movers like Huawei disrupt mature markets by leveraging home-scale advantages and aggressive innovation.
What is the ultimate reason EMNEs internationalise?
In essence, while Triad firms expand primarily for market growth, EMNEs internationalise to survive, gain strategic assets, and enhance their global competitiveness—flipping the assumptions of traditional IB theory on their head.
