Contextualizing international strategy by emerging market firms: A composition-based approach

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 creati...

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Main Authors: Luo, Yadong, Bu, J.
Format: Journal Article
Published: Pergamon 2015
Online Access:http://hdl.handle.net/20.500.11937/53329
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author Luo, Yadong
Bu, J.
author_facet Luo, Yadong
Bu, J.
author_sort Luo, Yadong
building Curtin Institutional Repository
collection Online Access
description 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.
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spelling curtin-20.500.11937-533292018-04-19T03:57:32Z Contextualizing international strategy by emerging market firms: A composition-based approach Luo, Yadong Bu, J. 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. 2015 Journal Article http://hdl.handle.net/20.500.11937/53329 10.1016/j.jwb.2017.01.007 Pergamon restricted
spellingShingle Luo, Yadong
Bu, J.
Contextualizing international strategy by emerging market firms: A composition-based approach
title Contextualizing international strategy by emerging market firms: A composition-based approach
title_full Contextualizing international strategy by emerging market firms: A composition-based approach
title_fullStr Contextualizing international strategy by emerging market firms: A composition-based approach
title_full_unstemmed Contextualizing international strategy by emerging market firms: A composition-based approach
title_short Contextualizing international strategy by emerging market firms: A composition-based approach
title_sort contextualizing international strategy by emerging market firms: a composition-based approach
url http://hdl.handle.net/20.500.11937/53329