The internationalization of emerging market multinationals: An alternative typology Hsu, Ho-Wei University College London, Student Academia Sinica, Research Assistant Email:
[email protected] Paper presented at the 6th Copenhagen Conference on: 'Emerging Multinationals': Outward Investment from Emerging Economies, Copenhagen, Denmark, 11-12 October 2018 1 Abstract: The paper introduces a new and augmented taxonomy of internationalization strategy and it is created by examining the country- and firm-specific advantages leveraged and their global value chains participation. The taxonomy includes four types of strategies: Home Country Advantage Exploiter, Emerging Market Optimizer, Value Chain Climber, and Industry Leader. Each strategy relies on a different combination of country- and firm-specific advantages and results in a different mode of global value chain participation. Each category is accompanied by a case study. The four companies included in this project are: Tung Thih, Giant, Hisense, and Huawei. By developing a multi-dimensional taxonomy of strategy that is tailored to the circumstances of emerging economies, the internationalization process of multinational enterprises from these regions can be better understood. 2 INTRODUCTION Driven by economic growth, trade liberalization, and globalization, enterprises from the emerging economies have achieved remarkable success in recent years. Some of them are integral components of the value chains of big Western multinationals and others have become leading players, pioneering advanced technologies, design, and engineering. Companies from emerging economies such as Taiwan, China, Russia, and Brazil have achieved impressive growth and garnered attention as major players in the global business arena. Despite recent slowdown in the global markets, emerging market multinationals are growing faster than their counterparts from developed markets.