Host countries' level of development and internationalization from emerging markets : a typology of firm strategies

dc.contributor.authorBarnard, Helena
dc.contributor.emailbarnardh@gibs.co.zaen_ZA
dc.date.accessioned2022-03-14T08:24:53Z
dc.date.issued2021-09
dc.description.abstractHost countries' level of development affects internationalization from emerging markets. The challenges and opportunities firms face, the resources and assets they need, and ultimately how they internationalize are shaped by whether firms internationalize to developing or developed countries, and whether they operate within a single or across multiple levels of host country development. I propose a typology of four firm strategies to deal with different host location types: local optimization, global consolidation, brokering and niche filling. Local optimization happens when firms seek out less competitive markets in similar and lower income countries, managing institutional and infrastructural challenges through collective action. Firms seeking global consolidation manage their limited capabilities and legitimacy through mergers and acquisitions as they springboard from low to high income host locations. Suppliers in global value chains and the customer-facing partners of advanced multinationals in low income countries are arbitrageurs between high and low income countries. They use brokering to avoid head-on competition with advanced multinationals, but to grow, firms must retain their primary relationships while developing non-competing relationships. Niche filling involves firms targeting knowledge-intensive offerings at lucrative high income markets, managing their smaller resource base vis-à-vis competitors through non-equity or digitally-enabled modes of internationalization. Firms can simultaneously use different strategies for different types of foreign markets.en_ZA
dc.description.departmentGordon Institute of Business Science (GIBS)en_ZA
dc.description.embargo2023-01-22
dc.description.librarianhj2022en_ZA
dc.description.urihttps://www.elsevier.com/locate/intmanen_ZA
dc.identifier.citationBarnard, H. 2021, 'Host countries' level of development and internationalization from emerging markets: A typology of firm strategies', Journal of International Management, vol. 27, no. 3, art. 100828, pp. 1-17, doi : 10.1016/j.intman.2021.100828.en_ZA
dc.identifier.issn1075-4253 (print)
dc.identifier.issn1873-0620 (online)
dc.identifier.other10.1016/j.intman.2021.100828
dc.identifier.urihttp://hdl.handle.net/2263/84474
dc.language.isoenen_ZA
dc.publisherElsevieren_ZA
dc.rights© 2021 Elsevier Inc. All rights reserved. Notice : this is the author’s version of a work that was accepted for publication in Journal of International Management. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. A definitive version was subsequently published in Journal of International Management, vol. 27, no. 3, art. 100828, pp. 1-17, 2021. doi : 10.1016/j.intman.2021.100828.en_ZA
dc.subjectGlobal value chain (GVC)en_ZA
dc.subjectDigitalen_ZA
dc.subjectMergers and acquisitions (M&As)en_ZA
dc.subjectEmerging market multinational corporation (EMNC)en_ZA
dc.subjectNon-equity modes of internationalizationen_ZA
dc.titleHost countries' level of development and internationalization from emerging markets : a typology of firm strategiesen_ZA
dc.typePostprint Articleen_ZA

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