Effective international expansion strategies of emerging countries: the strategies that helped Arçelik

Abstract

PurposeThis paper aims to present the case study of Arçelik, which has become Turkey's leading manufacturer and exporter of home appliances, as a means of offering insight into why, how and with what results companies from developing countries expand internationally.Design/methodology/approachPrimary data have been drawn from in‐depth interviews conducted with senior executives and industry experts, and this has been based on a statistical analysis of the export and international strategies of Turkish home appliance and television set industry.FindingsThe evidence indicates that international expansion may buffer a firm against fluctuations of demand in its home market and provide opportunities for growth. Difficulties faced by a later arrival from a developing country are greater than established rivals, and a developing country firm will have to rely on different resources and different operational strategies in developed vs developing markets.Research limitations/implicationsEven though one case cannot yield general conclusions, it may indicate fruitful theoretical directions. This study raises issues worthy of further investigation. On the outset, it would be useful to apply the four propositions to more Turkish MNEs in order to test the robustness of the conclusions.Practical implicationsThe study has important implications for companies from developing countries. First, international expansion appears to be a viable means of offsetting home‐market volatility for emerging‐country firms. Second, international expansion is still predicated on significant investments in firm‐specific advantages and their development may shorten the internationalization process.Originality/valueThe report contributes to knowledge in the area of international expansion of companies from developing countries by providing evidence on how one company has achieved a world position in a highly competitive market through selective use of quality, innovation, and branding based on the competitive position that is available in each of its chosen markets. In particular, it contributes to the limited evidence on the international expansion of Turkish companies at the present time.