Emerging Market Firms’ Competitive Advantages and Internationalisation Patterns

Abstract

Emerging market firms are marked with their countries of origin. These influence the competitive advantages that emerging market firms can develop and the strategies they need to employ in order to do so. The chapter outlines the strategies that emerging market firms most frequently utilise in order to capitalise on the domestic capital market imperfections and develop their particular ownership advantages. It also highlights the knowledge-based advantages they can leverage despite experiencing significant knowledge gaps regarding foreign markets. It moreover lists the competitive advantages of emerging market firms stemming from relationship management. Finally, it describes the typical internationalisation patterns identified by past research for emerging market firms.