Export learning advantages through supplying multinational enterprises in emerging markets: a conceptual model

Abstract

Previous research and available international trade data indicate that supplying multinational enterprises (MNEs) forms an important avenue for emerging markets increased involvement in export markets especially those previously dominated by MNEs. However, little is known at firm level how these forms of inter-firm transactions translate into export learning advantages for emerging market firms (EMFs) that are new to international business. Building on the relational embeddedness framework, RBV and dynamic capability framework, this paper presents a conceptual model of export learning advantages of EMFs supplying MNEs. It is argued that the duration of the supplying relationship in these inter-firm exchanges as well as the level multiplexity of these ties would more likely facilitate than inhibit export learning advantages for the less internationally experienced EMFs when they possess differentiation competences as opposed to low-cost competences. Similarly, high levels of absorptive capacity are observed as critical for the less internationally experienced EMFs supplying MNEs to effectively identify, capture and sustain export opportunities beyond the initial supplying requirements of the focal MNE customer(s).