Extending the LLL framework through an institution-based view: Acer as a dragon multinational

Abstract

Mathews (Asia Pacific Journal of Management, 23(1): 5–27, 2006) argues for the importance of latecomer firms undertaking international expansion through the three pillars of resource linkage, leverage, and learning (LLL). We argue that these pillars can be discussed in terms of an institutional framework that explains how institutions shape resource access and economic actions. Despite their lack of capabilities vis-a-vis established multinationals, latecomers are not passive observers or recipients, but can be institutional entrepreneurs who are potentially reflexive enough to leverage their institutional linkages to acquire resources and develop learning activities for innovation, transformation, and internationalization. To illustrate our idea, we study the Taiwan-based dragon multinational, Acer, from 1976 to 2014. Three institutional blocks that underlie Acer’s engagement with institutional linkage, leverage, and learning are emphasized: the cultural system built around the norms of the Chinese family business; the political system defined by the distinct pattern of state-business relations in Taiwan; and a technological system constructed by multiple global players in the computer industry.