Internationalization of emerging multinationals: the Latin American case

Purpose – The purpose of this paper is to develop an analytical framework that challenges the condescending view of multinationals of emerging countries. In this paper, it is showed that emerging multinational companies (EMNCs) developed valuable resources that leveraged their internationalization strategies. Design/methodology/approach – An exploratory approach was used to investigate the internationalization strategies of EMNCs. A qualitative study was built on secondary data sources, particularly analysis of cases of the internationalization of Latin American companies. Findings – The internationalization strategies deployed by EMNCs are similar to the strategies of traditional multinationals (firms of developed countries). Similarly, EMNCs exploit, acquire or defend their resources in foreign markets. Additionally, the selection of each strategy depends on the availability, transferability and substitutability of the resources involved in the internationalization. Research limitations/implications – The traditional approaches that study the role of resources in the internationalization of the EMNCs have some shortcomings. It is worth conducting additional research including the approach developed here to advance in the comprehension of the behavior of EMNCs. Practical implications – Managers must identify and develop key resources to invest abroad. Additionally, managers need to take into account the characteristics of the resources of their firms to select an adequate strategy abroad. Originality/value – This paper shows that EMNCs are not resource laggards. Consequently, theoretical and empirical evidence is provided to advance the development of comprehensive theories of the internationalization of EMNCs. This paper offers academics and practitioners with a new focus to analyze the internationalization of EMNCs which are recognized as a driving force of the global economy.