Global Strategy and Emerging Markets

Abstract

We analyze the impact of the home country on the internationalization of firms from emerging markets. We introduce a framework that links the underdevelopment of emerging markets to firm internationalization via firms’ characteristics and strategies.  Specifically, we argue that an underdeveloped economy undergoing pro-market transformations and the underdeveloped pro-market institutions, the major characteristics of emerging markets, influence the ownership, capability and innovation of firms and these, in turn, drive their internationalization and success in global competition.