New Challengers in a Global Game: Reflections on the Internationalization of Emerging Economies and Firms

Abstract

Internationalization at the country and firm level has assisted the growth and sustained expansion of developed economies and their firms over the last couple of centuries. Consequently, the understanding of internationalization patterns and theories explaining the causes, process and effects of firm internationalization have reflected the perspectives of advanced economies. In recent years, the internationalization process has engaged, on an ever growing basis, countries at a lower level of economic development that are driven by varying political agendas and state involvement in international activities with the objective to advance their national economy. On the one hand, the internationalization of emerging economies and firms has brought about imitative behaviour through the application of some conventional internationalization approaches and practices. On the other hand, many emerging economies and firms have reshaped the global business arena by applying new, unexpected strategies and tactics towards internationalization, accelerating its pace and getting international recognition over a short period of time. This development has challenged international business scholars to explain the phenomenon of the internationalization of emerging economies and firms. There is strong evidence that the recent achievements of many emerging economies has been continuously affecting the positions of developed countries in the world’s economy. Thus the internationalization of emerging economies and firms has posed questions concerning the omnipotent significance of internationalization patterns and models pertaining to developed economies and their firms.