Emerging Economy Multinationals: Successes and Challenges

Abstract

The presence of multinational firms is now a widespread phenomenon due to the processes involved in the initial internationalization and later globalization of their business operations and market servicing. The rise of multinationals from emerging economies has been continuously redefining the scene of international business. Historically, multinational firms originating from the developed part of the world have had entrenched, dominant and, in most cases, fully controlling positions in global business activities and market operations. Recent political and economic changes have resulted in a crisis in the world system (Wallerstein, 2004), and consequently the dominance of the economies and firms of the developed world has been undermined. Within a short time span, new firms — unknown latecomers to the global marketplace - have earned well-established positions in the world markets (Mathews, 2002; Child and Rodrigue s, 2005), competing successfully with the dominant global players (Marinov and Marinova, 2012), even displacing them from their leading positions. Being resilient, fast learning and quick in adapting to change, the emerging economy multinationals (EEMs) have so far coped successfully when confronted by incumbent players due to the competitive advantages they have developed (Williamson et al, 2013) and the hardships faced by the incumbents due to the global economic slump (Marinov and Marinova, 2013).