Description
How do firms from emerging economies strive for the internationalization of their business? This comprehensive two-volume collection tackles this question by taking a closer look at underexplored issues, including bottom of the pyramid (BoP) business models, value creation and co-creation, employee commitment and the ‘born global’ concept. Taking both a geographic and thematic approach to the topic, the first volume addresses universal challenges such as inclusive innovation, the ethics of corporate leadership, and knowledge management, and also places a special emphasis on China. Providing an overview of the strategies and operations involved in internationalizing Chinese firms, this book is an essential read for those researching emerging markets and globalization in general, as well as Asian Business more specifically. Marin A. Marinov is Professor of International Business at Aalborg University, Denmark. His research interests include internationalisation, multinational firms and business development in emerging economies, and business policy and strategy. He has consulted for numerous multinational firms and national governments and is joint Series Editor of Palgrave Studies of Internationalization in Emerging Markets. Svetla T. Marinova is Professor of International Business at Aalborg University, Denmark. Her research revolves around internationalization and the role of institutions, as well as strategy of multinational firms from emerging economies. Having published over 70 papers in scholarly journals and edited seven academic books, Svetla is the joint Series Editor of Palgrave Studies of Internationalization in Emerging Markets. Jorma A. Larimo is Professor of International Marketing at the Faculty of Business Studies, University of Vaasa, Finland. His main research areas are the internationalization of SMEs, acquisition and international joint venture strategies and performance, and entry and marketing strategies in Central and Eastern European countries. Tiina Leposky is a Post-Doctoral Researcher at the University of Vaasa, Finland, where she studies value creation in new service development and digital business, and agile product development and business models in the context of the Industrial Internet. Tiina has worked in various multinational companies in Europe with the aim to make businesses more service and solutions oriented. Chapter 1: International Business and Emerging Economy Firms: Present Characteristics and Future Trends by Marin A. Marinov, Svetla T. Marinova, Jorma A. Larimo and Tiina Leposky Abstract: The purpose of this introductory chapter is to set up the scene and prepare the reader for the issues that various chapters of the book address. It includes issues such as, the dynamics with which the environments in various emerging economies change as well as their implications for the functioning of firms originating from such contexts. The chapter also clarifies the new trends in the emerging economy firms’ internationalisation, specifies the features of international marketing of such firms in relation to targeting customer at the bottom of the pyramid through value creation and co-creation among variety of other issues. It concludes with an overall perspective of the content of the book. Part One: Common Issues in the Internationalisation of Emerging Economy Firms Chapter 2: Multinational Enterprise and Inclusive Innovation at the Bottom of the Pyramid: A Systematic Review by Sina Mortazavi, Igor Laine, Anne Quarshie, Juha Vtnen, and Suraksha Gupta Abstract: This chapter reviews the literature on inclusive innovation from the perspective of multinational enterprise. The concept of inclusive innovation (any innovation that integrates otherwise marginalised groups of people into economic processes) is seen as a solution for otherwise excluded members of our society to be integrated into some aspect of the innovation. The most populous, but also the poorest markets of economically and socially excluded people are usually referred to as the bottom of the pyramid (BoP). While poverty and social inequality are the grand challenges for our society, we believe that inclusive innovation initiatives led by multinationals can be a part of a solution for the BoP markets. Being interested both in fostering innovation and developing new markets, multinational enterprises seem to have not only an intrinsic motivation but also required resources for the development of inclusive innovation at the BoP. This systematic literature review synthesises available research from business and management journals, aiming at enhancing our understanding of the activities of multinational enterprises in the attainment of inclusive innovation at the BoP. Chapter 3: Knowledge Configuration in the Internationalization of Emerging Economy Firms by Minh Q. Truong and Svetla T. Marinova Abstract: The chapter explores the configuration of knowledge allowing emerging economy firms to egange in outward foreign direct investment based on a case firm from Vietnam. Chapter 4: The Effect of Emerging Economies Operations to Knowledge Utilization: The Behaviour of International Companies as Exaptation and Adaptation by Pivi Aaltonen, Lasse Torkkeli and Maija Worek Abstract: No one informed the dinosaurs that their thermal insulation could someday be useful for a different purpose, yet their feathers developed into wings. This example describes exaptation, the discovery of new uses for existing traits complementary to adaptation. The former, which is similar to opportunity recognition, and the latter, which follows environmental demands, are paths of knowledge utilisation. Following the notion of exaptation concerning the repurposing of knowledge in internationalisation, this study illustrates how internationalising of emerging market firms changes their behaviour moving from adaptation to exaptation, offering a systematic theory to analyse organisational behaviour in a variety of contexts. This study illustrates how a change from developed to emerging locations demands new uses of existing knowledge. The expansion of knowledge use creates further possibilities for additional expansions to emerging economies in a similar way. This process is particularly important since it illustrates how organisations from developed economies adopt a behaviour more similar to the one pertaining to emerging economies, for example, the ability to deal with political instability. Nevertheless, this process can take a long time. Therefore, we suggest that exaptation is an essential concept in understanding organisational learning specifics in emerging economies as well as that the capabilities learned in emerging economies can further leverage organisational capabilities in other locations. Chapter 5: Value Co-Creation in Multinational Enterprises’ Services Marketing at the Bottom-of-the-Pyramid Markets by Tiina Leposky, Ahmad Arslan and Desislava Dikova Abstract: This chapter addresses determinants of value creation by multinational enterprises (MNEs) in the underexplored research context of the bottom of the pyramid (BoP) markets. Consisting of consumers living below the poverty line, BoP markets exhibit significantly different characteristics compared to the affluent developed or aspirational emerging market contexts. Dealing with a wide range of divers markets where it is difficult to obtain reliable information means that MNEs tend to face significant challenges upon entering such markets. Nonetheless, the unmet needs that can be transferred to demand in the BoP markets should not be ignored. Hence, MNE’s have demonstrated that they are willing to innovate market-specific approaches to cater to BoP needs and wants. We discuss the applicability of service-dominant (S-D) logic in subsistence context and identify commitment to the market, strategic corporate social responsibility, and service quality as key firm level determinants of effective service marketing in the BoP markets. We further identify social trust, technological outreach and performance orientation characteristics in targeting the BoP markets as key country level determinants. Chapter 6: An Ethical Perspective on Corporate Leadership in Emerging Economy Contexts: Setting up the Scene for Future Research by Li Thuy Dao Abstract: Developing leadership for good organization is about developing good leadership, which means good technically, signifying effective and good morally, signifying ethical. Emerging economies represent challenging environments for corporate leadership in terms of adopting ethical practices. The chapter aims at setting up a research agenda business leadership ethics in the context of emerging economies based on a narrative review of extant literature addressing: 1) the philosophical embeddedness of leadership ethics; 2) existing conceptual approaches to ethics in leadership literature; and 3) the gaps between existing conceptualisation and emerging economy contextual embeddedness. The research agenda highlights the need for an integrated view on ethics with more attention to teleological issues as well as an interdisciplinary approach toward the creation of a theoretical framework, qualitative in-depth cases and small-scale comparative studies among emerging economy contexts. Part Two: Specifics of Chinese Firms and Chinese Context Chapter 7: The Power of Prestige: Investigating Employees’ Commitment in Companies Acquired by Chinese Multinational Enterprises in Germany by Katrin Held Abstract: Based on social identity theory, the study gives insights into Chinese companies’ reputation challenges and opportunities to employ a committed workforce through acquisitions in Germany. The article empirically investigates the influence of the perceived external prestige of the Chinese parent company (PEPp) and the perceived external prestige of the acquired German subsidiary (PEPs) on the organisational commitment. Furthermore, the study analyses the role of organisational tenure and employees’ hierarchical position in the aforementioned relationships. Employing data from 121 employees, the study shows that the two types of prestige influence employees’ commitment, with the PEPp playing a more dominant role than the PEPs. The study provides implications for Chinese companies to overcome reputational challenges and employ a committed workforce by properly addressing employees with regard to their organisational tenure and hierarchical position. Chapter 8: A Combinative Perspective on Technology Adoption – A Case Analysis about Block Chain Technology Adoption in Chinese Financial Industry by Ziwei Zhao, Daojuan Wang and Xianhua Wei Abstract: This chapter studies technology adoption literature by investigating the technology evolution and analysing the network actor’s interactions in a case study of block chain technology (BT) adoption in Chinese financial industry. The study is based on primary data collected via interview and focus group discussions, as well as the secondary data from the internet and media reports. Firstly, we propose a combinative perspective of technology evolution and social network to analyse the technology adoption. Secondly, we identify a close relationship between technology evolution and network actor’s interactions, which can explain how BT is adopted in Chinese financial industry. Three stages are distinguished under the background of worldwide BT development. Thirdly, we analyse BT adoption case systematically from different actors’ perspectives, such as investors, exchanges, BT companies, traditional financial institutions, government and block chain financial research institutes, which provides a comprehensive investigation of this phenomenon and suggests some future research directions. Lastly, some adoption problems are found and corresponding solutions proposed. Chapter 9: Examining the Importance of Social Media and Other Emerging ICTs in Far Distance Internationalization: The Case of a Western Exporter Entering China by ystein Moen, Alex Rialp and Josep Rialp Abstract: We focus on the importance of digital social media for a European B2B firm entering the Chinese market. Our case company has achieved rapid international growth, including within the Chinese market. We find out that social media has been an exceedingly important factor. The company, however, did not identify China’s digital firewall, which blocks platforms such as Facebook and Youtube, as a major entry barrier. Most of the social media content is produced and published by other providers, via not traditionally online product reviews or electronic word-of-mouth expressing viewpoints about the products. Indeed, the majority of content seems to be rather straightforward, simple videos of the products working. Thus, it is imperative to understand what motivates people and organizations to produce and publish these videos. New information and communication technology-based products and services represent major opportunities, and the Chinese market and its customers are evaluated as more open to new solutions than more conservative Western countries.
