Internationalization as Co-Evolution of Market – And Non-market Strategies: The Case of Vale

Abstract

Purpose

The purpose of this chapter is to explore the role of the home country government in the internationalization of multinationals from emerging markets. This is an important topic because governments play a greater role in BRIC countries. We build upon the literature on non-market strategy, extending this to emerging market multinationals.

Methodology/approach

We ground our arguments based on a multimethod case study of Vale, a Brazilian mining multinational.

Findings

Our study suggests that the role of home country governments is crucial for internationalization of firms from emerging markets, but also that it changes over time, is complex, and context-specific. We suggest that non-market strategy development is a process of co-evolution that is intricately linked to both external and internal factors.

Practical Implications

These findings are of relevance to emerging markets where governments are less constrained and perhaps more inclined to intervene in the private sector due to a legacy of state-led growth.

Originality/value

We tease out unique links between market shifts, government tactics, and firm strategies. Our study shows the need to shift our attention to home country non-market pressures as an explanatory factor for internationalization trajectories.

Citation

Rodrigues, S.B. and Dieleman, M. (2017), "Internationalization as Co-Evolution of Market – And Non-market Strategies: The Case of Vale", The Challenge of Bric Multinationals (Progress in International Business Research, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 269-294. https://doi.org/10.1108/S1745-886220160000011014