Search results

This paper aims to analyze how emerging market firms upgrade their capabilities by focusing on “uncommoditizing strategies” that enable them to achieve levels of international competitiveness beyond the comparative advantages of their home countries and serve markets with premium pricing, quality and reputation of products.

In this paper, the authors studied 18 Latin American companies across six countries. Latin America represents an ideal setting because many of these countries have traditionally developed using natural resource endowments, and their firms have tended to rely on these in their internationalization. To facilitate the analysis of each case and the comparisons across cases, the authors used the same analytical framework for the companies, identifying the sources of differentiation and cost efficiency strategies that enabled these firms to upgrade their capabilities and compete on the basis of premium pricing, quality and reputation.

The analysis identified a general framework that represents an abstraction of the actions taken by these companies over time. The proposed model consists of three main elements used to pursue uncommoditizing strategies: tropicalized innovation, global efficiency and coordinated control.

Recent research on emerging market firms has shown interest in how these firms upgrade their capabilities. This paper contributes to this stream of research by providing an overarching framework that not only bridged previous narrower studies but also explained how firms can develop uncommoditizing strategies to upgrade their capabilities. Further, this paper helps managers by providing a comprehensive yet succinct overview of the main strategies that they can use to help their firms to achieve international competitiveness.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

In the past years, many contributions have been published addressing frugal innovation and other types of resource-constrained innovations in the management field. Throughout this paper frugal innovation is reported as a phenomenon, concept, research field and strategy, showing the different ways the literature refers to it and how scattered the concept is. However, based on the understanding, the authors decided to address frugal innovation as a kind of innovation strategy that helps companies to innovate in resource-constrained environments. Therefore, considering the increasing interest in the frugal innovation topic and adding the perspective of business strategy for resource-constrained conditions, the research question addressed in this paper is: what are the main features of the frugal innovation literature that unfold its current perspectives for business strategy? In this sense, the purpose of this study is to analyze the scientific production in frugal innovation through a literature mapping and review to better understand it, delimiting different perspectives and creating boundaries to other business strategies or approaches.

The authors performed a co-citation analysis using the Vosviewer software to notice how authors are arranged in clusters based on their understanding of the topic. Furthermore, the authors also performed a systematic literature review (SLR) analyzing the extant literature on frugal innovation based on the clusters found through the co-citation method. The final sample used in the study included 42 papers published between 2011 and 2019, using the Web of Science platform as a data source.

By means of SLR, the findings of this study provided a more organized view of frugal innovation through the co-citation analysis and the qualitative analysis of the clusters, which were the basis for the parameters established. After the conceptualization of frugal innovation strategy (FIS) and the delimitation of boundaries of FIS, the authors bring the reflections about the contribution to the literature and the practice (managers and society) by showing three assumptions to be tested and confirmed in future studies and a framework to guide companies in search of a FIS.

This study contributes to the discussion on frugal innovation moving a step forward to clarify the research field on this subject providing the main characteristics for researchers and practitioners. The paper has delimited the boundaries of FIS. The assumptions established in the discussion can become hypotheses for empirical studies. In addition, the authors explain why, what is, where and to whom the FIS can be developed and applied. Furthermore, the authors contribute by developing the FIS framework, with four strategic positions based on the boundaries of FIS organized by the complexity technological level. The strategic positions are frugal innovation orientation (FIO), FIO to value shared, FIO to market and FIS.

The purpose of this paper is to explain how emerging market firms create competitive advantage through innovation. The study through the upper echelon theory and the power distance cultural perspective examines the mediating role of organisational leadership in the innovation and competitive advantage relationships.

Data were collected from the service sectors of two emerging economies, i.e. India and Ghana. Robust standard error regressions were run at two levels. First, at the specific country level and later on the aggregated level for robustness check.

The results show that in both India and Ghana, innovation largely relates positively with competitive advantage. In specific terms, market innovation was found to be the most significant determinant of competitive advantage in both contexts. Additionally, organisational leadership was also found to be mediating between innovation and competitive advantage in both contexts independently and collectively to confirm the effect of power distance and leadership role in such cultures.

The current study looks at only two emerging markets with high power distance cultures. The implication is that the impact of leadership may differ in emerging economies with low power distance.

The current study looks beyond the mundane relationship between financial performance measures and innovation to assess innovation and competitive advantage in emerging markets context, which has not received the needed attention. It further explains how emerging markets firms can ride on the back of power distance to create a competitive advantage with their innovation development and implementation through organisational innovation leadership. The study offers that the maximum exploitation of the beneficial effect of innovation – competitive advantage – in service firms can only be achieved when leaders spearhead the innovation process and see it through implementation.

Western business-to-business firms are under increasing competition from firms in emerging nations. As examples, Mindray in medical devices, LiuGong in earth moving equipment, Tata motors in Buses and Suzlon in Wind turbines are emerging as strong competitors in their industries. Yet despite increased competition from emerging nation firms, insufficient research has examined the growth of these firms, specifically in the areas of technology and innovation development processes. The purpose of this study is to examine how emerging nation business-to-business firms that have global ambitions achieve technology competence.

The authors examined several case studies on emerging market business-to-business firms that have moved to global markets and highlight the following five: LiuGong China (excavating products), Mindray China (medical equipment), Suzlon Energy India (wind generators), Tata Motors Buses India and BYD Auto China (batteries to electric cars). The firms are in business-to-business markets, except for BYD China that emerged as a business-to-business battery supplier but is currently in both business-to-business and business-to-consumer markets.

The authors find that firms in emerging markets that have global ambitions follow different approaches to innovation development processes from conventional theories and assumptions held by scholars and practitioners in Western developed countries. Our cases suggest that firms follow the proposed progression: domestic markets – internally developed technology; domestic markets –acquired technology; and finally to, global markets – acquired technology.

The authors contribute to research in three areas. First, they suggest that the innovation development process for emerging market firms is different from the Western world. Second, they provide a framework of innovation development process that can be tested in multiple environments. Third, this study suggests a deeper examination of the longitudinal development of business-to-business firms, an area that has received less attention.

The authors suggest that firms need to better track their competition from emerging nations because emerging nation firms can quickly acquire technology to become strong competitors.

Extant research has not examined these issues.

Interest in reverse innovation (RI) is increasing. According to the authors’ review, more than 350 reliable sources (scientific publications, academic books and working papers) examine or at least discuss the concept. As RI gains popularity among academic authors, some discrepancies have started to appear. This wealth of publications could impact prior advancements related to understanding of the phenomenon. The purpose of this paper is to decrease fragmentation and focus on identifying and understanding RI.

A systematic review of RI was conducted. The review conformed to a rigorous set of core principles: it was systematic (organized according to a method designed to address the review questions), transparent (explicitly stated), reproducible and updatable, and synthesized (summarized the evidence relating to the review question).

This systematic review provides an improved theoretical and practical framework for the concept of RI. In terms of theory, the authors have demonstrated that the idea behind the concept is not entirely new. A consensus on the definition of RI is not reached in the literature, and descriptions in organizational theory contexts are sometimes misleading. The authors analyzed all the various definitions provided in the literature. From a practical point of view, the authors have explained the academic interest in RI in relation to organizational strategy, in particular the context in which strategies are adopted. The concept of RI has significant managerial implications, and the authors have proposed a conceptual framework to help managers understand and grasp the implications of RI. Finally, the authors have provided suggestions for future research on RI.

To the best of the authors’ knowledge, this is the first exhaustive literature review on RI.

The authors aim to examine the potential opportunities and challenges multinationals operating in Africa are likely to encounter when they seek to pioneer disruptive innovations at the base of the pyramid (BoP) in African emerging markets.

Drawing on the extant literature on the BoP, disruptive innovation and the African business context, the authors explore the pioneering of disruptive innovations in the African socio-economic context.

This study develops various hypotheses to extend our understanding of disruptive innovations at the BoP. The authors also delineate potential managerial and institutional challenges multinational corporations (MNCs) are likely to encounter in their efforts to pioneering disruptive innovations for BoP customers in African emerging markets.

The authors develop some recommendations for MNCs on how to create and capture value from disruptive innovations in African emerging markets

The authors delineate African context-specific managerial and institutional challenges that MNCs might encounter when seeking to develop disruptive innovation at the BoP.

This paper aims to study how multinational enterprises (MNEs) can best integrate legitimacy concerns into their new product-launching strategy to successfully introduce high-value hi-tech innovations in emerging countries.

Theoretical constructs on the role and process of legitimacy construction for the introduction of a new product are built upon the existing literature. Then they are validated and refined through the formulation and analysis of case studies of the launch of genetically modified cotton seeds by Monsanto in India and a HIV/AIDS drug cocktail by Merck in Brazil.

Legitimacy construction can serve MNEs to face challenges successfully while launching high-value hi-tech products in emerging countries. Challenges to MNEs are likely to be founded on a combination of four types of uncertainties: technological, commercial, organizational and societal. Expected challengers are public agencies and actors representing civil society. An MNE can prepare itself through legitimacy construction along three dimensions: redesign of technology, revision of marketing strategy and non-market investments. To implement the aforesaid, MNEs can engage in outreach in the form of strategic patience, market transaction, business collaboration, compromise and/or confrontation with diverse carefully chosen stakeholders.

The authors limited ourselves to tracing only the formal interactions of MNEs, while it is well-known that many informal and backdoor activities can also accompany their growth in emerging economies.

Legitimacy construction can help MNEs face challenges successfully while launching high-value hi-tech products in emerging countries. This calls for an evaluation of the systemic uncertainties followed by the formulation of a strategy for legitimacy construction and implementation through outreach to diverse systemic actors. Strategic patience can yield positive returns. Market transactions can serve as economic anchors. Collaboration can be pursued with parties who can share the costs of legitimization construction and/or reduce technological and marketing uncertainties. Confrontation should be the last choice. Compromise is the most probable but not the only outreach strategy possible after a confrontation.

Legitimacy implies product acceptance not only from the targeted consumer but also other societal stakeholders concerned with the safety and equity of the consumption in the emerging country, especially when regulations are not well-defined and/or implemented. The two kinds of societal stakeholders which are likely to monitor MNEs are public agencies and civil society groups. Public agencies will be concerned about the quantity, quality, technology or price of the innovation to be introduced. Civil society and NGOs may help the MNE act as citizen watchdogs for the environment and vulnerable communities.

Theoretical constructs have been developed in this paper on the sources of challenges in new product introduction, the types of challengers and the components of the firm’s legitimacy construction strategy and its implementation through an outreach strategy.

The purpose of this paper is to analyze the distribution strategies implemented by foreign firms in emerging markets, and to investigate whether they represent an opportunity for firms to innovate their practice. China is selected as the setting of the investigation as distribution is a critical determinant of business success for international firms operating there.

A multiple-case study approach is adopted by investigating the distribution strategies of four Italian firms in China. The collected data consist of interviews with firm managers and their distributors. To ensure triangulation and cross-verify the findings from the primary data, secondary data consisting of sector reports and newspaper articles were analyzed.

Results discuss how foreign firms develop their distribution system in China and suggest that emerging markets can enable reverse innovation in their distribution strategies.

The research suffers from the limitations of the generalizability of the findings as the study was carried out on a restricted number of firms, and it considered their strategies in one single market.

Managerial implications are discussed on the extent to which the Chinese distribution system still represents a key issue for foreign firms, but it also provides with opportunity for innovation.

While previous research on innovation in emerging markets has mainly focused on product innovation, this study suggests some areas for distribution innovation.