Conclusions: Upgrading Capabilities to Build an Emerging Market Multinational

Cuervo-Cazurra, A. 2018. Conclusions: Upgrading Capabilities to Build an Emerging Market Multinational. In Cuervo-Cazurra, A. and Montoya, M. (Eds). Mexican Multinationals: Building Multinationals in Emerging Markets. New York: Cambridge University Press.

18 Pages Posted: 28 Dec 2018

See all articles by Alvaro Cuervo-Cazurra

Alvaro Cuervo-Cazurra

Northeastern University - Department of International Business and Strategy

Miguel A. Montoya

Instituto Tecnológico de Estudios Superiores de Monterrey

Date Written: October 14, 2017

Abstract

This chapter explains how the lessons derived from the analysis of Mexican multinationals, MultiMexicans, in a variety of industries contribute to a better understanding of the strategies used by emerging market firms to upgrade capabilities and internationalize. The chapter explains two main lessons. First, the process of upgrading capability to build an emerging market multinational, and the role played by the characteristics of the home country. The underdevelopment of the country and its institutional weakness influence managers’ skills and mindsets and the industry’s regulation and customer characteristics, thus supporting the funds and technologies available to firms. These, in turn, influence the firm’s capability upgrading and their internationalization speed and breadth. Second, the four alternative upgrading strategies for internationalization that emerging market firms use: Improvement, whereby firms upgrade processes at the local level; Integration, whereby firms upgrade processes at the global level; Inspiration, whereby firms upgrade products at the local level; and Innovation, whereby firms upgrade products at the global level.

Keywords: multinational firms, emerging markets, Mexico, emerging market multinationals, internationalization, capability upgrading, strategy

JEL Classification: F23, M2

Suggested Citation

Cuervo-Cazurra, Alvaro and Montoya, Miguel A., Conclusions: Upgrading Capabilities to Build an Emerging Market Multinational (October 14, 2017). Cuervo-Cazurra, A. 2018. Conclusions: Upgrading Capabilities to Build an Emerging Market Multinational. In Cuervo-Cazurra, A. and Montoya, M. (Eds). Mexican Multinationals: Building Multinationals in Emerging Markets. New York: Cambridge University Press.. Available at SSRN: https://ssrn.com/abstract=3298407

Alvaro Cuervo-Cazurra (Contact Author)

Northeastern University - Department of International Business and Strategy ( email )

D'Amore-McKim School of Business
313 Hayden Hall, 360 Huntington Avenue
Boston, MA 02115
United States
16173736568 (Phone)
16173738628 (Fax)

HOME PAGE: http://cuervo-cazurra.com

Miguel A. Montoya

Instituto Tecnológico de Estudios Superiores de Monterrey ( email )

Av. General Ramón Corona No.2514
Zapopan, Jalisco, 45201
Mexico
523336693000 (Phone)

HOME PAGE: http://www.itesm.mx/wps/wcm/connect/Campus/GDA/Guadalajara/

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