Explaining the Internationalization of Emerging Economy Multinationals: The Relative Resource Specialization of Firm and Environment Mechanism

Cuervo-Cazurra, A., Meyer, K. and Ramamurti, R. 2015. Explaining the Internationalization of Emerging Economy Multinationals: The Relative Resource Specialization of the Firm and Environment Mechanisms. In Demirbag, M. and Yaprak, A. ‎(Eds.), Handbook of Emerging Market Multinationals. Edward Elgar.

15 Pages Posted: 27 Dec 2018

See all articles by Alvaro Cuervo-Cazurra

Alvaro Cuervo-Cazurra

Northeastern University - Department of International Business and Strategy

Klaus E. Meyer

China Europe International Business School (CEIBS); Copenhagen Business School - Center for East European Studies (CEES)

Ravi Ramamurti

Northeastern University - D’Amore-McKim School of Business

Date Written: October 31 9, 2014

Abstract

We study how the country of origin of a firm influences its internationalization, analyzing emerging economy multinational companies (EMNCs) as a laboratory for extending theory. EMNCs have been observed to vary from advanced economy MNCs (AMNCs), suggesting that the home context is the critical explanation. We propose “resource specialization” as the mechanism explaining differences and argue that firms in emerging economies develop a lower degree of resource specialization and wider sets of resources in response to underdevelopment at home. These more varied sets of resources lead EMNCs to have lower levels of internationalization and different patterns of foreign expansion than AMNCs.

Keywords: Resource-based view, developing countries, multinational firms

JEL Classification: F23, M16, M21

Suggested Citation

Cuervo-Cazurra, Alvaro and Meyer, Klaus E. and Ramamurti, Ravi, Explaining the Internationalization of Emerging Economy Multinationals: The Relative Resource Specialization of Firm and Environment Mechanism (October 31 9, 2014). Cuervo-Cazurra, A., Meyer, K. and Ramamurti, R. 2015. Explaining the Internationalization of Emerging Economy Multinationals: The Relative Resource Specialization of the Firm and Environment Mechanisms. In Demirbag, M. and Yaprak, A. ‎(Eds.), Handbook of Emerging Market Multinationals. Edward Elgar.. Available at SSRN: https://ssrn.com/abstract=3298421

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

Klaus E. Meyer

China Europe International Business School (CEIBS) ( email )

Shanghai-Hongfeng Road
Shanghai 201206
Shanghai 201206
China

HOME PAGE: http://www.ceibs.edu/faculty/facultylist/09/100132.shtml

Copenhagen Business School - Center for East European Studies (CEES) ( email )

Porcelanshaven 24
2000 Frederiksberg
Denmark

HOME PAGE: http://www.klausmeyer.co.uk

Ravi Ramamurti

Northeastern University - D’Amore-McKim School of Business ( email )

360 Huntington Ave.
Boston, MA 02115
United States

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