This document presents a typology of internationalization strategies for firms from emerging markets. Through a literature review and analysis of 138 multinational enterprises, the author identifies four main strategies: 1) Multinational Challengers target global markets and pursue simultaneous expansion, 2) Global Exporters/Importers expand incrementally to close markets, 3) OEM/ODM firms follow clients globally through subcontracting and 4) Regional Exporter/Importers initially focus on developing country exports. The typology is intended to classify emerging market firms and identify characteristics of their internationalization approaches.

1. Internationalization Strategy of
Emergitng Market Firms
余仁鈞
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2. Agenda
• Introduction
• Firms of Emerging Markets: New Typology
• Research Methodology
• Discussion and Typology Development
• Conclusion
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3. Introduction
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4. Purpose
• To complement and extend current
knowledge by providing a typology
that outlines the patterns of
internationalization strategies
pursued by firms from emerging
market.
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5. Three Questions
• What are the key characteristics of
different internationalization patterns
pursued by multinational firms from
emerging markets?
• How can we classify emerging market
multinational firms by their
internationalization strategies?
• What are the lessons learned for firms
in developed economies?
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6. Three Questions
• What are the key characteristics of
different internationalization patterns
pursued by multinational firms from
emerging markets?
• How can we classify emerging market
multinational firms by their
internationalization strategies?
• What are the lessons learned for firms
in developed economies?
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7. Three Questions
• What are the key characteristics of
different internationalization patterns
pursued by multinational firms from
emerging markets?
• How can we classify emerging market
multinational firms by their
internationalization strategies?
• What are the lessons learned for firms
in developed economies?
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8. Firms of Emerging Markets
New Typology of Internationalization Strategies
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9. New Typology
R & D Intensity
C A
Global Regional Exporter/Importer
Exporter and Importer
Multinational Challenger
OEM/ODM
D B
0
Marketing Intensity
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10. Research Methodology
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11. Sample
• 138 MNEs
• 44% of MNEs from emerging and newly industrialized nations
• Wide range of industry sectors
South Korea
Taiwan
Hong Kong
India
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12. Variables and Measure
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13. 13

14. Factor Analysis
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15. Discussion and
Typology Development
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16. Mean Values
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17. Clusters of Internationaliation
4 2 5
R & D Intensity
Multinational ChallengersPlayers
Global Market Niche
6 OEM/ODM Technology Leader
Global Exporters and Importers
Regional Exporters
OEM/ODM Technology Fast-followers
1 3
0
Marketing Intensity
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18. Contrasting Internationalization
Strategies of Different Clusters
• Intensity of Expansion
• Speed of Entry
• Target Market Selection
• Entry Mode
• Product Strategies
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19. Intensity of Expansion
Intensity of Expansion
higher R&D/marketing less R&D /marketing
intensity intensity
several markets one market
(Cluster 2,3,4, and 5) (Cluster 1 and 6)
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20. Speed of Entry
Speed of Entry
higher R&D intensity less R&D intensity
Domestic and overseas Longer period of time
expansions simultaneously (cluster 1 and 3)
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21. Target Market Selection
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22. Entry Mode
Export and overseas sales
1 subsidiaries.
Subcontractors and
4,6 follow the clients to other
foreign markets.
Entry Establish R&D centers in
Mode
2 overseas markets.
Establish marketing
5 subsidiaries first and then
overseas production
facilities later.
3 Direct selling mode and use agencies
or distributors. 22

23. Product Strategies
Product Strategies
higher marketing intensity Less marketing intensity
A wide range of product Narrow product line
(cluster 2, 3, and 5) (cluster 4 and 6)
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24. Internationalization Typologies
Propositions Development
C A
D B
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25. Multinational Challenger (Group A)
• Proposition 1:
– They target global markets;
– adopt a new product development strategy and
pursue a wide product range;
– develop a global branding strategy and focus
on product and process innovation;
– and take a more proactive approach to
internationalization and penetrate multiple
overseas markets simultaneously.
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26. Global Exporter and Importer (Group B)
• Proposition 2:
– They adopt an incremental approach toward
internationalization and expand to one
overseas market at a time;
– target close markets first;
– and adapt existing domestic products for
overseas markets and provide a wide range of
products.
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27. OEM/ODM (Group C)
• Proposition 3:
– They adopt the born-global model toward
internationalization and penetrate multiple
overseas markets at once;
– follow the clients and target advanced markets
in the U.S., Europe, and Japan;
– establish a market presence in niche markets;
– adopt a new product development strategy but
focus on core products.
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28. Regional Exporter/Importer (Group D)
• Proposition 4:
– They focus on exports and establish sales
subsidiaries as the initial entry mode;
– adopt the incremental approach towards
internationalization and expand to one
overseas market at a time;
– consider developing countries before entering
advanced markets;
– and adapt existing domestic products for
foreign markets and focus on mass markets
with low prices.
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29. Conclusion
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30. International Entry Mode
Sequences for Each Type of Firm
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31. Marketing Strategies
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32. The End
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