Internationalization Strategies of Emerging Market Multinationals

Emerging market multinationals (EMMs) have transformed the global economy by expanding beyond domestic borders through a range of strategic approaches. Unlike traditional multinationals from advanced economies, EMMs often rely on a combination of home-country institutional support, resource-seeking acquisitions and network-driven alliances to access strategic assets and new markets. Their internationalisation typically unfolds through accelerated processes, propelled by government policies, catch-up imperatives and integration into global value chains. These firms leverage unique firm-specific advantages—such as cost-efficient capital, managerial competencies adapted to volatile environments and political connections—to overcome liability of foreignness. They adopt diverse entry modes, from joint ventures and minority equity stakes to full acquisitions, selecting modes that balance control with institutional legibility in host markets. Path-dependent learning and relational practices further enable EMMs to navigate complex regulatory landscapes. As they evolve, many pursue a dual mandate of commercial returns and non-commercial objectives, particularly in the case of state-owned enterprises. The resulting strategies highlight the interplay between home-country governance, cross-border learning and evolving corporate governance structures, underscoring the global significance of EMMs’ internationalisation for market competition, technology transfer and sustainable development.

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Internationalization Strategies of Emerging Market Multinationals publication trend

The graph below shows the total number of articles in internationalization strategies of emerging market multinationals across all publications each year (not limited to Nature Index journals).

Technical terms

Emerging Market Multinational (EMM): A firm headquartered in a developing economy that has expanded its operations across national borders.

Internalization theory: A framework explaining why firms prefer to internalise transactions within their organisation rather than through market mechanisms, emphasising control of proprietary advantages.

Global value chain (GVC): The full range of activities that firms undertake to bring a product from conception to end use and beyond, often spanning multiple countries.

State-owned enterprise (SOE): A company in which the government holds significant ownership and may pursue both economic and non-economic objectives.

Discreet power: The subtle influence wielded by state-owned investors through foreign investments to achieve political or strategic objectives.

References

1. Internationalization of emerging market multinational enterprises: A systematic literature review and future directions. Journal of Business Research (2023).
2. Firm-specific advantages: a comprehensive review with a focus on emerging markets. Asia Pacific Journal of Management (2020).
3. Enriching internationalization process theory: insights from the study of emerging market multinationals. Journal of International Management (2021).
4. A review of the internationalization of state-owned firms and sovereign wealth funds: Governments’ nonbusiness objectives and discreet power. Journal of International Business Studies (2022).