Title: Internationalisation and global competitive advantage: implications for Asian emerging market multinational enterprises

Authors: Juichuan Chang, Rajesh K. Pillania

Addresses: Department of International Trade, Faculty of Business Administration, Ling Tung University, #1 Ling Tung Rd., Taichung City 408, Taiwan. ' Asia Center Fellow, Ash Center for Democratic Governance and Innovation, Harvard University, John F. Kennedy School of Government, Mailbox 74, 79 JFK Street, Cambridge, MA 02138, USA

Abstract: The purpose of this study is to provide an integrated framework that conceptualises multifaceted antecedents pertaining to international expansion of emerging market businesses in relation to firm performance. This paper develops multiple-item measures of multiple-dimensions to clarify how internationalisation path, R&D investment, product diversification, FDI, foreign ownership affect emerging market MNEs performance in a sample of 115 Asia Pacific MNEs over the period 2002-2006. The result shows that the relationship between internationalisation and firm performance is a non-linear relationship (a three-stage theory of international expansion). The results also indicate that moderate product diversification can increase emerging market MNEs| capacities to exploit different market opportunities when they engage in foreign activity. By contrast, firm performance will turn out to be negative when MNEs heavily expand their product offerings and geographic markets.

Keywords: three-stage theories; international expansion; R&D; research and development; product diversification; foreign direct investment; FDI; foreign ownership; Asia Pacific; internationalisation; global competitiveness; globalisation; competitive advantage; multinational enterprises; MNEs; multifaceted antecedents; firm performance; multiple-item measures; multiple-dimensions; non-linear relationships; market opportunities; foreign trade; product offerings; geographic markets; Hong Kong; China; Taiwan; South Korea; Singapore; business environment; emerging markets.

DOI: 10.1504/IJBE.2010.037597

International Journal of Business Environment, 2010 Vol.3 No.4, pp.372 - 392

Available online: 20 Dec 2010

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