Title: Springboard internationalisation as a growth strategy for emerging countries MNEs: the case of Malaysia

Authors: Fariza Hashim; Asmat Nizam Abdul Talib

Addresses: Prince Sultan University, P.O. Box 66833, Riyadh, 11586, Saudi Arabia. ' College of Business, Universiti Utara Malaysia, Sintok, 01060, Kedah, Malaysia

Abstract: Emerging countries' MNEs have become significant players in the global market and their success is attributed to internationalisation strategies. In spite of entering the global market at a later stage, these firms have aggressively involved at their initial stage. Their acceleration in international expansion has challenged the MNEs' internationalisation as discussed in the conventional theories. This paper attempts to shed light on the international expansion by emerging markets MNEs and highlight their differences in the internationalisation theories. Based on an internationalisation model developed by previous scholars, this paper qualitatively analyses several Malaysian MNEs that have expanded using various modes and strategies. The paper focuses on the view of springboard international expansion and the processes that they went through despite their immature presence in the global market. The findings indicate that the motives and drivers of Malaysian MNEs differ from MNEs in other larger emerging countries like India and China.

Keywords: emerging markets; market expansion; outward foreign direct investment; OFDI; springboard internationalisation; growth strategies; emerging countries; multinational enterprises; MNEs; global markets; international expansion; immature presences; motives; drivers; India; China; Scomi Group; YTL Corporation; UMW Holdings; Eng Technology; Tong Guan Industries; UEM Builders; Sime Darby; PETRONAS; Telekom Malaysia; international business; entrepreneurship development; entrepreneurs; small and medium-sized enterprises; SMEs.

DOI: 10.1504/JIBED.2012.045378

Journal for International Business and Entrepreneurship Development, 2012 Vol.6 No.1, pp.50 - 62

Published online: 06 Feb 2012 *

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