Skip to main content Accessibility help
×
Home
Hostname: page-component-768ffcd9cc-b9rrs Total loading time: 0.352 Render date: 2022-11-29T22:22:34.379Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "useRatesEcommerce": false, "displayNetworkTab": true, "displayNetworkMapGraph": false, "useSa": true } hasContentIssue true

(II.i) - How emerging market multinational enterprises upgrade capabilities using value-chain configuration in advanced economies

Published online by Cambridge University Press:  05 April 2013

Peter J. Williamson
Affiliation:
Judge Business School, Cambridge
Ravi Ramamurti
Affiliation:
Northeastern University, Boston
Afonso Fleury
Affiliation:
University of Sao Paulo
Maria Tereza Leme Fleury
Affiliation:
Fundação Getulio Vargas, São Paulo
Get access

Summary

Introduction

Global value-chain configuration helps multinational companies improve their competitive advantage due to the integration within the firm of the comparative advantage of other countries and the competitive advantage of firms from other countries. Many studies of global supply chain take the view of developed market multinational enterprises (DMNEs) that tend to off-shore outsource production to developing countries in order to access the comparative advantage of low-cost labour (e.g. Lewin et al., 2009; see articles reviewed by Contractor et al., 2010, in the special issue on off-shore outsourcing). However, the emergence of emerging market multinational enterprises (EMNEs) challenges some of the assumptions of these studies because such firms are already operating in countries with low cost and, in principle, would not benefit from a similar global value-chain configuration. In contrast to DMNEs, EMNEs suffer from comparative disadvantages of operating in home countries with challenging institutions and without sophisticated resource intermediaries (Cuervo-Cazurra and Genc, 2008; Khanna and Palepu, 2010). Thus, the study of EMNEs can provide new insights on global value-chain configuration that previous studies of DMNEs may have overlooked.

In this commentary I analyse global value-chain configuration by EMNEs, specifically describing four strategies that these firms can use in advanced economies to upgrade their capabilities and solve their developing-country comparative disadvantages. I then illustrate the four strategies using the four country studies in this part of the book.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2013

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)
1
Cited by

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×