Toward a 2-Stage Theory of Emerging Market Multinationals


  • Robert Grosse Past President and Fellow, Academy of International Business; Thunderbird School of Global Management; Arizona State University, USA



I present a 2-stage theory in which emerging market firms first compete domestically based on traditional competitive advantages. Once they achieve a threshold stage, then they go overseas and are able to succeed based on company and industry characteristics, as well as emerging market characteristics.  I expect to see that factors enabling firms to get to the threshold stage will include: brand value, low-cost production, experience/age, company size, possibly membership in a business group, and international sales (but not technology).  Then I would expect that factors enabling firms to succeed internationally should depend on the industrial sector and the target market, as well as demonstrating emerging market idiosyncrasies such as ability to deal with high uncertainty in government policies and economic conditions as well as flexibility in dealing with business conditions.  Most analyses of emerging market MNEs focus only on the last set of factors that are common to emerging markets.

Author Biography

Robert Grosse, Past President and Fellow, Academy of International Business; Thunderbird School of Global Management; Arizona State University, USA

Robert Grosse (PhD, University of North Carolina) is Professor of Business Administration and director for Latin America at Thunderbird School of Global Management, Arizona State University. He is Fellow and past President of the Academy of International Business (AIB). He is also Fellow and past President of the Business association of Latin American Studies. He was the Dean of the School of Business Administration at American University of Sharjah (United Arab Emirates) and Dean of the EGADE Business School at Monterrey Tec in Mexico. He is a leading author in International Business and has extensively published in leading journals. He has consulted or worked for many well-known multinational companies including Standard Bank, Anaconda Copper Corporation, Xerox, American Express, Banco Ganadero, Chase Manhattan Bank, Citibank, EXXON, IBM, Merrill Lynch, Raymond James, Texaco, and YPF.


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How to Cite

Grosse, R. (2022). Toward a 2-Stage Theory of Emerging Market Multinationals. Journal of Comparative International Management, 25(1), 9–29.



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