Home country learning and international expansion of emerging market multinationals

Operating in the home country provides firms with substantial experience and learning opportunities. Emerging market economies provide a rich context in terms of diversity of sub-national institutions, competitors, consumers, and business networks. Operating in such context enables EMNEs to experience and learn about developed and underdeveloped institutions, building relationships with firms within and outside of their networks, customers with diverse income levels, tastes and preferences, and competition from firms with multiple ownership groups. The experience and learning that EMNEs gain from such diversity in their home environments assist them in their international expansion. Focusing on the pre-internationalization stage, we identify different aspects of home country diversity that facilitates EMNE internationalization. Additionally, we discuss the firm-specific contingencies that enable or restrict learning from home environments.