IDEAS home Printed from
   My bibliography  Save this article

Risks and rewards in the globalization of telecommunications in emerging economies


  • Ramamurti, Ravi


The telecommunications industry in emerging markets has been transformed from a collection of mostly state-owned, national companies to one with many privately owned, multinational corporations (MNCs). Using examples from Latin America, this dramatic reconfiguration is explained as resulting from the dynamic interplay between country and firm strategies. It is further argued that first-mover MNCs reaped greater profits than late-mover MNCs, whereas timing had the opposite consequence for host countries. First-mover MNCs had the advantage of buying the incumbent state enterprise, enjoying monopoly privileges, making preemptive investments, leveraging political connections, and adopting entry-deterring policies to minimize competition. But early-reforming countries had to contend with the region's lack of credibility with investors by deeply discounting sale price, offering special privileges and protections, and absorbing risks that late-reforming countries were able to pass on to MNCs. The paper concludes that telecommunications no longer offers foreign investors easy riches like those enjoyed by first-moving MNCs in first-reforming countries. Late-moving firms, especially in late-reforming countries, are exposed not only to governments with higher bargaining power but also to greater regulatory and competitive risks.

Suggested Citation

  • Ramamurti, Ravi, 2000. "Risks and rewards in the globalization of telecommunications in emerging economies," Journal of World Business, Elsevier, vol. 35(2), pages 149-170, July.
  • Handle: RePEc:eee:worbus:v:35:y:2000:i:2:p:149-170

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Unctad, 1996. "World Investment Report 1996," Foreign Trade Review, , vol. 31(3), pages 85-109, October.
    2. Ravi Ramamurti, 1992. "Why are Developing Countries Privatizing?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(2), pages 225-249, June.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Dörrenbächer, Christoph & Gammelgaard, Jens, 2010. "Multinational corporations, inter-organizational networks and subsidiary charter removals," Journal of World Business, Elsevier, vol. 45(3), pages 206-216, July.
    2. Hwy-Chang Moon & Yan-Ling Yu, 2004. "The competitiveness of China's telecommunications industry before and after China's accession to the WTO," Global Economic Review, Taylor & Francis Journals, vol. 33(2), pages 79-98.
    3. Bevan, Alan & Estrin, Saul & Meyer, Klaus, 2004. "Foreign investment location and institutional development in transition economies," International Business Review, Elsevier, vol. 13(1), pages 43-64, February.
    4. Torsten Gerpott & Nejc Jakopin, 2008. "Markteintrittstiming von Telekommunikationsdiensteanbietern," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 19(1), pages 7-37, May.
    5. Meyer, Klaus E., 2002. "Management challenges in privatization acquisitions in transition economies," Journal of World Business, Elsevier, vol. 37(4), pages 266-276, January.
    6. Wang, Xin, 2012. "Foreign direct investment and innovation in China's e-commerce sector," Journal of Asian Economics, Elsevier, vol. 23(3), pages 288-301.
    7. Curwen, Peter & Whalley, Jason, 2013. "Mapping worldwide mobile networks: Some problems and indicative solutions," Telecommunications Policy, Elsevier, vol. 37(11), pages 1150-1165.
    8. repec:spr:manint:v:49:y:2009:i:1:d:10.1007_s11575-008-0128-3 is not listed on IDEAS
    9. Ramamurti, Ravi & Doh, Jonathan P., 2004. "Rethinking foreign infrastructure investment in developing countries," Journal of World Business, Elsevier, vol. 39(2), pages 151-167, May.
    10. Jakopin, Nejc M. & Klein, Andreas, 2012. "First-mover and incumbency advantages in mobile telecommunications," Journal of Business Research, Elsevier, vol. 65(3), pages 362-370.
    11. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2012. "Towards a comprehensive model of entry timing in the ICT industry: Direct and indirect effects," Journal of World Business, Elsevier, vol. 47(2), pages 297-310.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:35:y:2000:i:2:p:149-170. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.