Dragon multinationals: New players in 21 st century globalization
This review article starts from the question: how does the global business system appear to a challenger firm, and how have challenger Multinational Enterprises (MNEs) from formerly peripheral areas such as the Asia Pacific established themselves successfully, against the sometimes fierce resistance of incumbents? To answer this question, the review develops an argument concerning the pluralistic character of the process of globalization, as contrasted with the conventional account that sees global processes creating uniformity and convergence. This alternative account is based on a review of the experiences of latecomer and newcomer MNEs, particularly those from the Asia Pacific—such as Acer, Ispat International, Li & Fung and the Hong Leong Group—that are dubbed “Dragon Multinationals.” I argue that the innovative features that these MNEs share, such as their accelerated internationalization, strategic innovation and organizational innovation, fit particularly well with the characteristics of the emergent global economy as one of complex inter-firm linkages. The core proposition of the review is that this complementarity between the characteristics of the emergent global economy and latecomer and newcomer strategic and organizational innovations is what drives the remarkable success of these Asia Pacific firms in establishing themselves as serious international players. Such a proposition carries implications for the process of globalization as well as for the dominant frameworks utilized in International Business. The review argues that Dragon Multinationals adopt a different perspective to the resources accessed through internationalization, and that this requires a rethink of the criteria normally utilized in resource-based accounts of strategy. The challenger firm internationalizing in order to access resources also poses a challenge to the dominant OLI (ownership, locational, internalization) account of multinational advantage. Thus it is argued that the question posed at the outset goes to the core of the IB frameworks, and thereby counts as one of the ‘big questions’ that should guide research in IB in the 21 st century. Copyright Springer Science + Business Media, Inc. 2006
Volume (Year): 23 (2006)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: P.O. Box 17, 3300 AA Dordrecht, the Netherlands|
Web page: http://www.springerlink.com/link.asp?id=106589
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Madsen, Tage Koed & Servais, Per, 1997. "The internationalization of Born Globals: An evolutionary process?," International Business Review, Elsevier, vol. 6(6), pages 561-583, December.
- Phillips McDougall, Patricia & Shane, Scott & Oviatt, Benjamin M., 1994. "Explaining the formation of international new ventures: The limits of theories from international business research," Journal of Business Venturing, Elsevier, vol. 9(6), pages 469-487, November.
- Peter Nolan & Dylan Sutherland & Jin Zhang, 2002. "The Challenge of the Global Business Revolution," Contributions to Political Economy, Oxford University Press, vol. 21(1), pages 91-110, December.
- Louis T. Wells, 1983. "Third World Multinationals: The Rise of Foreign Investments from Developing Countries," MIT Press Books, The MIT Press, edition 1, volume 1, number 026273169x.
- Mike W Peng, 2004. "Identifying the big question in international business research," Journal of International Business Studies, Palgrave Macmillan, vol. 35(2), pages 99-108, March.
- Bell, Jim & McNaughton, Rod & Young, Stephen, 2001. "'Born-again global' firms: An extension to the 'born global' phenomenon," Journal of International Management, Elsevier, vol. 7(3), pages 173-189.
- Andersson, Ulf & Forsgren, Mats, 1996. "Subsidiary embeddedness and control in the multinational corporation," International Business Review, Elsevier, vol. 5(5), pages 487-508, October.
- John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 461-491, September.
- Dimitratos, Pavlos & Johnson, Jeffrey & Slow, Jonathan & Young, Stephen, 2003. "Micromultinationals:: New Types of Firms for the Global Competitive Landscape," European Management Journal, Elsevier, vol. 21(2), pages 164-174, April.
- Clark, Terry & Knowles, Lynette L., 2003. "Global myopia: globalization theory in International Business," Journal of International Management, Elsevier, vol. 9(4), pages 361-372.
- John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
- Rugman, Alan M., 2003. "Regional strategy and the demise of globalization," Journal of International Management, Elsevier, vol. 9(4), pages 409-417.
- Alan M Rugman & Alain Verbeke, 2004.
"A perspective on regional and global strategies of multinational enterprises,"
Journal of International Business Studies,
Palgrave Macmillan, vol. 35(1), pages 3-18, January.
- Alan M. Rugman & Alain Verbeke, 2004. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Working Papers 2004-19, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- John A. Mathews, 2003. "Competitive dynamics and economic learning: an extended resource-based view," Industrial and Corporate Change, Oxford University Press, vol. 12(1), pages 115-145, February.
- Narula Rajneesh & Sadowski Bert M., 1998. "Technological catch-up and strategic technology partnering in developing countries," Research Memorandum 001, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Nolan, Peter & Zhang, Jin, 2003. "Globalization Challenge for Large Firms from Developing Countries:: China's Oil and Aerospace Industries," European Management Journal, Elsevier, vol. 21(3), pages 285-299, June.
- Tailan Chi & Donald J McGuire, 1996. "Collaborative Ventures and Value of Learning: Integrating the Transaction Cost and Strategic Option Perspectives on the Choice of Market Entry Modes," Journal of International Business Studies, Palgrave Macmillan, vol. 27(2), pages 285-307, June.
- Calof, Jonathan L. & Beamish, Paul W., 1995. "Adapting to foreign markets: Explaining internationalization," International Business Review, Elsevier, vol. 4(2), pages 115-131, June.
- Peter J Buckley, 2002. "Is the International Business Research Agenda Running Out of Steam?," Journal of International Business Studies, Palgrave Macmillan, vol. 33(2), pages 365-373, June.
- Otto Andersen, 1993. "On the Internationalization Process of Firms: A Critical Analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 24(2), pages 209-231, June.
When requesting a correction, please mention this item's handle: RePEc:kap:asiapa:v:23:y:2006:i:1:p:5-27. 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: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.