IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/127244.html
   My bibliography  Save this paper

Understanding the uniqueness of emerging markets and their firms: institutional voids-based dynamic capabilities in the Chinese automotive sector

Author

Listed:
  • Cote, Christine
  • Hu, Helen

Abstract

IB scholars are interested in understanding the uniqueness of emerging markets and their firms and argue that firms operating in environments characterized by institutional voids are likely to face higher costs due to reduced information flows and limited market intermediaries. We argue that institutional voids drive the dynamic capabilities of emerging market multinational enterprises. Taking the Chinese auto industry as an example, this article integrates institutional voids and dynamic capabilities to provide insight into how Chinese EMNEs have moved from technology followers to technology leaders to integrate, build, and reconfigure internal and external competencies and address a rapidly changing environment.

Suggested Citation

  • Cote, Christine & Hu, Helen, 2025. "Understanding the uniqueness of emerging markets and their firms: institutional voids-based dynamic capabilities in the Chinese automotive sector," LSE Research Online Documents on Economics 127244, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:127244
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/127244/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. North,Douglass C., 1991. "Institutions, Institutional Change and Economic Performance," Cambridge Books, Cambridge University Press, number 9780521394161, June.
    2. Jonathan Doh & Suzana Rodrigues & Ayse Saka-Helmhout & Mona Makhija, 2017. "International business responses to institutional voids," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 293-307, April.
    3. Alvaro Cuervo-Cazurra & Mehmet Genc, 2008. "Transforming disadvantages into advantages: developing-country MNEs in the least developed countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(6), pages 957-979, September.
    4. Teece, David J, 2018. "Dynamic capabilities as (workable) management systems theory," Journal of Management & Organization, Cambridge University Press, vol. 24(3), pages 359-368, May.
    5. Dieleman, Marleen & Markus, Stanislav & Rajwani, Tazeeb & White, George O., 2022. "Revisiting Institutional Voids: Advancing the International Business Literature by Leveraging Social Sciences," Journal of International Management, Elsevier, vol. 28(3).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mike W. Peng & Joyce C. Wang & Nishant Kathuria & Jia Shen & Miranda J. Welbourne Eleazar, 2023. "Toward an institution-based paradigm," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 353-382, June.
    2. Andrews, Luke R.J. & Luiz, John M., 2024. "Conceptualizing institutional voids in terms of severity and how the home country affects this understanding," Journal of Business Research, Elsevier, vol. 176(C).
    3. Daniel J. Blake & Stanislav Markus & Julio Martinez‐Suarez, 2024. "Populist Syndrome and Nonmarket Strategy," Journal of Management Studies, Wiley Blackwell, vol. 61(2), pages 525-560, March.
    4. Clampit, Jack & Gaffney, Nolan & Fabian, Frances & Stafford, Thomas, 2023. "Institutional misalignment and escape-based FDI: A prospect theory lens," International Business Review, Elsevier, vol. 32(3).
    5. White, George O. & Rajwani, Tazeeb & Krammer, Sorin M.S., 2022. "Legal distance and entrepreneurial orientation of foreign subsidiaries: Evidence from Southeast Asia," Journal of World Business, Elsevier, vol. 57(6).
    6. Paul Caussat, 2021. "Competitive Advantages in a Hostile, Regulated Environment: Four Multinational Banks in India," Management International Review, Springer, vol. 61(6), pages 831-879, December.
    7. Christian Felzensztein & George Saridakis & Bochra Idris & Gabriel P. Elizondo, 2022. "Do economic freedom, business experience, and firm size affect internationalization speed? Evidence from small firms in Chile, Colombia, and Peru," Journal of International Entrepreneurship, Springer, vol. 20(1), pages 115-156, March.
    8. Chidlow, Agnieszka & Wang, Jue & Liu, Xiaohui & Wei, Yingqi, 2021. "A co-evolution perspective of EMNE internationalization and institutions: An integrative framework of 5Cs," International Business Review, Elsevier, vol. 30(4).
    9. Ayden, Yuksel & Tatoglu, Ekrem & Glaister, Keith W. & Demirbag, Mehmet, 2021. "Exploring the internationalization strategies of Turkish multinationals: A multi-perspective analysis," Journal of International Management, Elsevier, vol. 27(3).
    10. Alvaro Cuervo-Cazurra & Bernardo Silva-Rêgo & Ariane Figueira, 2022. "Financial and fiscal incentives and inward foreign direct investment: When quality institutions substitute incentives," Journal of International Business Policy, Palgrave Macmillan, vol. 5(4), pages 417-443, December.
    11. Buckley, Peter J. & Enderwick, Peter & Hsieh, Linda & Shenkar, Oded, 2024. "International business theory and the criminal multinational enterprise," Journal of World Business, Elsevier, vol. 59(5).
    12. Mazé, Dominique & Chailan, Claude, 2021. "A South-South perspective on emerging economy companies and institutional coevolution: An empirical study of Chinese multinationals in Africa," International Business Review, Elsevier, vol. 30(4).
    13. Ronaldo Parente & Ke Rong & José-Mauricio G. Geleilate & Everlyne Misati, 2019. "Adapting and sustaining operations in weak institutional environments: A business ecosystem assessment of a Chinese MNE in Central Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 275-291, March.
    14. Friel, Daniel, 2021. "Breaking the looking glass: Understanding how emerging market multinationals develop unique firm-specific advantages," Journal of International Management, Elsevier, vol. 27(3).
    15. Castellões, Bernardo & Silva-Rêgo, Bernardo & Dib, Luís Antônio, 2023. "Understanding divestment from an Uppsala school perspective," Journal of International Management, Elsevier, vol. 29(5).
    16. Yunok Cho & Nigel Driffield & Sourindra Banerjee & Byung Il Park, 2023. "Returns to Internationalization: Business Group-Affiliated Firms vs Standalone Firms," Management International Review, Springer, vol. 63(4), pages 603-639, August.
    17. Peter Tashman & Valentina Marano & Tatiana Kostova, 2019. "Walking the walk or talking the talk? Corporate social responsibility decoupling in emerging market multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 153-171, March.
    18. Remzi Gözübüyük & Carl Joachim Kock & Murat Ünal, 2020. "Who appropriates centrality rents? The role of institutions in regulating social networks in the global Islamic finance industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(5), pages 764-787, July.
    19. Deng, Ziliang & Yan, Jiayan & van Essen, Marc, 2018. "Heterogeneity of political connections and outward foreign direct investment," International Business Review, Elsevier, vol. 27(4), pages 893-903.
    20. Michelle Yang, K. & Tang, Jintong & Donbesuur, Francis & Adomako, Samuel, 2023. "Institutional support for entrepreneurship and new venture internationalization: Evidence from small firms in Ghana," Journal of Business Research, Elsevier, vol. 154(C).

    More about this item

    Keywords

    emerging markets; EMMNEs; dynamic capability; institutional voids; China Speed;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:ehl:lserod:127244. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.