HEC Paris2014-08-12 2:47 PM

The Expansion of Emerging Economy Firms into Advanced Markets: The Influence of Intentional Path-Breaking Change


Existing literature has investigated the drivers behind the expansion of emerging market firms into other emerging markets, but we are only beginning to understand how emerging market firms expand into more advanced markets. Grounding our arguments in institutional theory and the notions of managerial intentionality and path-breaking strategies, we argue that emerging market firms can intentionally pursue path-breaking changes that set them on an organizational path better suited to advanced market conditions, by listing their stock on advanced financial markets or divesting unrelated business. We test our arguments on a sample of 855 emerging market firms from 18 countries over a six-year period. Our results strongly support our argument that emerging market firms can intentionally change their organizational paths and develop the ability to expand into advanced markets.


Journal Information

Global Strategy Journal, May 2014, vol. 4, n°2, pp.75-103


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HEC Paris

Founded in 1881 by the Paris Chamber of Commerce and Industry, HEC Paris specializes in education and research in management sciences. As a leading academic institution in Europe and worldwide, HEC Paris offers a complete and unique range of education programs for students and leaders.

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