Document Type

Journal Article

Department/Unit

Department of Management

Title

Strategy in emerging economies and the theory of the firm

Language

English

Abstract

Indigenous emerging economy (EE) firms are increasingly competing in global markets or against multinational corporations (MNCs) in their home markets. But their institutional context at the national and local levels often suffers from what has been termed "institutional weakness" which is believed to put them at a competitive disadvantage on the global playing field. Yet little is known about how EE institutional weakness at the national level translates into competitive disadvantage at the firm level. In this perspectives paper, we examine this shortcoming in the literature. We utilize three popular theories of the firm-neoclassical economics, the resource-based view, and the nexus of contracts view-to examine how EE institutional weakness at the national level affects strategic choices at the firm level. We then explain how these strategic choices affect firm boundaries, internal organization, and the nature of competitive advantage for firms in EEs. © 2014 Springer Science+Business Media New York.

Keywords

Emerging economies, Institutions, Strategic choices, Theory of the firm

Publication Date

2014

Source Publication Title

Asia Pacific Journal of Management

Volume

31

Issue

2

Start Page

331

End Page

354

Publisher

Springer Verlag

DOI

10.1007/s10490-014-9373-0

Link to Publisher's Edition

http://dx.doi.org/10.1007/s10490-014-9373-0

ISSN (print)

02174561

ISSN (electronic)

15729958

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