Research Handbooks in Business and Management series
Edited by Mehmet Demirbag and Attilia Yaprak
Introduction: the rise of internationalizing firms from emerging markets
The rise of emerging markets (EMs) in the new world economic order is perhaps the most significant international business phenomenon today. Khanna and Palepu (2010) explain this by the meteoric rise of these economies, fueled by rising expectations of their burgeoning middle classes creating new markets for every product; their large and low-cost but well-educated labor pools, and high technological and managerial skills; and the growing entrepreneurial classes in them pursuing opportunities for innovation and prosperity. It is clear that the confluence of rapid globalization and technological advances has kindled a revolution in EM consumers to actively participate in the emerging global consumer culture and has energized their firms to partake in the many roles that make up global value chains. The outward foreign direct investments (OFDIs) of EM firms – such as Haier, Baosteel, Huwai Technologies and Lenovo (China); Tata, Ranbaxy, Wipro, and Infosys (India); Embraer and AmBev (Brazil); Gazprom (Russia); SAB Miller (South Africa); Arcelik (Turkey); Teva (Israel); and Cemex (Mexico) – have sometimes outpaced those of their developed economy counterparts, reversing the decades-long foreign direct investment (FDI) trends of the past century.