How emerging markets firms will become global leaders

Purpose - Over time the countries characterized as "emerging" change, and some of the companies from these countries become world leaders even as many of those from traditional economic powers fade. There is nothing guaranteed about success of companies from emerging markets (EMs), other than the fact that some of the firms that do survive will be among the success stories of the future. The purpose of this paper is to explore two questions: what enables companies from EMs to compete with existing firms? Is there a conceptual structure that is best for analyzing these firms and their strategies? Design/methodology/approach - This paper discusses the strengths of EM multinational enterprises (MNEs) from the perspective of Dunning's eclectic view, and gives four detailed examples of companies from this perspective. Findings - It is suggested that while the eclectic view offers excellent insight into EM MNEs, an analysis of their strategies and policy implications requires further perspective such as through the global value-added chain. Research limitations/implications - No single model will capture all of the important features of EM MNEs, but Dunning's view and the global value-added chain are good tools. Practical implications - Hopefully, both research analysts and company managers will be able to utilize the view presented here to better manage/understand EM MNEs. Originality/value - This view demonstrates a mechanism for exploring key elements of EM MNEs and by moving to the global value-added chain additional, original perspective is gained.