Large emerging markets (LEMs) and international strategy

Purpose - The purpose of this paper is to explore how the rise of large emerging markets (LEMs) has affected the business strategies of multinational enterprises. The growing importance of emerging markets has encouraged considerable research on strategy development when entering such markets. However, little attention has been paid to the question of how the rise of international businesses from LEMs will impact on strategy more generally, and in particular how established multinationals might be expected to react. Design/methodology/approach - This conceptual paper evaluates international strategy impacts of the rise of LEMs from the perspective of alternative market entry motives - for market access, for lower costs and learning opportunities. It discusses both strategic opportunities and likely impacts on strategy and structure. Findings - The discussion suggests that the rise of LEMs has stimulated the internationalisation of international business and has increased specialisation within the world economy. A number of Asian "dragon multinationals" are using emerging markets to advance their global competitiveness. Originality/value - This paper offers a more balanced perspective on the impact of the rise of emerging markets on international strategy. Analysis highlights a range of strategic benefits resulting from engagement with LEMs. The discussion is illustrated with numerous examples.