Internationalisation and global competitive advantage: implications for Asian emerging market multinational enterprises

The purpose of this study is to provide an integrated framework that conceptualises multifaceted antecedents pertaining to international expansion of emerging market businesses in relation to firm performance. This paper develops multiple-item measures of multiple-dimensions to clarify how internationalisation path, R&D investment, product diversification, FDI, foreign ownership affect emerging market MNEs performance in a sample of 115 Asia Pacific MNEs over the period 2002-2006. The result shows that the relationship between internationalisation and firm performance is a non-linear relationship (a three-stage theory of international expansion). The results also indicate that moderate product diversification can increase emerging market MNEs' capacities to exploit different market opportunities when they engage in foreign activity. By contrast, firm performance will turn out to be negative when MNEs heavily expand their product offerings and geographic markets.