Dragon multinationals powered by linkage, leverage and learning: A review and development

Excerpt

In the decade and a half since I introduced the term “dragon multinationals” to describe latecomer firms internationalizing from countries like Brazil, India and China (then called the “periphery” of the global economy) there have been astonishing changes in the international business system. The internationalizing firms themselves have proliferated, with many of them now becoming completely globalized and taking their place among the world’s most advanced firms. From being latecomers dedicated to catch-up, many of them have now caught up and are moving from imitation to innovation. The core countries witnessing these changes have themselves assumed a stronger profile in world affairs (as the G20 takes over global leadership from the G7). And the strategic framework that I suggested underpins the success of internationalization efforts by latecomer multinationals, namely that they develop linkage, leverage and learning capabilities to accelerate their internationalization, has itself had to evolve and accommodate to the new circumstances. Scholars are now contributing refinements to the original framework that keep it relevant to fast-moving global conditions. In this paper I review these changes, pointing to the areas of continuity as well as some of the more significant refinements. …