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Management International Review
Published in: Management International Review 6/2008

01-12-2008 | Research Article

Knee Deep in the Big Muddy: The Survival of Emerging Market Firms in Developed Markets

Authors: Stewart R. Miller, Douglas E. Thomas, Professor Lorraine Eden, Professor Michael Hitt

Published in: Management International Review | Issue 6/2008

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Abstract and Key Results

This study of Latin American banks located in the United States employs a resource-based framework to explain how subunits of emerging market firms can overcome the challenges of operating in a developed market.
Our results show that an EMF subunit can draw upon ethnic identity as a valuable and costly-to-imitate resource to achieve competitive parity in the developed market.
Ethnic resources can be generated not only from ethnically similar customers but also from ethnically similar competitors in the local market.
In addition, the parent firm’ level local and non-local resources can help to achieve competitive parity for the EMF subunits in that country, which in turn positively influences survival.
However, over expansion can lead to spreading local and non-local resources too thin, thus adversely affecting survival.
next article Market Size, Legal Institutions, and International Diversification Strategies: Implications for the Performance of Multinational Firms

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Footnotes
1
We thank an anonymous reviewer for this suggestion.
 
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Metadata
Title
Knee Deep in the Big Muddy: The Survival of Emerging Market Firms in Developed Markets
Authors
Stewart R. Miller
Douglas E. Thomas
Professor Lorraine Eden
Professor Michael Hitt
Publication date
01-12-2008
Publisher
SP Gabler Verlag
Published in
Management International Review / Issue 6/2008
Print ISSN: 0938-8249
Electronic ISSN: 1861-8901
DOI
https://doi.org/10.1007/s11575-008-0101-1

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