Introduction
Interdisciplinary perspectives on the middle class phenomenon in emerging markets

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Introduction

The rise of the middle class (MC) in rapidly transforming economies of East Asia, Latin America, Africa and the Middle East is one of the most remarkable megatrends of recent decades. Given the magnitude of the changes felt by vast numbers of households across the globe, as well as the importance the issue holds in the realms of society, politics, business, economics and culture, examining the middle classes in emerging markets (EMs) has become a topic of investigation, and in multiple areas of academic inquiry.

While a consensus definition does not exist, the middle class generally refers to a growing number of households in EMs who now have access to a substantial disposable income that they can direct toward discretionary purchases – e.g. cars, home appliance, better housing, private education for children, leisure, and so forth. One practical benchmark for delineating this group is having at least 30 percent of total household income available for discretionary consumption.

Yet, the rise of the middle class households in EMs is a multifaceted phenomenon signifying changes beyond discretionary consumption. Other factors by which middle class status can be defined include educational and professional achievement, political attitudes and participation, lifestyles, cultural values, or simply self-identification. The evolution of middle class is also correlated with rapid urbanization – along with its consequences (e.g., housing and real estate pressures, unequal access to infrastructure between Tier 1 and Tier 2 cities, etc.). Finally, the rise of middle class in EMs heralds profound changes in societal values. Examples are: savings versus spending proclivity, attitudes toward borrowing, work-life balance, definition of success, religious practices, and individualism orientation.

Thus, business and economics scholars are not alone in studying the MC phenomenon. Scholars from such disciplines as media, communication, sociology, anthropology, political science, education, history, urban studies, and geography are also actively examining this topic. A special interest of some scholars is to contrast the contemporary developments in EMs with those already experienced by mature, post-industrial economies. Some also approach the middle class as a social phenomenon that derives meaning from social and cultural practices, while others treat it as political power with the capacity to shape a country's social, political, economic and cultural landscape.

The rise of the middle class has many important implications for international business and the processes of globalization. These arise not only because of the consumption requirements of the middle class, but also in issues such as gender equality, income equality and the environmental implications of the new patterns of consumption. There are also important fiscal consequences in terms of taxation and its role in funding the “developmental state” and macroeconomic effects arising from debt. The relationship between the rise of middle class consumption and the “middle income trap” remains to be fully examined. All these issues represent new opportunities for international business researchers.

We contend that the middle class phenomenon is one of the most profound aspects of contemporary growth markets, whether it is Brazil, China, Indonesia, Poland, South Africa, or Turkey. While business and economics scholars have begun to pay special attention to this topic, and are now producing empirical findings, we can benefit from the observations and conceptualizations of fellow researchers in related disciplines as well. Clearly, a multi-disciplinary, holistic understanding the middle class phenomenon, is needed.

In addition, we need to examine country variations, recognizing that each EM has exhibited a different trajectory in forming its middle class. Middle class households in different EMs may face different issues and embody a wide range of paradoxes regarding hope and anxiety, optimism and discontent, stability and change, and so forth. Therefore, a comparative perspective can lead to some common understanding of this remarkable megatrend of our times.

Section snippets

The extant literature

Perhaps not unexpectedly, much of the early work on middle class in EMs has been carried out by leading-edge management consulting firms, including McKinsey, Accenture, Ernst & Young, and the Boston Consulting Group. Yet the scholarly community, in business and economics, and related fields, is following their lead. Researchers at the World Bank, the Asian Development Bank, and various think-tanks have also produced insightful empirical research and policy guidelines. In addition, two

Why this special issue

Through this issue, we first wished to encourage scholars from business, economics, and other social science disciplines to submit their relevant work. Thus, one aim is to present alternative viewpoints on the middle class phenomenon, and work toward a more holistic understanding of middle class. Second, we wanted to disseminate alternative metrics and methodologies scholars have advanced for quantifying middle class households in EMs. Third, we wished to call attention to the varying

In this issue

We are most pleased with the articles featured in this issue of International Business Review. The call for papers produced over 50 submissions. After multiple rounds of revision, eleven papers made the final selection. These represent a happy balance of conceptual vs. empirical, multi-disciplinary papers, addressing the experience of several emerging markets in building their respective middle class households.

Examining the ‘new’ middle class in Brazil via consumption of cruises, Ana Raquel C

S. Tamer Cavusgil currently serves as Fuller E. Callaway Professorial Chair and Executive Director, CIBER, at the J. Mack Robinson College of Business, Georgia State University, Atlanta, Georgia, USA. He is also a Visiting Professor at LUBS, University of Leeds, UK, and The University of South Australia Business School, Adelaide, Australia. A Fellow of the Academy of International Business, Tamer has authored more than a dozen books and over 200 refereed journal articles, dozen of them in the

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S. Tamer Cavusgil currently serves as Fuller E. Callaway Professorial Chair and Executive Director, CIBER, at the J. Mack Robinson College of Business, Georgia State University, Atlanta, Georgia, USA. He is also a Visiting Professor at LUBS, University of Leeds, UK, and The University of South Australia Business School, Adelaide, Australia. A Fellow of the Academy of International Business, Tamer has authored more than a dozen books and over 200 refereed journal articles, dozen of them in the Journal of International Business Studies. He also served as JIBS Consulting editor and EB member for about two decades. His work is among the most cited contributions in international business (about 15,000 citations in Google Scholar). His books include: International Business: The New Realities, 4th Ed., 2016, co-authored with G. Knight and J. Riesenberger, and Doing Business in Emerging Markets, 2nd Ed., co-authored with Pervez N. Ghauri, and Ayse A. Akcal, London: Sage Publications, 2013. Tamer holds a BS degree in business and economics from the Middle East Technical University in Ankara, Turkey. He completed his MBA and Ph.D. degrees in business and economics at the University of Wisconsin.

Peter J. Buckley, (BA (Econ), York; MA, East Anglia; PhD Economics, Lancaster, Dr hc (Uppsala); DSc hon (Lappeenranta) Dr. Merc.H.C. (Copenhagen)) is Professor of International Business, Founder Director of the Centre for International Business (CIBUL) and Founder Director, Business Confucius Institute all at the University of Leeds. CIBUL has been rated as the top international business research group in the world based on publications in leading journals. Peter has published 28 books, and many of these have been translated into other languages. He has edited 20 further books. Peter has published over 250 refereed articles in European, American and Japanese journals including 22 contributions in the Journal of International Business Studies. His work is very heavily cited – Google Scholar lists over 27,000 citations. He was elected a Fellow of AIB in 1985 for “outstanding achievements in international business”. He is also a Fellow of the British Academy of Management (BAM), a Fellow of the Royal Society of Arts (RSA) and a Fellow of the European International Business Academy (EIBA). In December 1998 he was made an Honorary Professor at the University of International Business and Economics, Beijing, China. He is also an Honorary Member of the 48 Group Club. He was President of the Academy of International Business 2002–2004. Peter was awarded the Viipuri Prize for his “Outstanding record in the field of International Business research” (September 2006). In August 2008 he was awarded the Academy of Management International Management Division, Booz Allen Hamilton Strategy and Business Eminent Scholar in Management Prize. He has been awarded Honorary Doctorates by the University of Uppsala, Lappeenranta University of Technology and Copenhagen Business School. Peter was awarded the Cheung Kong Scholar Chair Professor in the University of International Business and Economics (UIBE), Beijing, 2010. He has been awarded the Richard Whipp Award (British Academy of Management) “For considerable and sustained contribution to International Business”, 2011 and was Senior Advisor to World Development Report (UNCTAD) 2011. He was awarded the OBE for “services to higher education, international business and research” in 2012. He was elected a Fellow of British Academy (FBA) in July 2014.

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