AIB 2012 Conference Proceedings - Academy of International ...

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Firms (ERISFs). The paper initially tracks the evolution of the key concepts which have been imported from
the field of entrepreneurship and applied within International Business (IB). The paper then defines
International Entrepreneurial Opportunity and International Entrepreneurial Opportunity Development (IEOpD).
International Entrepreneurial Opportunity Development (IEOpD) is then modelled as a process which is directly
linked to four main factors. The first three factors; the founder's prior experiences, the firm's network ties and
the domestic market context act as the enablers, which make IEOpD possible. The firm's cross border formation
activities are conceptualised as an outcome of IEOpD. The relationship between each IEOpD and each of these
four factors is illustrated using four examples of early rapidly internationalising South African firms operating
within the software and biotechnology sector. The paper concludes by positioning IEOpD as the key construct
defining the internationalisation of the Early Rapidly Internationalising Small Firm (ERISF). (For more
information, please contact: Shingairai Grace Masango, Sheffield Hallam University, United Kingdom:
s.masango@shu.ac.uk)
Session: 1.1.12 - Interactive
Track: 8 - Developing Country MNCs
Internationalization of Developing Economy Firms: Processes and Capabilities
Presented On: July 1, 2012 - 09:00-10:15
Chair: Masaaki Kotabe , Temple University
Dynamic Capability - Building in Emerging Market Firms (EMF): The Effects of Firm-Level Antecedents, Physical
and Institutional Infrastructure on Lean Capabilities
Omar Malik,
Crystal Jiang, Bryant University
In this study we develop and test a model of Emerging Market Firms' (EMF) dynamic capability-building.
Drawing on the dynamic capabilities view and institutional theory, we argue that firm-level, infrastructural, and
institutional antecedents matter to EMFs' lean capability-building efforts. We tested hypotheses derived from our
framework on a sample of 1,702 firms from Brazil, China, and India. Results show that human capital
development and process management capabilities, at the firm-level, are associated with lean capabilitybuilding.
At the country-level, physical and communication infrastructure significantly influenced EMFs' lean
capability building efforts. At the institutional level, regulatory institutions had a negative effect on EMF lean
capability building; however cognitive institutions positively influence firms' lean capabilities. In terms of
normative institutions, uncertainty avoidance was positively associated with EMFs' lean capability-building, while
the interaction between power distance and human capital development had a negative impact on lean
capabilities. Although, we find mixed support for our hypotheses, our results strongly suggest that
infrastructural and institutional factors influence EMFs' dynamic capability-building after controlling for firm
characteristics. (For more information, please contact: Crystal Jiang, Bryant University, USA:
cjiang1@bryant.edu)
Rags to Riches: Experiences of Emerging Market Firms
Tanvi Kothari, University of Wisconsin Oshkosh
Masaaki Kotabe , Temple University
One of the emerging phenomena of global competition is the increasing number of business innovations
originating from emerging economies and spreading to developed nations. A predominant set of players,
perhaps initiators of such innovations are the Emerging Market Firms (EMFs) who have survived in the rough
institutional environments in their home turfs and are now participating in the global marketplace. The
prominence of multinational firms from emerging markets has challenged our assumptions about the nature of
AIB 2012 Conference Proceedings
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