Globalization from emerging economics strategic groups & choices

Abstract

This study is aimed at studying the patterns emerging in globalization of emerging economies in general and India in particular. While pioneering globalizers from emerging economies have been studied in fair detail in existing literature, late globalizers from these late globalizing economies have been a relatively recent phenomenon to be covered in literature. And there are enough reasons to doubt whether patterns derived by studying pioneers are applicable as such to late globalizers. With pioneers having established the quality of their products abroad and, thus, demonstrated the emerging economies’ capability, the liabilities of origin faced by pioneers during early globalization may no longer have major influence on the strategic choices made by late globalizers. With pioneers having already leveraged India’s labor arbitrage in developed markets, late globalizers may not have that much opportunity in just cost arbitrage. In this study, we attempt to identify the factors that determined success in different phases of Indian globalization. Towards this end, we identify the strategic groups emerging in internationalization of developing economies like India and contrast the strategic choices made by these groups in the process of their globalization.