IBUS 4560: Dragon Multinationals as New Players in Globalization

This report examines the impact of globalization on global business, focusing on the emergence of Dragon Multinationals as key players. It discusses challenges and opportunities for multinational corporations, defining key terms like globalization, Dragon Multinationals, accelerated internationalization, organizational innovation, and strategic innovation. The report aims to analyze how newly arising companies, particularly those from the Asia Pacific region, have become leading global market players through strategic and technological advancements. It explores the potential risks faced by incumbent companies due to globalization and the rise of new competitors, while also considering the positive and negative impacts of globalization on economies and individual organizations, including resource consumption and strategic innovations. The objectives include identifying opportunities and challenges in the 21st-century global business, understanding shifts in globalization, and recognizing the strategies needed by both established and emerging players.

Running head: DRAGON MULTINATIONALS
Dragon Multinationals: New Players in 21st-Century Globalization
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Abstract
This report is about discussing the impact of globalization on the global business. The main
theme of this report is an understanding of dragon multinationals, which are the new players in
the globalization. However, it broadly discusses the challenges, and opportunities as a whole for
multinational corporations.

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Table of Contents
1. Introduction..................................................................................................................................3
1. A Key words............................................................................................................................4
1. B Purpose.................................................................................................................................6
1. C Objectives.............................................................................................................................7
1. D Roadmap..............................................................................................................................8
2. Body.............................................................................................................................................9
2.1 Problem..................................................................................................................................9
3. Literature review........................................................................................................................11
4. Framework for the solution.......................................................................................................24
Recommended Frameworks as Solutions..................................................................................25
Conclusion.....................................................................................................................................27
References......................................................................................................................................29

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1. Introduction
Globalization can be categorized as old globalization and new globalization. The old
globalization has witnessed the emergence of China into the world's factory. However, scenes
have changed again with the next phase of globalization has arrived. The major reason behind
this fact is the growing emergence of new technologies and the emergence of new MNEs.
Emerging nations have become the new hub for a business relationship. MNEs are heading
towards emerging countries because of many reasons. Emerging nations are being targeted for it
offers cheap labor and raw material costs. As per a forecast made by McKinsey Global Institute,
a close to 45% of billion dollar plus companies will have their base in emerging countries (Yale
Insights 2018). By the end of the decade, more than half of the total world population will have
access to the internet (Yale Insights 2018).
The above section gives an introduction to what a few of changes are taking place in a
globalized business environment. Due to the emergence of globalization, there are large-scale
innovations taking place in the market. However, it has to be noticed that the benefits of
globalization are not being used by all the industries in the same way. There are some industries
that have already been able to internationalize themselves like the Uber. They have been able to
utilize the effects of the globalization in the best way possible (Velthuis & Curioni, 2015). They
have been able to enter into the Global market in a very apt way.
They have been able to develop and maintain the correct form of technology in order to
make sure that they get a good hold over the world market. They have able to enter about 80
countries within the span of just six years. The companies from the Asia Pacific regions have
been able to utilize the impacts of globalization in such a positive manner mainly because of the
fact that they have the exact amount of expertise that is needed for the purpose of flourishing in

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the Global market. However, there are some problems that are arising in the Global market as
well. The companies that already exist like the incumbents might face a challenge as they are
still sticking to the old models of globalization. This assignment has mainly dealt with the
analysis of the different impacts of Globalization.
1. A Key words
Globalization, can be defined as a process that creates opportunity to people, companies,
and government to interact, and integrate with that of the others. It is a process that is being
facilitated and driven by foreign direct investment (FDI), information technology, and
international trade. It has an influence on the environment, the culture, the economic
development, and the political systems (Globalization101, 2018).
Dragon Multinationals, these are the organizations that have contributed to a change in
the global business. It now appears as if these companies have understood globalization better
than the existing multinational corporations (Mathews, 2006). These firms have emerged to be
one of the preferred choices for customers, suppliers, and investors. Customers, for example,
have found “Acer’s Laptops” as a good buy within their budget. It is to be noted that Acer gives
tough competition to many biggies in terms of laptops’ selling. These biggies include but not
limited to like Samsung, Sony, and Compaq etc. (TechRadar, 2018)
Accelerated Internationalization, can be considered to be related with latecomers or
newcomers. These latecomers have reached to the global platform in time less than what is being
consumed by many established and reputed MNEs to do so. However, in other way, newcomers
do not follow an incremental internationalization. Indeed, Triad MNEs and Incumbent MNEs do
follow this. Triad MNEs, and Incumbent MNEs actually follow a sequential process such as

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adding one after another global market to its domestic business (Benson-Rea et al., 2016).
However, Dragon Multinationals have been different in this regard. They are intended to pick up
what is required to become a global company. Each move can be seen as adding another feather
in the wing of international expansion.
Organizational Innovation, can be seen as a common thread between several latecomers
and newcomers. These organizations have shown that they wish to operate at the global platform
from very beginning of their business. It can be seen in largely unconventional worldwide
cellular clusters. This can also be viewed in integrated global operations such as Ispat. In all
these cases, these firms began with a global outlook. They constantly relied on innovation to get
established and deliver the business of international level. For example, Acer did strive to
promote and facilitate the company as a semi-autonomous businesses. By doing this, the
company was able to create a global cluster where there will be limited issues concerning a
coordination with subsidiary branches (Globalbrandsmagazine, 2018). It is to be noted that
communication with subsidiary branches has by and large remained an issue with multinational
companies. With this, Acer was able to implement a common set of rules and regulations
following which decisions were made at each headquarter branches with little or less complexity.
Acer did not just use this strategy to provide it a symbolic point of reference but also as a
marketing stunt.
Strategic Innovation, was another essential key that helped latecomers to earn a
recognition in the crowd of established biggies. These and many others had needed to explore
their capabilities in innovation to be able to gain a spot among reputed organizations. They had
done it so. They could do it by offering contract services, forming strategic alliances and joint
ventures, and licensing new technologies (Ghezzi et al., 2015). It was more because of these

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complementary services that newcomers were able to create their own identity and soon became
one of the leading names in their respective industry. This can be said that to be so
internationally placed in a globalized world is a unique advantage.
1. B Purpose
The purpose of this paper is mainly to analyze how the newly arising companies were
able to develop themselves as one of the leading companies of the Global market. The term
Dragon Multinationals (Mathews, 2017).” is mainly used to refer to the group of companies that
have risen from the Asia Pacific region. The companies like the Acer, Ispat, Li& Fung and others
(Baylis, Smith & Owens, 2017). These companies belong from the Asia Pacific regions have
been able to find their places within the huge competition as they have a brilliant strategy and
technological setup. Thus, one of the basic purposes of this assignment was to see how these
companies from the Asia Pacific regions are being able to prosper on the long run in this age of
Globalization (Giddens, 2018). In other words, the purpose is to assess if the globalization model
or the strategies used by the Dragon Multinationals is correct or not. Thus, it can be said that the
purpose is to find out the effects of Globalization on the overall economy and also on the
individual organizations. The only way in which the companies can survive the effects of
globalization are equipping themselves with knowledge and skills. The purpose of the paper was
to see how the companies at the periphery have a high tendency of moving into the center. None
of the organizations are staying back and are trying their level best to acquire the technology.
The other purpose of this paper was also to see the impending risks that the companies at the
center might face from the newcomers or the latecomers. These new and evolving firms made
constantly upgrading themselves and moving into the center, thus there is a huge chance of
competition arising in the market.

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The other purpose of the paper is to see the impending risks that the companies might
face due to the arrival of the Globalization. This is because the companies that already exist in
the market particularly termed as incumbents might find it tough for to develop themselves. They
are likely to face a very tough competition from the latecomers or the new firms in the market.
There is a rising pressure from the boundaries or the peripheries because of the Globalization.
Due to the upcoming trends in the global or the International market, the firms from the
periphery have a high tendency of moving into the center. This is likely to have some impacts on
the economy and the individual companies as well. On one hand, this might have a positive
impact on the company as a whole. This is because they will be able to generate a good source of
income for some of the people who are engaged in the sectors like the steel production, contract
manufacturing, hotels, financial services and others (Donati, 2017). The positive impacts of the
Global economy can be seen from the fact that the later and the newcomer's firms have been able
to utilize the new and innovative strategic and organizational innovations.
On the other hand, there is the chance of some negative impacts on the economy as well.
The resources of the economy are being consumed at a very rapid rate. For an instance, China
was suffering from the increased use of coal and this was an alarming fact. Due to the increasing
amount of Globalization, the companies are using up more amount of resources. This, in turn,
can create a huge stress on the production of the individual company and the economy as a
whole.
1. C Objectives
 To identify opportunities in particular the challenges for the global business in the 21st
century
 To identify the possible shift in globalization in the 21st century

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 To understand the business needs that required to be fulfilled by both newcomers, and
latecomers
The first objective will try to inspect opportunities and challenges for the global business
in the 21st century. Both old and new globalization has witnessed industrial revolutions, which
impacted the way of doing the business, and the consumer behavior.
The second objective identifies the possible shifts, which the new globalization will bring
to the global business. For example, supply chain networks were more in physical form during
the old globalization. However, this will now witness a big shift as physical networks will start
converting into Industry 4.0. It means the network will have devices, companies, and consumers.
The third objective is about understanding the strategies needed by both old and new
players of globalization in the 21st century. It is to be noted that new players of globalization
have performed much better than the old. However, both old and new players can face
challenges from a shift in manufacturing, and other business processes.
1. D Roadmap

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Introduction
1. Key Words
2. Purpose
3. Objectives
Body
1. Problem
Literature Review
Conclusion
Framework as solutions to identified problems
Dragon MultinationalsGlobalization
Strategic Innovation n
Accelerated Internationalization
Organizational Innovation
Figure 1: A Roadmap Showing the Entire Report Journey
Figure 2: A Roadmap Showing the Key Words being used

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2. Body
Globalization is the most prominent and the dominant technology that is present in our
time. This is mainly helping the industries to utilize the latest amount of technologies and
innovations. In other words, it can be said that Globalization is the concept that brings into play a
large number of new technology in the field of financial systems, trade liberalization and other
such aspects. However, there can be problems due to the Globalization as well. This is mainly
because of the fact that the already existing companies operating at the center are at a risk as the
companies from the peripheries can start moving towards the center.
2.1 Problem
The main aim of this assignment was to see how the Dragon multinationals are using the
different strategies to overcome their problems. Though they have moved forward in a very
strategic manner, there is a chance that the resources might be finished up at a very rapid rate.
The old globalization has witnessed the emergence of China into the world's factory. However,
with the passage of time, it has been seen that China has also joined the World Trade
Organization in the year 2001. It was seen that the coal consumption of China was increasing
rapidly in the year 2002. It was naturally creating a huge stress on the coal reserves of China. It
was for this reason that there was a sharp rise in the total coal consumption in the world. One of
the problems is that the Globalization often shifts the jobs and the well-paying professions from
the developed countries to the less developed countries.
It is both good and bad at the same time. This is because the centers or the less developed
countries will develop but at the same time, the employment opportunities from then centers are
decreasing. This is mainly because of the fact that there is a fear of the companies or the

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organizations at the periphery moving closer towards the center. This will indeed turn out to be a
very alarming situation. The newcomers or the new firms have the best quality expertise present
with them. As for instance, the Dragon multinationals do not have a good amount of skilled
labor, abundant resources or other such facilities. For an instance, the newcomers like Acer,
Ispat, Uber have gained a huge amount of importance in a very short period of time. This shows
that they have a very well developed market penetrating strategy.
This can also be understood the fact that a large number of jobs are shifting from a high-
cost structure re shifting to the less developed economies having a lower cost structure. All the
jobs are shifting from an OECD country like the United States. One of the problems is that
Globalization has not yet received a good attention from all the parts of the Globe. As a result of
this, the periphery or the organizations at the periphery can gain an advantage over the
companies at the center. There is also the chance that there can be a shift in the pattern of
investment. As Globalization increases, the newcomers or the latecomer companies are moving
towards the center and are becoming make competitive in nature. The investors will naturally
like to invest in those firms that can provide them with higher rates of returns. Thus, the level of
investments in the already developed companies in the periphery is likely to decrease.
3. Literature review
According to Gilpin (2018) in the recent volatile business environment, globalization is
acting as a driving force that is being imposed on the corporate entities and thereby leading them
to gain unique business related ideas. Rapid development of globalization is playing a major role
in ensuring free flow of ideas, both human and monetary resources along with products and
services, which is very much needed for the integration of economy and society. As the outcome
of promptly emerging cross-border trade, condition of world economy is being strengthened in a