Strategy Adopted by Emerging Asian Firms for Catching With Advanced Economies: 2 Strategy Adopted by CEO of a Firm to Turn It into “Dragon International”

MBA ASSIGNMENT MBA ASSIGNMENT 6 MBA Assignment Author Note: Introduction: 2 Strategies Adopted by Emerging Asian Firms for Catching With Advanced Economies: 2 Strategy Adopted by CEO of a Firm to Turn It into “Dragon International” 4 Conclusion: 5 References: 6 Introduction: The report aims at providing an insight into the strategies adopted by emerging Asian firms for catching up with advanced economies that ultimately helps it in becoming internationals. However, the strategies adopted by the emerging firms in catching up

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Table of Contents
Introduction:....................................................................................................................................2
Strategies Adopted by Emerging Asian Firms for Catching With Advanced Economies:.............2
Strategy Adopted by CEO of a Firm to Turn It into “Dragon International”..................................4
Conclusion:......................................................................................................................................5
References:......................................................................................................................................6

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Introduction:
The report aims at providing an insight into the strategies adopted by emerging Asian
firms for catching up with advanced economies that ultimately helps it in becoming dragon
internationals. The ascent of the East Asia as industrial power built on skillful adaptation and
learning of the advanced technologies in combination of relentless focus of penetration into the
western market did hold the world in admiration during the period 1980s to 1990s. Although the
financial crisis held the expansionism of Asia on the hold but it seemed to have set a path for the
leaner Asian Firm in manufacturing sector like steel, service sector like trading and hotel
operation and sectors having higher technology like flat panel display and semiconductors. The
firms were outsiders and latecomers but have been able to become global giants with the
appropriate set of strategies.
Strategies Adopted by Emerging Asian Firms for Catching With Advanced Economies:
According to the views put forward by Mathews (2006), the new comers observe the
world to be full of the competitors who will be trying to emulate success. The latecomers and the
newcomers viewed the world as full of resources to be tapped easily provided there existed
appropriate devising of the organizational forms along complementary and appropriate
strategies. In other words, they were viewed by the emerging firms based on converse
characteristics that include non- transferability and inimitability. On the other hand, these firms
will possess different perspectives by looking for the ways of accessing the required resources by
forming a linkage with the source firms abroad and thereby accept internationalizing for having

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an access to the resources that they lack. Thus, such newcomer firm treated as harbingers of a
new type of multinational enterprise that perfectly adapts to the new conditions put forward by
the globalization (Li & Ding, 2013). In the context of these firms, globalization is represented
not as a process that gets dominated by uniformity, homogenization and convergence but as a
process that leads to the generation of multiple futures put forward by the firms in the periphery
and the firms at the centre. However, the strategies adopted by the emerging firms in catching up
with the advanced economies are as follows:
Adoption of Accelerated Internationalization: The emerging firms referred as the
latecomers and the newcomers used previous international connections, enhanced their
expansion through by acting as contractor to existing multinational or relied on the global
customers for carrying them to the newer markets (Marshall, 2013). Such firms thus led to the
execution of the ‘gestalt switch’. Thus, a firm making ‘gestalt switch’ makes it foreign venture
not only in a single foreign market but also in the world. It begins with a view of pursuing global
customers as they help in maximizing the international advantage. In this case, each of the moves
seen to add a piece of expanding pattern that was global in scope.
Adoption of Organizational Innovation: The emerging firms adopted various forms of
global organization that ranged from unconventional clusters of global cellular firms to
integrated global operations based on web (Meyer & Thaijongrak, 2013). However, such firms
had begun to accept internationalization that was already equipped with the global outlook. Acer,
which is now a dragon international, adopted organizational innovation through the creation of
global cluster of businesses that were semi-autonomous in nature that interacted with one another
as well as the customers and the suppliers. The autonomy created through this cellular

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architecture along with the encouraged business initiatives ensured that the company do not
suffer from the problems of initiative and morale related to the subsidiary head quarter.
Adoption of Strategic Innovation: Through this strategy, the emerging firms found
innovative means that enabled them in making space for them in the market that remained
crowded with capable firms (Young et al., 2014). Viewed in own terms the emerging firms found
newer ways like offering the contract services, licensing newer technologies, forming strategic
alliances and the joint ventures. Thus, through implementing the complementary strategies these
firms were able to keep up with the developed global economy based on the capacity for
leveraging the resources from others strength through international connections. The strategies of
internationalization designed for enhancing the resource base of the firm instead of exploiting the
existing assets put forward an essential departure in the thought process of firms in
accomplishing globalization.
Strategy Adopted by CEO of a Firm to Turn It into “Dragon International”
The strategy adopted by the CEO of a particular firm in turning it into Dragon
International would be accelerated internationalization. This is explained in terms of an eclectic
theory of internationalization in the form of an OLI framework put forward by Dunning (2015).
He discussed three characteristics derived from the advantages of the international firms in
expanding the operations abroad. The first included potential advantages that a firm can derive
through extension of its proprietary assets that included proprietary technologies and the brand
that brought together firepower that enabled them to beat the domestic competitors in the host
market also referred as ownership advantage(Dunning, 2014 ). The second represented the
potential advantage in integrating the activities across the various sectors in the world with

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different resource and factor cost also referred as location advantage. The third potential
advantages derived from the scope of internationalization of activities and building of economies
of scale that in otherwise were dispersed between the numerous firms (Ellram, Tate & Petersen,
2013). Thus, the principle of internationalization put forward by the framework will helps an
emerging firm in deriving the advantages through expanding abroad for the access of a resource,
a case which is quite suitable for an emerging firm to turn into a ‘dragon international’
Conclusion:
To conclude, one can say that globalization of the 21st century likely gets characterized
by the enhanced integration of medium and small sized firms in the global networks for
movement of the good, flow of knowledge and the information and production. The features
brought in through the globalization factor will put forward newer opportunities for involvement
for the medium and small sized firm of Asia thereby leading to constant pressure of the
incumbents. Therefore, the international economy with time will become a point of source for
endless innovation.

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References:
Dunning, J. H. (2014). The Globalization of Business (Routledge Revivals): The Challenge of the
1990s. Routledge.
Dunning, J. H. (2015). Reappraising the eclectic paradigm in an age of alliance capitalism.
In The Eclectic Paradigm (pp. 111-142). Palgrave Macmillan, London.
Ellram, L. M., Tate, W. L., & Petersen, K. J. (2013). Offshoring and reshoring: an update on the
manufacturing location decision. Journal of Supply Chain Management, 49(2), 14-22.
Li, F., & Ding, D. Z. (2013). The effect of institutional isomorphic pressure on the
internationalization of firms in an emerging economy: evidence from China. Asia Pacific
Business Review, 19(4), 506-525.
Marshall, R. (2013). Emerging urbanity: global urban projects in the Asia Pacific Rim.
Routledge.
Mathews, J. A. (2006). Dragon multinationals: New players in 21 st century globalization. Asia
Pacific journal of management, 23(1), 5-27.
Meyer, K. E., & Thaijongrak, O. (2013). The dynamics of emerging economy MNEs: How the
internationalization process model can guide future research. Asia Pacific Journal of
Management, 30(4), 1125-1153.

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Young, M. N., Tsai, T., Wang, X., Liu, S., & Ahlstrom, D. (2014). Strategy in emerging
economies and the theory of the firm. Asia Pacific Journal of Management, 31(2), 331-
354.