Emerging-market firms innovate and escape to thrive internationally, defying underdevelopment.
The article explores how where a company comes from affects how it expands internationally. Companies from less developed countries can use their homegrown innovations to do well in other emerging markets, which is called innovation-based internationalization. Alternatively, they might go to more developed countries to escape the problems they face at home, known as escape-based internationalization. This means that companies have to work harder to stay competitive when they go global.