Table of Contents
Emerging markets..............................................................................................................2
Learning Objectives Emerging Markets.........................................................................................2
Lecture 1............................................................................................................................3
Paper 1: Khanna, T. and Palepu, K. G. (2010). ‘The nature of institutional voids in emerging
markets’, in T. Khanna and K. G. Palepu (eds), Winning in Emerging Markets: A Road Map for
Strategy and Execution: 13-26. Boston: Harvard Business Press...................................................8
Paper 2: Ramamurti, R. (2012). ‘What is really different about emerging market multinationals?
Global Strategy Journal, 2: 41-47.28...........................................................................................10
Lecture 2: Responding to Institutional voids: strategies of Developed MNEs.....................10
Paper 3: Doh, J., Rodrigues, S., Saka-Helmhout, A. and Makhija, M. (2017). ‘International
business responses to institutional voids’, Journal of International Business Studies, 48: 293-
307.............................................................................................................................................18
...................................................................................................................................................18
Paper 4: Mair, J. & Marti, I. (2009). ‘Entrepreneurship in and around institutional voids: A case
study from Bangladesh’, Journal of Business Venturing, 24:419-435..........................................18
Paper 5: Rodrigues, S. B. & Child, J. (2023). ‘The role of corporations in addressing non-market
institutional voids during the COVID-19 pandemic: The case of an emerging economy, Journal of
International. Business Policy, 6: 115-132...................................................................................21
Lecture 3 business plan Guest Lecture on Developing Effective Business Plans by Rob
Groenendaal....................................................................................................................22
Lecture 4: Innovation by SMEs in Emerging and Developing Markets...............................22
Paper 6: Robson, P. J., Haugh, H. M. & Obeng, B. A. (2009). Entrepreneurship and innovation in
Ghana: Enterprising Africa. Small Business Economics...............................................................25
Paper 7: Nguyen, Adomako & Ahsan (2023). The base-of-the-pyramid orientation and export
performance of Vietnamese small and medium enterprises.......................................................27
Differences between Nguyen et al. (2023) and Robson et al. (2009)...........................................28
Lecture 5: Guest lecture on Sustainable Business Model Innovation by Helene van Melle at
Tent Partnership for Refugees..........................................................................................31
Article 8: Bocken & Geradts (2020). Barriers and Drivers to Sustainable Business Model
Innovation..................................................................................................................................31
Lecture 6: SMEs in Emerging and Low-income Markets: Institutions and Resource
Constraints.......................................................................................................................35
Article 9 - Barasa, et al., (2017). Institutions, resources, and innovation in East-Africa...............35
Article 10 - Bradley et al., (2012). Barriers to innovation and innovation performance..............39
Article 11: De Oliveira, et al., (2022). Barriers to innovation and performance...........................41
Lecture 7: consultation with Fawad..................................................................................43
Lecture 8: Competing at home and going global...............................................................43
1
, Article 12: Aulakh et al (200) - Export strategies and performance of firms from emerging
economies: Evidence from Brazil, Chile an Mexico.....................................................................43
Article 13 - Luo & Tung (2007). International expansion of emerging market enterprises..........45
Article 14: Elia & Santangelo (2017). The evolution of Strategic Asset-Seeking Acquisitions by
EMNEs........................................................................................................................................49
Article 15 - McKague, Zietsma & Oliver (2015) Building the social structure of the market........51
Lecture 9: Inclusive Innovation for socio-economic development: BoP markets................54
Article 16 - Web et al., 2010: The Entrepreneurship Process in Base of the Pyramid Markets....55
The entrepreneurship process in base of the pyramid markets: MNE/NGO alliances (Webb et al.,
2010)..........................................................................................................................................56
Article 17 - Nahi (2016) Cocreation at the Base of the Pyramid: Reviewing and Organizing the
Diverse Conceptualizations.........................................................................................................59
Article 18 - Chmielewski, et al., (2020): ‘Business Unusual’: Building BoP 3.0.............................62
Lecture 10: Inclusive Innovation for Socio-economic development: Scaling and diffusion of
BoP models......................................................................................................................65
Article 18 - Chilova & Ringov (2016) Scaling impact: Template development and Replication at
the Base of the Pyramid.............................................................................................................65
Article 19 - Wieringa (2019) Uncovering the scaling of innovations developed by grassroots
entrepreneurs in low-income settings........................................................................................70
Article 20 - Kistruck et al., (2011) Microfranchising in Base-of-the-Pyramids Markets:
Institutional Challenges and Adaptations to the Franchise Model..............................................72
Lecture 11: Firm-level capabilities of emerging multinationals.........................................74
Article 21 - Lessard (2014): The evolution of EMNCs and EMNC thinking: a capabilities
perspective.................................................................................................................................74
Article 22 - Dieleman & Widjaja (2019): How powerful political ties appropriate resources and
how weaker organizations protect themselves..........................................................................78
Article 23- Carney et al., (2016): How are institutional capabilities transferred across borders? 79
Emerging markets
Learning Objectives Emerging Markets
Compare theoretical perspectives on institutional voids characterizing emerging
markets (
Analyze role of MNE and SME firm-level capabilities and institutional influences on
innovation in emerging and developing markets
2
, Asses extent to which institutional void-filling strategies can be used by MNEs, SMEs
and NGOs to innovate
Create a business plan
Lecture 1
Following an overview of the course aims and expectations, this lecture will provide an
understanding of what emerging markets are, and the structural features that distinguish
them from developed economies. In the second half of the lecture, you will be briefed on
the project company and what is expected from the IEM assignment by the co-founder &
Chief Operating Officer (COO) of YYTZ, a cashew processing company in Tanzania
Project company: YYTZ (cashes processing company)
Also producing cashew butter! (sales opportunity)
Issues to be addressed:
1. Target group: sales potential for YYTZ’s product
2. Competitive risk: number and size of competitors
3. Distribution and marketing channels
4. Institutional differences (product markets and associated regulations)
5. Social and economic impact of YYTZ’s export activity for Tanzania
Comparing countries
Market risk:
how much competition there is.
How to measure it? Number of direct competitors
market share
business opportunities.
3
, How to measure it? How many people are willing to buy it, and can they do it? Asses
also income level
marketing and sales channel. (retail shelves, hotels). Market research.
It is a premium product, not organic!
What are emerging markets?
Stagnation in the developed world -> looking for growth in an emerging market
Risky: regulation weak, corrupt, distributions are not that transparent
Benefit: source of cheap labor
Criteria for defining emerging markets (IFC, 1981):
Important to note that it has a high economic growth
To what extent does this criteria hold for judging a country to be an emerging
markets?
It holds in comparison with developed countries. Emerging market is in the
middle between developed and disfunctional country.
Emerging markets are characterized by institutional voids:
institutional voids (gaps in the institutional framework)
A fundamental distinguish characteristic where transaction costs are higher
Def: the absence or underdevelopment of specialized intermediaries such as database
vendors, and quality certification firms, regulatory corporations, and control enforcing
mechanisms (Khanna and Palepu, 2006)
imperfect markets in simple terms
High transaction costs in emerging markets
high start up procedures to register a business
much time required to build a warehouse
much time required to enforce a contract
much time required to register property
much time required to start a business
Do institutional voids need to be bad?
Not always bad, you can see it as an opportunity for innovations,
entrepreneurship, market development.
4
Emerging markets..............................................................................................................2
Learning Objectives Emerging Markets.........................................................................................2
Lecture 1............................................................................................................................3
Paper 1: Khanna, T. and Palepu, K. G. (2010). ‘The nature of institutional voids in emerging
markets’, in T. Khanna and K. G. Palepu (eds), Winning in Emerging Markets: A Road Map for
Strategy and Execution: 13-26. Boston: Harvard Business Press...................................................8
Paper 2: Ramamurti, R. (2012). ‘What is really different about emerging market multinationals?
Global Strategy Journal, 2: 41-47.28...........................................................................................10
Lecture 2: Responding to Institutional voids: strategies of Developed MNEs.....................10
Paper 3: Doh, J., Rodrigues, S., Saka-Helmhout, A. and Makhija, M. (2017). ‘International
business responses to institutional voids’, Journal of International Business Studies, 48: 293-
307.............................................................................................................................................18
...................................................................................................................................................18
Paper 4: Mair, J. & Marti, I. (2009). ‘Entrepreneurship in and around institutional voids: A case
study from Bangladesh’, Journal of Business Venturing, 24:419-435..........................................18
Paper 5: Rodrigues, S. B. & Child, J. (2023). ‘The role of corporations in addressing non-market
institutional voids during the COVID-19 pandemic: The case of an emerging economy, Journal of
International. Business Policy, 6: 115-132...................................................................................21
Lecture 3 business plan Guest Lecture on Developing Effective Business Plans by Rob
Groenendaal....................................................................................................................22
Lecture 4: Innovation by SMEs in Emerging and Developing Markets...............................22
Paper 6: Robson, P. J., Haugh, H. M. & Obeng, B. A. (2009). Entrepreneurship and innovation in
Ghana: Enterprising Africa. Small Business Economics...............................................................25
Paper 7: Nguyen, Adomako & Ahsan (2023). The base-of-the-pyramid orientation and export
performance of Vietnamese small and medium enterprises.......................................................27
Differences between Nguyen et al. (2023) and Robson et al. (2009)...........................................28
Lecture 5: Guest lecture on Sustainable Business Model Innovation by Helene van Melle at
Tent Partnership for Refugees..........................................................................................31
Article 8: Bocken & Geradts (2020). Barriers and Drivers to Sustainable Business Model
Innovation..................................................................................................................................31
Lecture 6: SMEs in Emerging and Low-income Markets: Institutions and Resource
Constraints.......................................................................................................................35
Article 9 - Barasa, et al., (2017). Institutions, resources, and innovation in East-Africa...............35
Article 10 - Bradley et al., (2012). Barriers to innovation and innovation performance..............39
Article 11: De Oliveira, et al., (2022). Barriers to innovation and performance...........................41
Lecture 7: consultation with Fawad..................................................................................43
Lecture 8: Competing at home and going global...............................................................43
1
, Article 12: Aulakh et al (200) - Export strategies and performance of firms from emerging
economies: Evidence from Brazil, Chile an Mexico.....................................................................43
Article 13 - Luo & Tung (2007). International expansion of emerging market enterprises..........45
Article 14: Elia & Santangelo (2017). The evolution of Strategic Asset-Seeking Acquisitions by
EMNEs........................................................................................................................................49
Article 15 - McKague, Zietsma & Oliver (2015) Building the social structure of the market........51
Lecture 9: Inclusive Innovation for socio-economic development: BoP markets................54
Article 16 - Web et al., 2010: The Entrepreneurship Process in Base of the Pyramid Markets....55
The entrepreneurship process in base of the pyramid markets: MNE/NGO alliances (Webb et al.,
2010)..........................................................................................................................................56
Article 17 - Nahi (2016) Cocreation at the Base of the Pyramid: Reviewing and Organizing the
Diverse Conceptualizations.........................................................................................................59
Article 18 - Chmielewski, et al., (2020): ‘Business Unusual’: Building BoP 3.0.............................62
Lecture 10: Inclusive Innovation for Socio-economic development: Scaling and diffusion of
BoP models......................................................................................................................65
Article 18 - Chilova & Ringov (2016) Scaling impact: Template development and Replication at
the Base of the Pyramid.............................................................................................................65
Article 19 - Wieringa (2019) Uncovering the scaling of innovations developed by grassroots
entrepreneurs in low-income settings........................................................................................70
Article 20 - Kistruck et al., (2011) Microfranchising in Base-of-the-Pyramids Markets:
Institutional Challenges and Adaptations to the Franchise Model..............................................72
Lecture 11: Firm-level capabilities of emerging multinationals.........................................74
Article 21 - Lessard (2014): The evolution of EMNCs and EMNC thinking: a capabilities
perspective.................................................................................................................................74
Article 22 - Dieleman & Widjaja (2019): How powerful political ties appropriate resources and
how weaker organizations protect themselves..........................................................................78
Article 23- Carney et al., (2016): How are institutional capabilities transferred across borders? 79
Emerging markets
Learning Objectives Emerging Markets
Compare theoretical perspectives on institutional voids characterizing emerging
markets (
Analyze role of MNE and SME firm-level capabilities and institutional influences on
innovation in emerging and developing markets
2
, Asses extent to which institutional void-filling strategies can be used by MNEs, SMEs
and NGOs to innovate
Create a business plan
Lecture 1
Following an overview of the course aims and expectations, this lecture will provide an
understanding of what emerging markets are, and the structural features that distinguish
them from developed economies. In the second half of the lecture, you will be briefed on
the project company and what is expected from the IEM assignment by the co-founder &
Chief Operating Officer (COO) of YYTZ, a cashew processing company in Tanzania
Project company: YYTZ (cashes processing company)
Also producing cashew butter! (sales opportunity)
Issues to be addressed:
1. Target group: sales potential for YYTZ’s product
2. Competitive risk: number and size of competitors
3. Distribution and marketing channels
4. Institutional differences (product markets and associated regulations)
5. Social and economic impact of YYTZ’s export activity for Tanzania
Comparing countries
Market risk:
how much competition there is.
How to measure it? Number of direct competitors
market share
business opportunities.
3
, How to measure it? How many people are willing to buy it, and can they do it? Asses
also income level
marketing and sales channel. (retail shelves, hotels). Market research.
It is a premium product, not organic!
What are emerging markets?
Stagnation in the developed world -> looking for growth in an emerging market
Risky: regulation weak, corrupt, distributions are not that transparent
Benefit: source of cheap labor
Criteria for defining emerging markets (IFC, 1981):
Important to note that it has a high economic growth
To what extent does this criteria hold for judging a country to be an emerging
markets?
It holds in comparison with developed countries. Emerging market is in the
middle between developed and disfunctional country.
Emerging markets are characterized by institutional voids:
institutional voids (gaps in the institutional framework)
A fundamental distinguish characteristic where transaction costs are higher
Def: the absence or underdevelopment of specialized intermediaries such as database
vendors, and quality certification firms, regulatory corporations, and control enforcing
mechanisms (Khanna and Palepu, 2006)
imperfect markets in simple terms
High transaction costs in emerging markets
high start up procedures to register a business
much time required to build a warehouse
much time required to enforce a contract
much time required to register property
much time required to start a business
Do institutional voids need to be bad?
Not always bad, you can see it as an opportunity for innovations,
entrepreneurship, market development.
4
