Knowledge and innovation in emerging market multinationals: The expansion paradox

This article examines the innovation and knowledge strategies that allow emerging-market companies to become major international players. By adopting a qualitative approach, this study identifies a significant paradox between the desire of some leading Chinese car companies to expand internationally and the current relationship of such companies with leading global car companies, which significantly inhibits Chinese international expansion. This study unpacks that paradox using innovation theory and the resource-based view, and develops a matrix of strategic options that can assist emerging market multinational companies to expand internationally.