THE 2x2 MODEL : Internationalization Motivations of Emerging Market Multinationals Projected from the Angle of Technological Industry

Abstract: Multinational corporations (MNCs) raised from emerging markets (EM) have drawn enormous attention to the world in recent decades. These internationalization activities have not only signaled characterized features of globalization, but also foreseen the future of strengthened “latecomer” global position emerged from developing countries. However, current studies have shown sufficient lack on research towards motivation behind EM MNCs’ internationalization. Many current theories and models were followed by patterns applied within those more developed countries. Nevertheless, EM MNCs appeared to hold different motivations approaching to internationalization. Thus, this paper documents a series of reasons that triggered EM MNCs to internationalize. In particular, studies carried out from this paper have concluded into a 2x2 Model, which characterized that the EM MNCs’ internationalization motives are incorporated from two perspectives (institutional based and resource based) into two approaches (asset seeking and opportunity seeking). Four case studies of multinationals in technological industry from two emerging markets are included in this paper, in order to attest validity of the 2x2 Model; these multinationals are Lenovo (China), Haier (China), Arçelik (Turkey), and Vestel (Turkey). We believe that technological industry is one of the most significant industries from emerging markets that is intensively involved in international activities; the selected firms have shown devoted global strategies and created certain size of impact in the global market, which is genuinely representative towards our studies.