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Core Resources and Capabilities of Emerging Multinationals from Emerging Economies

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The multinational enjoy innovative capabilities due to access to superior technology that leads to the production of high-tech products for the niche market. Accordingly, multinationals from developed economies have well-established research and development teams that continuously monitor consumer demand changes such as changes in consumption patterns, shifts in tastes and emerging technologies that enable them to develop new products (Peng, 2013). Multinationals from developed countries have high access to financial capital in the international capital markets due to their ability to provide security for bonds and loans (Peng, 2013).

Accordingly, multinationals from developed countries have a talented human resource base that includes cross-cultural teams thus facilitating entry into foreign markets and learning of the needs of cultural markets (Peng, 2013). In this case, the multinationals from developed countries are capable of establishing global partnerships in their wide network in order to facilitate new product development. A clear example is Hewlett-Packard and NCR that leveraged their business capabilities and transformed the production facilities to new technology innovation centers (Peng, 2013). Multinationals from developed countries have intellectual property rights such as registered trademarks, patents, copyrights and industrial design rights.

Accordingly, the companies enjoy access to customer databases and business systems and a cutting-edge in the knowledge-based economy due to the ability to protect their intellectual capital (Peng, 2013). The developed countries’ multinationals have global brand names and positive reputation due to the perceived high quality of their products. In this case, the companies enjoy higher customer satisfaction and loyalty than emerging multinationals. Dealing with some of the copycat strategies embraced by emerging multinationals that violate the intellectual property rights of their rivals in developed economies.

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