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1. Citation

Rudolf R. Sinkovicsa, Khalid Nadvi, Yingying Zhang, RISING POWERS FROM

EMERGING MARKETS THE CHANGING FACE OF INTERNATIONAL BUSINESS.

International Business Review 23 (2014) 675–679 www.els evier.com/locate/ibusrev

Rudolf R. Sinkovicsa, a Centre for Comparative & International Business Research (CIBER),

The University of Manchester, Manchester Business School, Boot Street West, Manchester M15

6PB, UK b Lappeenranta University of Technology, Finland

Khalid Nadvi, School of Environment, Education and Development, The University of

Manchester, Oxford Road, Manchester M13 9PL, UK

Yingying Zhang, Colegio Universidario de Estudio Financieros, Madrid, Spain

2. Summery

The article provides an insight on the issue of contemporary IB situation that known as “Rising

powers from emerging markets” this are countries like china, India, and Brazil specifically

attempts to explore the phenomenon of ‘rising’, what we actually mean by ‘rising powers’ and

provides an overview of IB contributions to emerging country multinationals. In order to

understand this phenomenon, the article study and examine related but different in prospect articles

to give conclusion.

The issue raise by the study is very much significant because of current change in overall set up

of IB environment. This immerging powers are becoming major player and contributors to global

IB and other strategic changes in terms of investment, bilateral interaction and other economic and

political issue of the globe. So studying this help to understand:

• Their contribution to IB

• How to harvest this emerging power contribution for own country

• How to accelerate economic growth and catchup with countries in near future

• Their success factors and filler for lesson learned

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3. Study Purpose

The research question is clearly stated in the introduction part of the article “attempts to explore

the phenomenon of ‘rising’, what we actually mean by ‘rising powers’ and provides an overview

of IB contributions to emerging country multinationals.” By stating this the article try to ask and

answer this question: “whether emerging country multinationals are actually ‘rising powers’ and

pose the question whether they are indeed challenging the ‘rules of the game’ or (challenge existing

paradigms regarding firm competitiveness and performance)”

4. literature review evaluation

The use of recent literature review in the study was relatively most resent unlike the criteria of our

evaluation the article use literatures between 1 to 8 years and try to use old one as needed.

In the attempt to explore and answer the rising powers and their challenge to the rules of the game

in IB the article uses different references and empirical evidence that stated by recent study’s that

make a strong point in supporting his research question significance.

The literature review is directly related and contemporary issue in IB.

5. Methodology

Conceptual Framework

The conceptual framework of the study starts from understanding of the concept of the term rising

power from emerging economy. It clarifies and define the term rising power that is what is rising

emerging economy (which is strictly economic sense) while power in emerging economy (‘‘These

powers have significant populations, make increasingly important contributions to the global

economy and have a potential for greater security capability. Their emergence challenges the
preexisting

dominance of the OECD countries and will lead to a change in competitive conditions,

global governance and international relations.’’)

It also sees the contribution of IB for rise in power of emerging economy

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Sample

The samples in the study are three major emerging economies of the world who are not only

economically growing but also becoming world super powers that influence IB of the globe. Their

inclusion criteria are global rising power emerging economies which are differed from other rising

emerging economies like Mexico, Indonesia, and Turkey.

6. Result

The result show that however this rising powers are competitive in the IB lack of globally

recognized brand and lack of investment on branding affect them. This is because of lack of

originality which make them copycats in the IB.

Currently they are have developed the capabilities that ‘match the requirement of the new global

environment’ that make them the rising power of IB. this is backed by development of property

right in china and rise of domestic market innovations in India are examples.

The growing size of the low and middle income segment in the emerging economies is proving a

significant counterweight to the ‘rules of the game’, i.e. strategies that invariably aim for the ‘top’.

7. Discussion and suggestion for future research

The article implies:

First: EMNEs may face challenges in terms of technological endowment, they still have relatively

more positive socio-economic impacts than their AMNEs, even in advanced country contexts such

as Italy and Germany. Hence, their study poses questions regarding the influence of the

technological superiority of MNEs as a key factor shaping the formation of innovative ties at the

local level.

Second: suggests that business model innovation is a key capability that is particularly salient for

emerging country firms.

Third: large Asian manufacturers are taking on roles a coleader in global value chains in the

Apparel industry. They are strategic players in coordinating and exploiting geographically

dispersed production linkages.

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8.Synthesis with class material

1 from international market segmentation

Segmenting international markets on the bases of the aforementioned factors assumes that

segments should consist of clusters of countries. However, many companies use a different

approach called inter-market segmentation. Using this approach, they form segments of consumers

who have similar needs and buying behavior even though they are located in different countries.

The predetermined country characteristics of cultural, economic, geographic, technological, etc.

are inadequate for segmentation when considered without behavioral bases like buyers’

responsiveness to the global marketing program.

World markets can also be segmented on the basis of economic factors. For example, countries

might be grouped by their level of economic development and by population income levels. A

country’s economic structure shapes its population’s product needs and therefore, the marketing

opportunities it offers.

In domestic markets, customer characteristics such as age, sex, social class, personality, brand

loyalty, product usage and attitudes toward the given brand are often used as bases for

segmentation.

2. international target market in concentration of market

Market concentration is used when smaller firms account for large percentage of the total

market. It measures the extent of domination of sales by one or more firms in a particular market.

target market is the group of people you want to sell your product or service to. In ecommerce,

target markets are extensive. With over 220 countries to choose from, to find out which countries

have the target market that will be the most profitable.

Finding target markets for international eCommerce

If you haven't already done this for your domestic audience, start by defining target

demographic. Think about your target customer in terms of the following:

Age, Location, Gender, Income level, Education level, Marital or family status, Occupation, and
ethnic background of your customers

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