Introduction:Emerging markets players have become significant economic entities in the new world. But the knowledgeabout the processes through which they catch up with the existing multinational firms in their effort towardsinternationalization remains very limited. While vast research has been carried out from the perspective ofdeveloped economies, the issue of internationalization efforts by firms of these emerging economies hasbeen barely studied.This paper addresses the key issues pertaining to internationalization which include the characteristics ofinternationalization patterns, methods to classify their strategies while identifying the lessons learned fromfirms in developed economies.Objective of the review:1. To develop a better understanding of the characteristics and strategies adopted in theinternationalization efforts of firms in emerging markets2. To verify the robustness of the model by comparing results across various articlesPapers reviewedThe two broad headers that the paper explores are1. Categorization of Emerging Market companies going global2. Strategies adopted by these companiesResearch papers that shed light and delve deeper into either of these questions were looked for and thefollowing were the identified papersCategorization:? IIMA Publication “Internationalization of Firms from Emerging Economies: An OrganizationalLearning Framework” by Sunil Sharma? University of Warwick “The International Growth of Emerging Market Firms: Evidence from aNatural Experiment” by Banerjee, Sourindra , Prabhu, Jaideep C. and Chandy , Rajesh K? Emerald insight Publication: “The internationalization of emerging market business groups: anintegrated literature review” by Attila Yaprak and Bahattin KarademirStrategies:? HBR Article “Emerging Giants: Building World-Class Companies in Developing Countries” byTarun Khanna and Krishna G. Palepu? Copenhagen Business school “The Internationalization of Emerging Market Firms” by TamaraStucchiLiterature ReviewEmerging market firms are turning out to be significant players in the global scenario. With the muchappreciated growth, it is also appalling that very less is known about how the firms from emerging marketsare spreading out their wings in the global context. The purpose of the article is to understand the strategiesadopted by firms from emerging markets.A context specific study by Tamara Stucchi agrees with Huei-Ting Tsai by saying that the InternationalBusiness literature around the world has traditionally been dominated by western world specific theories.Characteristics of internationalization strategies pursued by firms from emerging marketsR&D Intensity and marketing intensity are the parameters employed to categorize firms of emergingmarkets. The firms have been divided into:1. Regional exporter/importera. They serve the needs of the customers in close by regions and restrict themselves todeveloping countries near and around.b. These markets are less expensive and less risky to enter due to low levels of competitionpresent among players in the market.2. Global exporter/importera. These firms focus on import and export across the globe.b. They mainly engage in activities of inbound and outbound logistics3. Multinational Challengera. Despite coming from emerging markets, these firms have the advantage of surplusresourcesb. Capitalizing on these values, they catch-up with global players4. OEM/ODM (Original Equipment/ Design Manufacturing)The “born-global” firms embark on a very rapid process of internationalization as theunique features that they possess help them in overcoming the liabilities of starting up in aforeign market.’The International Growth of Emerging Market Firms: Evidence from a Natural Experiment’ byBanerjee, Sourindra , Prabhu, Jaideep C. and Chandy , Rajesh develops a set of competencies that arerequired for a company from an emerging market to go global. This competency set, he names it as “GlobalMarket Capital”. It consists of Leadership Capital (individual level), Foreign Marketing & Financial Capital(firm level) and Network Capital (inter-firm level).Sunil Sharma in his paper on ‘Internationalization of firms from emerging economies’ argues that firmsfrom both developed countries and emerging economies require an integrated approach to pursueinternationalization. The four key dimensions identified were General Antecedents (modem direction,cultural distance), Firm characteristics (institutional factors of the host country), Global market structure(industry structure). A firm deciphers the relationship between its unique characteristics shaped by the first3 dimensions which when matched with its strategic intent determines the best path to pursue.Based on the study of internationalization efforts of emerging economy firms, Sunil Sharma identifiescertain key propositions. The first that acquisitions would be the preferred mode of internationalization ascompared to joint ventures, this can be generally expected from Multinational Challengers which possessfinancial and technological capability. Secondly, firms from emerging economies would try and acquire amajority stake in the target company to allow access to tacit knowledge. Finally, he argues that firms fromemerging economies would generally go for small size acquisitions given the limited resources they wouldgenerally possess as compared to developed counterparts.ClassificationThe heterogeneity of MNEs is a guiding force in their underlying motivation to go beyond home turf. Theclassification of such emerging multinationals can be done on grounds of both antecedents and acquisitionstrategies adopted to thrive.Both resource-based and institutional-based views uphold the fact that cross-border acquisitions aredichotomous in nature with the parent trading firm based expertise or resources (ex: finances) fortechnological or marketing capabilities lacking on home front. The transactions can be eitheraugmentative or exploitative basis company’s existing competencies.The antecedents establishing firm context are: Resource-based, which describes company standpoint ondifferent resources, degree of diversification and expertise; Institutional-based, characteristics like linkages(government/foreign) and ownership control extended to rebuff weaker home institutions and objectivesfor acquisition; and industry-based, which account for peculiarities associated with a particular businessdomain. Ultimately, based on the fitness of context and business premise, a company can realize its suitableinternationalization strategy. Which are also outlined by Attila Yaprak, Bahattin Karademir, in “Theinternationalization of emerging market business groups: an integrated literature review”.Multinationals can be classified into four groups, basis their entry strategies: Upstream strategy,exploitative strategy, augmentative strategy and downstream strategy.1) Companies rooted in EM with sufficient marketing capabilities look for augmenting the technologygap through upstream acquisition to serve in a familiar low-cost market with affordableproducts. These are typically risk averse family-owned business groups with diversified businessportfolio. Receptive to internalizing technical know-how, they operate mostly in technologydomain. Ex – Suzlon2) Exploitative strategy is adopted by companies with government linkages, financial backing,international workforce and focus on domestic markets. Being Market leaders, they have directlyacquired technical and marketing expertise from prior takeovers. Ex- Arcelor Mittal Steel3) The riskiest strategy is adopted by companies seeking both marketing and R capabilities underAugmenting strategy. These firms though family controlled have included professionals withinternational experience on board to further efficient expansion and control risk moving inadvanced markets. Ex-Sun Pharma4) Downstream strategy is implemented by firms rich in technology looking to enhance customercollaboration across the globe in AMs. Backed by foreign investors and linkages, they are run byinternational professionals to diversify locations and augment marketing skills accordingly. Ex:InfosysStrategies adopted for Internationalization:Each of the classified categories of companies follow different strategies which are summarized below:Multinational Challengers, who have strong brands and technological capabilities are similar to truly globalMultinationals. They choose to penetrate multiple markets at the same time and focus on building theirbrands.Global importer/exporter adopt the product with slight modifications to suit different export markets.Starting out in nearby markets and then expanding to distant ones.OEM/ODM players are specialized in certain value chain activities and they continue to invest in the same.These players are truly global in their model and target multiple countries simultaneously.Regional exporters who do not invest in product modification, choose to export their product in marketswhich are similar.HBR Article titled “Emerging Giants: Building World-Class Companies in Developing Countries”presents a different method of classification in which the author believes that institutional voids which area norm in emerging markets make companies from this market more adoptable and better suited. Underthese conditions, they develop in the home market and gain leadership position. And then they exploreglobal markets by competing in segments which doesn’t directly pit them against established developedplayers. The author classifies two key strategies which these companies adopt1. Gaining Product competencies – The local firms have better understanding of the localconditions and adopt faster than the global firms in serving them. With these products theyexpand to nearby markets which are similar. They however, are careful that they do notcompete directly with the global companies.2. Utilizing Resource competencies – Resource disparity is high between developed anddeveloping nations. This makes way for new firms in emerging markets to create value andarrive at more supply surplus for the consumers in the developed economies.ConclusionThe different theoretical perspectives elicited by papers reviewed helped characterize an emergingmultinational entity in terms of its resources, business motive and home country context. We furtherexplored the fitness of strategy adopted with the firm antecedents. Thus, we developed an overview of aMNE’s journey from rebuffing domestic conditions to geography selection for expansion, mode of entryand collaboration sought for surviving competition.