The purpose of this thesis is to explore how emerging market firms enter more advanced markets. The aim is to identify the main challenges that the firms experience and discover how the companies operate to manage these challenges. In order to reach our purpose the thesis has implied a qualitative method as well as a multiple-case study and the empirical data of the thesis have conducted semi- structured interviews.   The literature review is divided into two main parts, whereas the first part is Entry modes which include the following theories: Choice of Entry mode, Barriers to internationalization, the Uppsala Internationalization Model and the Network Model. The second part is cultural differences and consists of the following theories: Levels of culture, Hofstede’s cultural dimensions and Trompenaars cross cultural studies.   In the analysis we have connected our empirical findings with the theories mentioned above. The analysis consists of a discussion between the literature review and the empirical data in order to research their consistent and to find a common pattern. The conclusion reveals that emerging market firms enter more advanced market differently depending on factors such as the purpose with the entry and previous contacts in the advanced market. The main challenges are connected to the cultural aspects, which are managed differently by the companies.

The extant literature had studied the determinants of the firms’ location decisions with help of host country characteristics and distances between home and host countries. Firm resources and its internationalization strategies had found limited attention in this literature. To address this gap, the research question in this dissertation was whether and how firms’ resources and internationalization strategies impacted the international location decisions of emerging market firms. To explore the research question, data were hand-collected from Indian software firms on their location decisions taken between April 2000 and March 2009. To analyze the multi-level longitudinal dataset, hierarchical linear modeling was used. The results showed that the internationalization strategies, namely market-seeking or labor-seeking had direct impact on firms’ location decision. This direct relationship was moderated by firm resource which, in case of Indian software firms, was the appraisal at CMMI level-5. Indian software firms located in developed countries with a market-seeking strategy and in emerging markets with a labor-seeking strategy. However, software firms with resource such as CMMI level-5 appraisal, when in a labor-seeking mode, were more likely to locate in a developed country over emerging market than firms without the appraisal. Software firms with CMMI level-5 appraisal, when in market-seeking mode, were more likely to locate in a developed country over an emerging market than firms without the appraisal. It was concluded that the internationalization strategies and resources of companies predicted their location choices, over and above the variables studied in the theoretical field of location determinants.

Emerging market firms (EMFs) have become a significant contemporary global economic force in terms of their international presence and influence. However, given the extreme poverty and lack of development in their home countries, many Francophone firms in Africa seeking to internationalize lack resources as well as legitimacy in international markets. Compared to higher income emerging markets, Francophone firms in Africa face significantly greater challenges in their internationalization efforts. For such firms, initial internationalization may occur through the former colonial center as a result of “l’effet métropolitain” (or the metropolitan effect). They may take advantage of their French relationship to overcome the disadvantages of being located in underdeveloped countries and markets. Once established in France, they are able to internationalize more broadly. The aim of this research was to investigate “l’effet métropolitain” and learn about the factors influencing the internationalization process of Francophone firms in Africa. To meet these aims, data on internationalization processes of firms from Francophone Africa were collected through case study analysis and semi-structured interviews with senior management of seven, Francophone firms from Africa. The case study findings largely provide confirmation of a proposed model of “l’effet métropolitain” wherein certain firm resources and motivations moderate the internationalization of Francophone firms in Africa to France first and then beyond. / Business Administration/International Business Administration