4 - Strategic Capabilities of Emerging Indian Multinational Enterprises

Summary

This chapter seeks to investigate the nature of strategic capabilities required for Indian firms to successfully transcend domestic markets and venture abroad. The study is based on intensive case studies of four Indian firms in the manufacturing and services sectors. The findings indicates that the capabilities considered most important by the firm leaders for the internationalization of their activities were ability to develop resources internally, entrepreneurship, and ability to adjust to poor infrastructure need. Three interesting patterns also emerged in the way firms choose to expand their operations to other markets: capability complementing, capability augmenting, and new capability development. Overall, the study indicates that the competencies required to succeed are also significantly influenced by the industry type and prior history of internationalization by associated companies. To gain a better understanding of these issues it would be necessary to moderate for industry, size, and ownership effects.