Who are these emerging markets anyway? A taxonomic approach integrating institutional and culturalist perspectives

Abstract

To date there has been little to no widespread, universally accepted and theoretically driven examination of what an emerging market is and how best to capture its principle characteristics. Major international organizations, institutions, and scholars, all classify these countries utilizing a multitude of different perspectives. Applying institutional theory as a framework yet bowing to the unique pervasiveness of culture research, this study develops a more nuanced reclassification of emerging markets. Utilizing cluster analysis and dendogram interpretation, the application of this multidimensional and multidisciplinary framework results in eight categories of emerging markets and shows how social, political, economic, and spatial can contribute to the emergent status of a country. This study also serves as a vehicle to show how both the institutional and culturalists perspectives on international business management and strategy can be combined. These theoretically grounded findings from the study provide new boundary conditions for national contexts to be applied in future international business research and further inform international management and strategy stakeholders of a means to reduce the clouds of uncertainty surrounding these countries.