A long way to the rainbow country (Pehmeäkantinen kirja)

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The foreign market expansion process has gained popularity among researchers. Yet, little is known about business expansion and operational strategies in new emerging markets. For instance, studies of how foreign corporations expand their businesses and how they cope with changing business environment on the African continent are still rare.

This research emphasises the environmental and political conditions affecting the actions of MNCs in new emerging markets. For this purpose, the study elaborates on key elements that make the REMNET model of foreign market expansion by showing how a collection of internal and external drivers as well as networking and critical events come together to form the basis for internationalization to emergent markets.

The empirical research was undertaken in two waves: during 2002/2003 in both Finland and South Africa and then again in 2004 in South Africa. Using an abductive research approach, an empirical qualitative data was collected from seven Finnish corporations and qualitative content analysis was used for data reduction and analysis.

The study found company characteristics, company hard resources, human resources, political resources, networking activities to play a decisive role in the expansion process. In addition, the study found evidences for a reduction in relationship distance between key actors over time in strive to co-create value.
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