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1)     LLL Model

 

The linkage, leverage, learning (LLL) model was
originated due to the critics of the OLI framework as it advocates the asset
exploration motive that is a springboard perspective (Matthews, 2002). Matthew (2006) developed this
model to provide pivotal understanding to the accelerated internationalization
decisions of EMNEs through resource-based analysis.

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The first aspect is linkage, which understands
how companies decide to leverage into new markets. EMNEs are viewed as
latecomers hence linkage is a mechanism that provides them with ready access to
internally lacked resources such as advanced technology or brand reputation
through collaborative partnership with foreign firms (Luo and Tung,
2007).

Risk due to uncertainty in the market is reduced often through partnership thus
it is a popular strategic decision that is utilized by Chinese EMNEs (Morck, Yeung and Zhao, 2008). The second feature,
leverage, concentrates on the exploitation of linkage by channeling these
resources and cost advantages to overcome barriers in order to remain
internationally competitive (Matthews, 2002). Lastly,
learning is a stage established when EMNEs acquire competitive advantages and
dynamic capabilities through linkage and leverage strategies and attain
knowledge on how to compete on international level (Matthews, 2006).

 

 

He and Fallon (2013) illustrates the
implementation of LLL model analysis on Tata Motors whereby through the
acquisition of Jaguar Land Rover, they were able to enhance both their brand
reputation and technological skills. Furthermore, they were able to leverage
their knowledge to evolve into global players (He and Fallon, 2013). Therefore,
the LLL model is able to furnish strategic intents of EMNEs as well as
providing account for the rapid rise of EMNEs (Matthews, 2006). Hence, the theory reckoned that
any EMNEs, which lack strategic resources, have the possibility to internationalized
in an accelerated manner through integration of the LLL model (Matthews, 2002). 

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