1) LLL Model The linkage, leverage, learning (LLL) model wasoriginated due to the critics of the OLI framework as it advocates the assetexploration motive that is a springboard perspective (Matthews, 2002). Matthew (2006) developed thismodel to provide pivotal understanding to the accelerated internationalizationdecisions of EMNEs through resource-based analysis. The first aspect is linkage, which understandshow companies decide to leverage into new markets. EMNEs are viewed aslatecomers hence linkage is a mechanism that provides them with ready access tointernally lacked resources such as advanced technology or brand reputationthrough collaborative partnership with foreign firms (Luo and Tung, 2007).Risk due to uncertainty in the market is reduced often through partnership thusit 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 theseresources and cost advantages to overcome barriers in order to remaininternationally competitive (Matthews, 2002). Lastly,learning is a stage established when EMNEs acquire competitive advantages anddynamic capabilities through linkage and leverage strategies and attainknowledge on how to compete on international level (Matthews, 2006). He and Fallon (2013) illustrates theimplementation of LLL model analysis on Tata Motors whereby through theacquisition of Jaguar Land Rover, they were able to enhance both their brandreputation and technological skills.
Furthermore, they were able to leveragetheir knowledge to evolve into global players (He and Fallon, 2013). Therefore,the LLL model is able to furnish strategic intents of EMNEs as well asproviding account for the rapid rise of EMNEs (Matthews, 2006). Hence, the theory reckoned thatany EMNEs, which lack strategic resources, have the possibility to internationalizedin an accelerated manner through integration of the LLL model (Matthews, 2002).