Asia Pacific Journal of Management

, Volume 25, Issue 2, pp 251–275

The turtle–hare race story revisited: Social capital and resource accumulation for firms from emerging economies


  • Lei Li
    • Pamplin School of Business AdministrationThe University of Portland
    • School of ManagementUniversity of Texas at Dallas
  • Bindu Arya
    • College of Business AdministrationUniversity of Missouri-St. Louis

DOI: 10.1007/s10490-007-9068-x

Cite this article as:
Li, L., Lin, Z.(. & Arya, B. Asia Pacific J Manage (2008) 25: 251. doi:10.1007/s10490-007-9068-x


How can firms from emerging economies, given their internal resource constraints, compete effectively with established multinational enterprises (MNEs) in home markets and gain capabilities for international expansion? We develop an integrative view of resources by incorporating network-based social capital theories and articulate that the depth and nature of emerging economy firms’ external social capital determine the direction and magnitude of resource exchanges with their business partners, and thus their effectiveness in accumulating critical internal resources. Throughout the development of our theoretical framework, we have also relied on empirical evidences from various business sources, including the cases on Lenovo and Shanghai Automotive Industry Corporation (SAIC). We conclude with scholarly and practical implications and future research avenues.


Emerging economiesSocial capitalRelational embeddednessStructural embeddednessResource accumulation

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© Springer Science+Business Media, LLC 2007