Theoretical Approach to Define Emerging Markets and Emerging Market Global Companies: Double Triangle Model *

Many institutions and researchers in international economics and business have studied the characteristics, trends, and sources of the competitive advantages of emerging markets (EMs) and/or emerging markets global companies (EMGCs) compared to those of other markets and companies because of the growing importance of EMs and EMGCs in the world economy. However, there are no clear-cut definitions of EMs and EMGCs. Therefore, this study is trying to develop a theoretical model called as ‘Double Triangle Model’ to define EMs and EMGCs who have sustainable competitive advantages. Based on the Double Triangle Model, this study defines EMs as countries whose competitive advantages measured by the shares of GDP, exports, and outward foreign direct investment in the world are higher than the average competitiveness advantages of all countries except developed countries. Also, EMGCs are defined as companies whose competitive advantages measured by trans-national, growth, and profitability indices are higher than the average competitiveness advantages of all companies from EMs.