Countless companies from emerging economies hesitate to jump into international markets—especially those in the developed world—because they see themselves as hopelessly flawed. While many are every bit as savvy and profit-oriented as traditional multinationals, they’re painfully aware that they don’t have cutting-edge technologies, dominant brands, or novel products. And the process of building those kinds of advantages looks long and daunting, even for companies that possess the necessary capital. So they remain at home, profitable but unable to live up to their full potential—and vulnerable to foreign competitors.
A version of this article appeared in the November 2010 issue of Harvard Business Review.
