Xiaomi corporation's expansion motives into the Indonesian smartphone market (2014–2019)
DOI:
https://doi.org/10.35335/ijafibs.v14i1.486Keywords:
Asset-Seeking, Indonesia, Opportunity-Seeking, Springboard Perspective, XiaomiAbstract
This study aims to explain Xiaomi Corporation’s expansion motives into the Indonesian smartphone market during 2014–2019 using the Springboard Perspective framework. The research problem arises from the increasing role of emerging market multinationals (EM MNEs) that expand into emerging markets to strengthen their global position. This study employs a qualitative descriptive method with a literature review approach. Data were collected from market research reports, government regulations, official company releases, and media publications. The data were analyzed using content analysis to identify findings based on asset-seeking and opportunity-seeking categories. The results reveal that Xiaomi’s expansion reflects a combination of asset-seeking and opportunity-seeking motives implemented simultaneously. On the asset-seeking side, Xiaomi established local assembly facilities and partnered with Erajaya for distribution networks and after-sales services, thereby overcoming latecomer disadvantages and reducing operational costs. On the opportunity-seeking side, Xiaomi leveraged Indonesia’s large, price-sensitive market, bypassed regulatory barriers through local investment, and exploited global scale advantages to offer competitive pricing. These findings confirm the proposition of the Springboard Perspective that EM MNEs use international expansion as a means to overcome home-country capability gaps while consolidating their global positions.
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