Non-market strategies in emerging markets

Yusaf H. Akbar

Chapter 5 in A Research Agenda for Emerging Markets, 2026, pp 64-74 from Edward Elgar Publishing

Abstract: Non-market strategies are deliberate actions to shape political, regulatory, and social conditions and are directly vital for firms operating in emerging markets. In these contexts, institutional voids, such as weak regulatory systems and opaque norms, heighten uncertainty and transaction costs, making traditional market strategies necessary but not sufficient for competitive success. DMNCs therefore attempt to integrate non-market tactics like lobbying, government relations, and CSR to build legitimacy with competitive moves to secure favorable treatment from governments and fill institutional gaps in society. Host country firms leverage deep contextual knowledge and networks, while DMNCs compete through proactive stakeholder engagement. In aligning market and non-market strategies, companies mitigate political risk, exploit unique local opportunities, and transform institutional weaknesses into competitive assets. In emerging markets, non-market strategy is therefore not optional but essential for sustained success and innovation.

Keywords: CSR; ESG; Lobbying; Legitimacy; Governance; Stakeholder Theory; Risk Management (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035331574
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