Institutional Voids: Black Hole or Opportunities?

• Main Author: Singapore Management University
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Intitutional voids; emerging markets; success; strategies; Business; Business Administration, Management, and Operations; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/pers/21; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1019&context=pers

Emerging markets and their institutional voids offer great growth potential for corporates and organisations seeking an exit strategy from the gloomy European market, says Harvard professor Tarun Khanna. ‘Institutional voids’, a phrase coined by Khanna in his book "Winning in Emerging Markets, refers to the absence of intermediaries like market research firms and credit card systems to efficiently connect buyers and sellers. This creates daunting obstacles for companies trying to operate in emerging markets. According to Khanna, understanding these voids – and learning how to work with them in specific markets – is the key to success