The paper aims to analyze applicability of the 3‘I’s concept (internationalization, innovations, and institutes) to explain development of emerging market companies’ competitive advantages; in particular, it explores how company’s international and innovation activities and embeddedness in networks of relations with institutional agents affect its performance. Analyzing Chinese companies internationalization processes, their innovative activities and specifics of Chinese institutional environment (formal and informal institutions), the study confirms the importance of effective interaction between these three aspects and their driving force for companies’ competitiveness
Keywords: 3I concept, innovation, institution, internationalization, China
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