The second part of the interview with INSEAD Professor Amitava Chattopadhyay, on the management approach and latest trends of EMNCs defying the common wisdom.
This time the discussion explores what is missing in Japanese companies.

EMNCs are starting to globalize seriously. Their management strategies differ from the those of firms from developed countries. How should Japanese firms think about EMNCs? This time, we bring the latest info on EMNCs from Professor Amitava Chattopadhyay of INSEAD.

“Chinese battery and car maker BYD changed the game with process improvements that enabled agility in a rapidly growing environment, but new capabilities are needed to take it further.”

If you’ve been to Los Angeles lately, you may have come across an electric car whizzing by. California seems to have become the default location of environmentally friendly automobiles. Later this year you may also spot an electric bus trundling around the city. What might surprise you even more than that sight is that it will most likely be a bus manufactured by BYD of China.

The case describes the history of BYD and its entry in to batteries and then automotives, and the innovations that drove the competitive advantage of the business. BYD entered the automotive industry hoping to leverage its capabilities in batteries. However, it is struggling and in a downward spiral. What should it do?

“All companies from emerging markets face trust problems in developed markets initially when they expand. overseas,” says the professor. For instance, Japanese companies faced challenges in the US in the 1960s and 1970s before the likes of Toyota, Honda, Sony and Canon started to get respect in the 1990s. Koreans faced a similar rough ride in the 1990s and 2000s.

When Hyundai launched its cars in the US in the 1990s, it was the butt of jokes; today it’s a brand that’s respected for quality and styling. “It takes time. There is absolutely no reason for Indians to take the Edelman report and hyperventilate,”