A conceptual framework for developing-country transnationals: PROTON Malaysia

In this article, we offer guidance for the potential advance of developing-country transnational corporations (TNCs), often referred to as third-world multinational corporations. After reviewing the topical literature and establishing the soundness of the case approach for model construction, we examine the case of Perusahaan Otomobil Nasional Berhad (PROTON), the Malaysian National Car project. We find insights emanating from the experiences of this firm that are applicable to other developing transnationals, particularly those involved in complex manufacturing. Based upon the theoretical foundation of the literature, in conjunction with the real-world successes, challenges, and failures of PROTON, we offer a conceptual framework for effective developing-country TNC emergence and, more important, eventual global competitiveness.