Background: Academic interest in emerging markets and their growth has been relevant due to their promised potential for foreign multinational companies. Internationalization is a fundamental differentiator for MNCs aiming to expand and grow in novel markets. The existing unequalness prevailing in emerging markets necessitates strategy adaptation to overcome the existing heterogeneity. 

Research Problem: Despite the increasing relevance of emerging markets, research on both institutional environment and foreignness in structurally unequal markets is underdeveloped. Combining institutional theory with internationalization activities presented itself as a research area, with the focus on structurally unequal emerging markets being identified as a research gap.

Research Purpose: The purpose of this research is to identify the interconnectedness between institutions and foreignness under the theoretical lens of institutional theory. It aims to showcase the relevance of strategy adaptation and market awareness for continued success within the context of South Africa.  

Research Question: How do internationalization activities affect the survival of foreign MNCs in structurally unequal emerging markets?

Research Method:  The study follows qualitative, inductive research – based on a relativist ontology and social constructionist epistemology. Research is approached with an explorative multiple-case study, with data being purposefully collected through semi-structured interviews and company reports. Data was analyzed with the Gioia method.

Conclusion: Our findings concentrate on the existence of institutional voids, with distance being an important factor. Foreignness is found to be an advantage for foreign MNCs, with isomorphic behavior to be absent. From this we abstract a framework which showcases the distance and foreignness under the driving factor of internationalization.