What are emerging markets? Unpacking emergence: a critical perspective on emerging markets in international business

Purpose This paper aims to critically interrogate the category of “emerging markets” in international business scholarship. Although widely used in research, policy and investment discourse, the term remains inconsistently defined and frequently reduced to a narrow set of economic indicators. The purpose here is to provide conceptual clarity by situating emerging markets not only within economic accounts of growth and opportunity but also within their historical, political, institutional and social contexts. Design/methodology/approach This study is conceptual in nature and adopts a historically grounded and interdisciplinary approach, drawing on political economy, development studies, sociology and international business. It follows a thematic structure based on the trajectory of “emergence”: examining why emerging markets did not develop earlier, why they have gained prominence now, what their defining characteristics are and why they must be understood as more than economic phenomena. The analysis builds on theoretical insights from new growth economics, institutional theory and critical perspectives on historical globalization. Findings The analysis shows that the inconsistent use of the term “emerging markets” stems from its origins as an investment label rather than a scholarly concept, which has contributed to definitional ambiguity. It highlights how historical legacies of colonialism, dependency and global inequality constrained emergence (together with poor policy and governance choices) until recent decades, when new conditions such as globalization, demographic shifts, policy reforms and technological change enabled distinct growth trajectories. Emerging markets today are marked by volatility, hybridity and inequality across economic, institutional, political and social dimensions. At the same time, they represent more than economic categories: they are political, cultural and ideological formations whose rise is reshaping global governance and the dynamics of international business. Originality/value It contributes to international business scholarship by conceptualizing emerging markets as multidimensional and contested social formations. It critiques purely economic and investor-oriented framing that dominates the literature and calls for greater engagement with power, inequality and historical legacies. In doing so, it advances a critical perspective that situates emerging markets at the intersection of global capitalism, statecraft and social transformation.