Journal of Business and Management Volume 4, Issue 3 (2015), 01-15 ISSN 2291-1995 E-ISSN 2291-2002 Published by Science and Education Centre of North America ~ 1 ~ Reverse Innovation Networks: Connecting Emerging Economies to the Developed World Deborah de Lange 1* 1 Global Management Studies, Ted Rogers School of Management, Ryerson University, Canada *Correspondence: Deborah de Lange, Global Management Studies, Ted Rogers School of Management, Ryerson University, Toronto, Ontatio, M5G 2C5, Canada. Tel.: 416-979-5000 x 7504; Email: debbie.delange@ryerson.ca DOI: 10.12735/jbm.v4i3p01 URL: http://dx.doi.org/10.12735/jbm.v4i3p01 Abstract Reverse innovation (RI) is a relatively recent and understudied phenomenon. It is a product development strategy where an innovation is designed and adopted first in emerging economies before transferring to the West. Research has not comprehensively explained what induces RI. Since RI results in international network building, this research engages network theory to shed light on the network mechanisms likely to position new emerging market SMEs for RI. Illustrations from the sustainable transportation sector provide some applicable clarifying context. Cities around the world are similarly growing rapidly such that firms’ transportation technologies can be interchanged across them, but the technologies may also require some local customization. Overall, the theoretical development suggests that: 1) network centrality in terms of prominence, 2) connectedness to powerful others as defined by eigenvector centrality, and 3) brokerage in accordance with betweenness centrality could be indicative of potential RI in local and international value system networks. This research adds to the literature on the dynamics of globalization. JEL Classifications: F13, F21, F43, O10, O19, O33 Keywords: international networks, emerging economies, economic development, innovation, globalization, entrepreneurship, sustainable transportation 1. Introduction Reverse innovation (RI) is a new product development strategy where an innovation is designed and adopted first (and modified) in emerging economies before transferring it to the West. For example, India’s Mahindra constructs automotive vehicles with intentions to make them green (environmentally friendly) and to stand out as a unique global brand. They have sold vehicles around the world including Australia and Europe. An alternative view of RI is that it is initiated by large North corporations partnering with small South firms, reinventing products in the South that were originally from the North, and bringing them back to their industrialized home countries (Govindarajan & Ramamurti, 2011). However, this research is focused on the underexplored view of RI first introduced and the local networks in the South economies that generate it from within. In what types of positions in local networks are firms such that they will tend to engage in RI? This research theoretically studies this question with illustrations from the sustainable transportation sector.