Session 106

Multilatina FDI Strategies

Track A

Date: Friday, March 11, 2011

 

Time: 14:15 – 15:30

Paper

Room: Room 1-012


Session Chair:

  • Jorge Carneiro, Pontifical Catholic University of Rio de Janeiro

Title: Economic and Institutional Determinants of Outward Foreign Direct Investment: A Comparative Study Between Brazil, Portugal and Spain

Authors

  • Mohamed Amal, Regional University of Blumenau
  • Henrique Raboch, Universidade Regional de Blumenau
  • Bruno Thiago Tomio, Belin Business School of Economics and Law

Abstract: The aim of the paper is to discuss the determinants factors of FDI from Brazil and to compare them to the case of Spain and Portugal, addressing more specifically how economic, institutional and cultural factors in the host countries affect the strategy pattern of Multinational Companies. Based on a panel data model, we estimated an equation for the FDI over the period 1996-2008 and with all the host countries of FDI from our sample. The empirical results support the hypothesis that FDI from Brazil is more regional oriented, positively correlated to the trade and institutional factors, and suggesting a more mix strategy between market and efficiency-seeking strategy. Such evidences could be founded also in the case of Portuguese and Spanish FDI.

Title: Firm Entry and the Diffusion of DIY

Authors

  • Ariel Casarin, Adolfo Ibañez University
  • Maria Eugenia Delfino, Austral University

Abstract: This paper examines the diffusion of a DIY chain store firm – called EASY– in Argentina. Its objective is to explore the factors that determine entry and subsequent growth across regions within a country. To that aim it uses survival analysis techniques to examine the factors that explain the duration of time before which the firm opens a store in a particular market. The results indicate that the hazard of entry is positively influenced by population size and the number of rudimentary dwellings while negatively related to the distance from the firm’s headquarters and the level of income. The findings suggest that there remain potential attractive markets for first entry strategies.

Title: Multinationality and Performance in Latin American firms: Assessing the Impact of Group Membership and Diversification

Authors

  • Armando Borda, Florida International University
  • William Newburry, Florida International University

Abstract: Despite the growing importance of multinationals from emerging countries, relatively few studies have been conducted. This paper explores the relation between multinationality and performance in the context of Latin American and the moderating role of group membership on such a relation. Business group affiliation is prevalent emerging markets. However, its impact has not been addressed in the M-P literature. We argued that there are two opposite effects of business group affiliation that may play a role when firms internationalized: benefits of diversification associated with filling institutional voids and benefits of affiliation associated to the ease of information and learning from experience. While the former tend to be location bound, the latter ones are non location bound and therefore, those benefits affect differently the M-P relation.

Title: Strategies of Mexican Firms in Global Competition

Authors

  • Robert Grosse, Monterrey Tec

Abstract: A challenge for firms in emerging markets is to expand into markets beyond the one where they typically begin, either the globally-integrated modern sector or the backward, poor and often informal sector. The principal advantages that arise from this experience have to do with managing uncertainty, operating across cultures, dealing with external pressure groups such as governments, and being capable of serving needs in the low-income sector, typically with inexpensive products or services. These are quite different strengths in comparison with US or EU-based large firms, that tend to obtain competitive advantages from capabilities such as proprietary technology, marketing skills, and large-client relationships. A sample of the firms listed on Mexico's Stock Exchange (BMV) is used to demonstrate these advantages in international competition.

All Sessions in Track A...

Fri: 11:30 – 12:45
Session 103: CSR and Environmental Issues in Emerging Markets
Session 111: Performance Issues
Session 114: Internationalization Strategies
Session 117: Learning in Emerging Markets
Session 120: The Characteristics and Effects of the BRIC Economies as Hubs for Regional Economic Development
Fri: 14:15 – 15:30
Session 102: Resources in Emerging Markets
Session 106: Multilatina FDI Strategies
Session 110: Global Competition
Session 112: CSR and Environmental Issues
Session 124: Research Methods for the Study of Competitive Advantage
Fri: 15:30 – 16:45
Session 101: Institutions in Emerging Markets
Session 104: Alliances and Networks
Session 105: Knowledge and Innovation
Session 108: Knowledge and Resources
Session 115: Developing Country Firms
Sat: 10:45 – 12:00
Session 107: Multilatina Performance
Session 113: CEOs and Other Human Resources
Session 123: Banks and their Influence
Session 125: Reviewing Latin America’s Strategic Role in Global Development
Session 126: Publishing and Not Perishing: Strategies for Publishing in Top Journals
Sat: 15:45 – 17:00
Session 100: Entrepreneurship in Emerging Markets
Session 109: Social Issues and Local Development
Session 116: Emerging Market Institutional Reform
Session 118: Management Innovation in Emerging Markets
Session 127: Teaching in Latin America


Strategic Management Society

Rio De Janeiro