Session 114

Internationalization Strategies

Track A

Date: Friday, March 11, 2011


Time: 11:30 – 12:45

Common Ground

Room: Room 1-005


  • Alvaro Cuervo-Cazurra, Northeastern University

Title: Cultural and Institutional Distance Effects on R&D Performance on Firms with South American Affiliates


  • Ernst Verwaal, KU Leuven
  • Nadia Carvalho, Queens University
  • Herman Belgraver, Erasmus University Rotterdam

Abstract: The authors develop and empirically test a theoretical framework that explains the impact of cultural and institutional distance on the R&D performance of firms with affiliates in South America. The results show a significant negative moderation effect of cultural distance on the R&D performance. The effect of institutional distance is not significant. However, the negative moderation effect of cultural distance on R&D performance diminishes dramatically if the firm internalizes the affiliate. The findings suggest that the negative effects of cultural distance on R&D performance are less relevant for firms that internalizes the South American affiliate. These results contribute to the internalization perspective on R&D performance in international business.

Title: On Tangible and Intangible Assets: TAM Airlines and its Evolving Strategy


  • Humberto Bettini, Unicamp

Abstract: For about twenty years TAM Airlines has been moving off from regional aviation markets: from a typical regional carrier in the early 1990s, TAM transformed itself into a legacy, international airline by the end of the 2000s. However, December 2009 testified a possible partial reversal in such strategy: with the purchase of Pantanal Airlines, TAM signalized that a re-entry into regional markets with a fully-owned brand could be under course. If this is the case, how to explain the reasons for such dynamics, namely, the progressive exit from regional markets for twenty years, and now a re-entry? This communication draws some considerations on this theme, focusing on specificities that may be related to both regulatory issues and the dynamics of economic growth in Brazil.

Title: Organizational Strategies and Connection to Global Value Chains: Information Technology Firms Multiple Case Study


  • Eduardo Armando, University of São Paulo
  • Adalberto Fischmann, University of San Paulo

Abstract: The focus of the research is the business strategy of firms connected to Global Value Chains (GVCs). The theme is studied through the multiple case study method. The sample is composed of eight Brazilian origin Information Technology firms, all of them with activities abroad. The market segments the studied organizations operate are characterized, as well as its strategy and behavior regarding innovation, mainly the organizational one. Primary data was collected through personal interviews. Results indicate and compare strategies and practices regarding product development, outsourcing, and relationship with suppliers, distribution channels and international buyers. The strategies and international activities of the studied cases are compared.

Title: The Impact of Local Responsiveness In The Structure of the Global Supply Chain of A Petrochemical Subsidary


  • Daniela Moser, Faculdade Boa Viagem
  • Marcos Primo, Universidade Federal De Pernambuco

Abstract: This article deals with how the local responsiveness in the international operation strategy as defined by the main company affect the structure of global supply chain of a petrochemical subsidiary located in the State of Pernambuco, northeast of Brazil. The global commodity supply chains emphasize the need to look not only the extent of geographical dispersion of production arrangements, but also for their organizational scope. The research is qualitative and exploratory. Data collection was based on semi-structured interviews and documentary research. The main results indicate that the way the main company define its policy of local responsiveness, involves in different ways to structure the global supply chain of a petrochemical subsidiary.

Title: The Internationalization of a Winery Cluster in Brazil: Lessons from a Cooperative Internationalization Project


  • Angela da Rocha, Pontifical Catholic University of Rio de Janeiro
  • Luciana Araujo, COPPEAD Graduate School of Business

Abstract: A growing body of literature provides evidence that the process of global integration has been accompanied by regional concentration of economic activity (e.g., Porter, 1998; Scott, 1996). Studies on the subject have upheld the cluster as a dynamic agent of regional development inasmuch as the cluster creates competitive advantages for member firms. Thanks to this dynamism and the internal processes that generate competitive advantages, internationalization in clusters can occur faster and with broader scope than if companies operate in isolation. Among the factors associated with this phenomenon is the cooperation among companies based in the cluster (Ferreira, Tavares, and Hesterly, 2006; Iglori, 2001). This study focuses on the formation and development of a wine cluster in Brazil, investigating its internationalization process and the extent to which cooperation among firms in the cluster was crucial to the process.

Title: What Do We Know About Multilatinas?


  • Alvaro Cuervo-Cazurra, Northeastern University

Abstract: In this article I review the literature on multilatinas, Latin American multinationals, to take stock of what we know about these firms. Despite having existed for over a hundred years, Multilatinas have received comparatively little attention in the literature. The review indicates that we have a good understanding of the importance of multilatinas, their multinationalization process, and how the pro-market reforms of the last three decades enabled their emergence. However, we know less about the relationship between internationalization and performance and about the process of transformation from new multinational firms into large multinational firms with a global presence.

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