Latin America: Environmental and firm-level challenges

During the last decades Latin America, as the rest of the world, has gone through a process of increased commercial openness and due to the commodities price boom of the last years the region has grown significantly. However competitiveness hasn't improved much, mostly due to lack of concern from governments. Companies, though, cope with the increase in competition resulting from the greater openness by refining their management practices in the different management areas: marketing, finance, information technology and strategy. Academics study these effects in the papers that comprise the special issue of the Journal of Business Research with the best papers from the conferences of the Business Association for Latin American Studies (BALAS).     

Entrepreneurship and competitiveness dynamics in Latin America

This study analyses the relationship between entrepreneurial dynamics and the level of competitiveness in Latin American countries. Based on a stage of economic development model, we demonstrate that Latin American countries under the model followed different paths related to competitiveness. These different paths can explain the effect of specific competitiveness conditions on entrepreneurial dynamics in Latin America.

Determinants of cross-border M&As in Latin America

This article analyzes the determinants of cross-border M&As in the Latin American region during the period 1998-2004. Using a unique dataset of 868 Mergers and Acquisitions (M&A) events, the study focuses attention on the effect of macroeconomic and investor protection conditions in the countries where the companies reside over the likelihood of these companies participating in a cross-border M&A transaction. The study considers the effect of company-specific variables in the likelihood of going cross-border. Univariate analysis and logistic regressions strongly support the idea that better economic and business-friendly conditions in the countries where the target operates, increase the likelihood of cross-border merger. Results show that not only is the business environment in the target country important but also in the bidder country. Lower levels of property rights protection in the acquirer country negatively affect the likelihood of a cross-border deal. Finally, the likelihood of a cross-border merger increases when the target faces higher cost of funding than the acquirer's.     

Uncertainty reduction mechanisms in cross-sector alliances in Latin America

The present study explores three uncertainty reduction mechanisms that arise in the context of business alliance formation to assess whether these same mechanisms also operate in the development of alliances between non-profits and businesses. Secondary data from field-based case studies of Latin American cross-sector alliances are the focus of this analysis. The findings show that the same mechanisms operate to reduce uncertainty in cross-sector alliance formation and that alliance experience appears to determine the presence of some mechanisms.     

Ownership and capital structure in Latin America

This study evaluates the capital-structure determinants of Latin American firms using a comprehensive sample covering seven countries. Firms in the region have debt levels similar to those of U.S. firms, which is puzzling, given that Latin American firms experience relatively lower tax benefits and higher bankruptcy costs. This study argues that ownership-concentrated firms avoid issuing equity because they do not want to share control rights. Latin American firms have high ownership concentration, which creates an ideal setting to study how ownership concentration explains firms' capital structure. Consistent with the control argument, this study finds a positive relation between leverage and ownership concentration, when losing control becomes an issue. Also, the study shows a positive relation between leverage and growth. In addition, the study reports that other determinants that do not proxy for control rights are consistent with previous findings. Firms that are larger, have more tangible assets, and are less profitable are also more leveraged.     

Strategic management in Latin America: Issues and assessment

This paper summarizes the best papers of the Strategic Management in Latin America (SMLA) conference which took place in January 2009 in Sao Paulo. Within a context of economic crisis that started in 2008 the authors find that the matters of business strategy within Latin America, addressed in the paper of this special issue, are relevant today just as when the authors submitted their papers. The strategic choices made by individual firms independent of the ever changing economic climate in which they find themselves is the key to the firm. The papers in this special issue cover a variety of topics encompassed within the area of strategic management: competitiveness, strategy formulation and execution, functional business disciplines and institutional strength in Latin America.     

An analysis of the predictors of software piracy within Latin America

Corruption has become an increasingly salient issue in recent years due to the increasing pressure placed on top management teams of multinational firms to maintain high moral standards in all facets of their operations. The level and scope of corruption in a particular country is worthy of consideration as companies seek potential export markets and global partners. While macro-level academic research related to causes of corruption has burgeoned in the past decade, there is a lack of depth and breadth with respect to corruption research in Latin America. The current study analyzes patterns of software piracy (a notorious type of corruption) for 20 Latin American nations. Results indicate that economic growth, foreign direct investment, Internet usage, and development assistance relate to software piracy rates in Latin America.     

International Capital and the Environment in Latin America

Summary

This century's end has been witnessing an increase in environmental concern. While initially a subject of developed countries, developing countries began to realize that the trade off between developing and conserving the environment has to be equated to give present and future generations a chance of success in their development efforts. Thus far, the approach taken by both developed and developing countries towards correcting environmental problems has been primarily dominated by command and control type of regulations, whose success is clearly a function of the regulator's enforcement capacity. Yet, there are signs that this approach is changing towards a more participatory mixed environmental policy model. This change has further stimulated the growing “environmental industry,” in which international capital plays a major role. This paper discusses these recent trends in the context of the conservation of the Latin America and the Caribbean environment.     

Antecedents of importer relationship performance in Latin America

Emerging market importers are increasingly engaging in relationships with foreign suppliers. Nevertheless, characteristics of the institutional and cultural environments of countries may affect relationship behavior. Furthermore, research on relationship marketing primarily focuses on the marketing activities of exporters from developed countries and much less attention is paid to the import side of the exchange process. Thus, the objective of this study is to empirically examine importer relationship performance in a Latin American context. This article proposes and tests a conceptual model that includes the antecedents and outcomes of trust and commitment with a survey of Chilean importers. The model uses confirmatory factor analysis (CFA) to develop the construct measures and structural equation modeling (SEM) to test the model. The findings of this study contribute to a better understanding of the driving forces of trust and commitment and their influence on importing firms' performance in an emerging market context.     

Labor markets in Latin America: a look at the supply-side

This work asks whether there is a supply-side story to be told about labor market outcomes in Latin America. We present stylized facts about the connection between the demographic transition and changes in education (the size and quality of the labor force), with labor supply, inequality, and unemployment. The main conclusion is that the neglected topics of demographics and education improve our understanding of the overall decline in employment, the changing pattern of unemployment, and the rise in wage inequality. By adding them to the well-established demand and institutional factors behind these outcomes, we can obtain a clearer picture about labor markets in Latin America.     

Economic integration across Latin America: Evidence from labour markets, 1990–2013

Combining macroeconomic and microeconomic data and three indicators of international market integration, this paper assesses the degree to which Latin American labour markets are integrated. The results suggest that relative to East Asia, Latin American labour markets are somewhat more integrated, but considerable differences across countries persist. In addition, the evidence indicates that the degree of labour market integration across Latin American borders is significantly less than that of labour markets within the United States in two of the three indicators. These differences may suggest opportunities for efficiency gains from further labour market integration.     

Innovation and business research in Latin America: An overview

Innovation in Latin America is a challenge for achieving development. Several Latin American countries and businesses are attempting to increase innov ation and entrepreneurship but they face substantial challenges and difficulties. Institutional, governmental and business policies and practices need to be enhanced in order to increase such innovation. Increasing business research in Latin America and university-business partnerships is probably key in such endeavor. This special issue provides some evidence regarding these challenges at the company level, industry level, and country level. This issue also includes three cases showing Latin American company experiences with financial, marketing and new product innovations and market changes.     

浅析拉美国家反倾销调查中的领事认证制度

拉丁美洲地区的一些国家在反倾销调查中对国外企业提交的应诉材料存在领事认证的要求。这种要求给国外企业尤其是中国企业的应诉造成了不便。文章简要介绍和分析了拉美国家反倾销中的领事认证制度,并结合我国的具体情况提出了一些建议。     

A Value-based Framework for Understanding Managerial Tolerance of Bribery in Latin America

The cross-cultural literature is reviewed and integrated together with attitude theories, thereby outlining a model through which certain values influence the intervening variables that ultimately lead managers to tolerate employee bribery. The case of Latin America is employed to illustrate how regionally dominant cultural values may shape managers’ attitudes, subjective norms, and perceived behavioral control, which in turn affect tolerance of employee bribery. A series of research propositions and practical recommendations are derived from the model.     

Latin American firms competing in the global economy

As part of a cooperative effort between the Journal of Business Research (JBR) and the Business Association of Latin American Studies (BALAS), this special issue brings updated research on the Latin American business environment. Out of 226 papers submitted to the BALAS 2012 conference, which was hosted by the Pontifical Catholic University of Rio de Janeiro (PUC-Rio), 22 were pre-selected to run for publication in this special issue — and only 14 actually were accepted after the demanding three rounds of a double blind review process that was run after the conference. This introduction to the special issue of the JBR on the BALAS 2012 conference brings an overview of the changes that have taken place in the business environment of Latin America, the evolution of the internationalization behavior of Latin American firms and the changes in their strengths to compete both domestically and abroad.     

对外开放与发展中国家的收入不平等:基于亚洲和拉美国家的比较研究

本文基于要素禀赋理论,在将劳动力划分为低、中、高技能三类的基础上,选取亚洲和拉丁美洲部分发展中国家1960-2005年的数据,建立非平衡面板模型,分析两地区的开放对国内收入分配的影响。实证结果表明,亚洲和拉丁美洲发展中国家的对外开放确实对国内收入不平等起到推动作用。目前的开放有利于中等技能劳动力相对丰裕的发展中国家,而不利于低技能劳动力相对丰裕的国家。总体的贸易依存度对拉美不平等的推动作用更大,但外资对亚洲不平等的推动作用更大;制造业出口倾向于扩大拉美国家的收入差距而缩小亚洲国家的收入差距。     

拉丁美洲农业利用外国直接投资的实践及启示

拉美农业利用外国直接投资(FDI)的实践表明,外国直接投资在促进拉美农业发展的同时,也给拉美农业带来了诸如被跨国公司支配、转移不适宜技术、造成单一的农业生产结构、环境破坏和劳动力失业等一系列社会经济问题.文章针对拉美农业利用外国直接投资的教训,提出我国农业利用外国直接投资必须遵循的原则.     

International Stock Market Linkages and Spillovers: Evidence from Three Latin American Countries

ABSTRACT

Using a multivariate exponential generalized autoregressive conditionally heteroscedastic (M-EGARCH) model, this study examines price and volatility spillovers and response asymmetries between the equity markets of the United States and Brazil, Chile and Mexico. Our results vary depending on the openness of the country in terms of international trade. Evidence indicates that there are price and volatility spillovers from the United States to Mexico and Chile and but not to Brazil. In addition, our results indicate response asymmetries for Mexico and Chile, suggesting that the Mexican and Chilean markets are more sensitive to negative innovations originating from other markets than to positive innovations.

RESUMEN. Este estudio examina contagios de precio y volatilidad, y respuestas asimétricas entre los mercados de capital de Estados Unidos y Brasil, Chile y México, fundándose en un modelo exponencial generalizado multivariado, con un condicionante autoregresivo heteroscedástico (M-EGARCH). Los resultados obtenidos varían, dependiente del nivel de apertura de un país en lo que concierne al comercio internacional. Las pruebas indican que existen contagios de precio y volatilidades desde los Estados Unidos hacia México y Chile, pero no hacia Brasil. Además, los resultados también indican asimetrías de respuesta para México y Chile, sugiriendo que estos dos mercados son más sensibles a las innovaciones negativas que se originan en otros mercados, que a las innovaciones positivas.

RESUMO. Usando um modelo condicionalmente heterocedástico, autoregressivo, generalizado, exponencial e multivariado (M-EGARCH), este estudo examina contágios de preços e volatilidade, e assimetrias de resposta entre mercados de ações dos EUA e Brasil, Chile e México. Nossos resultados variam, dependendo da abertura do país em termos de comércio internacional. Os dados indicam que existem contágiosde preço e volatilidade dos EUA para o México e Chile, mas não para o Brasil. Além disso, nossos resultados indicam assimetrias de resposta para o México e Chile, sugerindo que estes mercados são mais sensíveis a inovações negativas originárias de outros mercados do que a inovações positivas.     

Ethical Differences Within Latin America

Abstract

As the volume of trade within Latin America increases an understanding of cultural differences between countries will become increasingly important. One key issue that has received little attention to date is the variation in ethical beliefs across Latin American borders. In this study the impact of cultural attributes on four key ethical dilemmas is examined. Vignettes are developed for ecological conservation, bribery, sex discrimination, and child labor dilemmas and are included in a survey which is administered to multinational managers from Ecuador and Chile. Results indicate that certain cultural traits are linked to responses to each of the ethical dilemmas.