Large Firms and Business Groups in Latin America: Towards a Theory Based,Contextually Relevant Research Agenda

ABSTRACT

Large firms play an essential role in national competitiveness and economic development. With a goal of establishing a research agenda that is both well grounded in relevant theory and that addresses important challenges facing the region, in this paper we examine the organization and operation of large, privately owned firms in Latin America. As has been the case since at least the end of the 19th century, studies have found that Latin American firms are organized into business groups and continue to be owned and managed by families. We probe into the strengths and weaknesses of the Latin American version of business organization, including how groups are financed, their efforts to partner and/or compete with industrialized country multinationals (MNCs), and their chances of success in a global economy. Relying on recent advances in agency and institutional theory, we then develop a number of research propositions and suggestions for future research.

RESUMEN. Grandes empresas juegan un papel esencial en el desarrollo económico y logro de la competitividad nacional. En este estudio examinamos la organización y operación de grandes empresas privadas latinoamericanas, con el propósito de establecer una agenda de investigación profundamente arraigada en importantes datos teóricos y enfocando, concomitantemente, los relevantes retos que enfrenta la región. Tal cual ocurre por lo menos desde fines del siglo XIX, los estudios realizados comprobaron que las empresas latinoamericanas están organizadas en grupos comerciales, y continúan siendo propiedad de y administradas por grupos familiares. Investigamos las fuerzas y debilidades de la versión latinoamericana de las organizaciones comerciales, y también analizamos cómo se financiaban estos grupos, los esfuerzos que realizaban para igualarse a o competir con las multinacionales de los países industrializados (MNCs), y qué posibilidad tenían de ser exitosas dentro del contexto de la economía global. Confiando en los recientes progresos alcanzados por la teoría institucional y de las agencias, desarrollamos varias hipótesis investigatorias, y sugerencias para futuros estudios.

RESUMO. Grandes empresas desempenham um papel essencial na competitividade nacional e no desenvolvimento econômico. Com o objetivo de estabelecer uma agenda de pesquisa que ao mesmo tempo seja alicerçada em bases teóricas relevantes e trate de importantes desafios enfrentados pela região, nós examinamos, neste artigo, a estrutura organizacional e a operação de grandes empresas privadas na América Latina. Como tem sido o caso desde pelo menos o fim do século 19, estudos têm revelado que empresas latino-americanas se estruturam em grupos de negócios e continuam pertencendo e sendo dirigidas por famílias. Nós nos concentramos em pesquisar os pontos fortes e fracos da versão latino-americana de organizaç[otilde]es de negócios, incluindo como os grupos são financiados, seus esforços em estabelecer parcerias e/ou competir com multinacionais de países industrializados (MNCs), e suas chances de sucesso em uma economia globalizada. Baseados nos recentes avanços da teoria organizacional, nós elaboramos, então, uma série de perguntas de pesquisa e sugest[otilde]es para pesquisas futuras.     

Internationalization Strategies Underlying the Performance of Foreign Banks in Latin American Markets

In this article, we evaluate the internationalization strategies underlying the performance of foreign banks in Latin American countries. Based on a multiple case study, we investigated the organizational paths in the study countries, the market segments served and performance. Our results show that it is possible to consider both economic and behavioral perspectives in this kind of analysis in order to map the entry modes and features of large banks in the study countries. We observed that some banks may have similar strategies in local markets, with particular emphasis on local adaptation, while others seem to promote the development of previous corporate characteristics.     

Mean-Reversion and Long Memory in the Stock Market Indexes of Some Latin American Countries

ABSTRACT

In this paper we examine the mean-reversion and long-memory properties in the stock market indexes of some Latin American countries by means of fractional integration. In doing so, we allow for a much richer degree of flexibility in the dynamic behaviour of the series not achieved when using the classical representations based on I(0) or I(1) processes. We use a semiparametric local Whittle estimator based on the frequency domain. The results show that the order of integration of the series is higher than 1 for Argentina, Venezuela and Colombia and is around 1 or slightly higher for Mexico. The results also show that the unit root cannot be rejected for the case of Brazil. Splitting the samples around the periods of crisis, we find long-memory stock market returns in the pre-crisis period for all countries except Brazil. However, using post-crisis data, the unit-root cannot be rejected, which might be consistent with the Efficient Market Hypothesis. A notable exception is the case of Colombia, where long memory is also found in the returns for the post-crisis period.

RESUMEN. En este estudio examinamos las propiedades de la reversión media y de la memoria prolongada en los índices del mercado bursátil en algunos países latino-americanos, a través de la integración fraccional. Utilizando este método, permitimos la ocurrencia de una flexibilidad mucho más rica en el comportamiento dinámico de las series, que no se puede lograr con el uso de las representaciones clásicas, basadas en los procesos I(0) o I(1). Utilizamos un estimador Whittle local semiparamétrico, fundamentado en el dominio de la frecuencia. Los resultados obtenidos muestran que el orden de integración de la serie es mayor a 1 para Argentina, Venezuela y Colombia, y alrededor de o poco más de 1 para México. Además, los resultados también demuestran que, en el caso brasileño, no puede rechazarse la unidad raíz. Al dividir las muestras alrededor de los períodos de crisis, descubrimos que el mercado bursátil con memoria prolongada vuelve a aparecer en el período pre crisis en todos los países menor Brasil. Sin embargo, si usamos los datos post crisis no podemos rechazar la unidad raíz ya que la misma puede ser coherente con la Hipótesis del Mercado Eficiente. Una excepción notable esel caso de Colombia, donde la memoria prolongada también se encuentra en los retornos para el período post crisis.

RESUMO. Neste artigo examinamos as propriedades de reverãs média e memória longa nos índices de mercados de aç[otilde]es de alguns países latino-americanos por meio da integração fracionária. Com isto, permitimos um grau de flexibilidade bem maior no comportamento dinâmico da série, não obtida quando se usam representaç[otilde]es clássicas baseadas nos processos I(0) e I(1). Empregamos um estimador Whittle local semiparamétrico baseado no domínio da freqüência. Os resultados mostram que a ordem de integração das série é maior que 1 para a Argentina, Venezuela e Colômbia e em torno de 1 ou ligeiramente maior para o México. Os resultados também mostram que a raiz unitária não pode ser rejeitada para o caso do Brasil. Dividindo-se as amostras em torno dos períodos de crise, encontramos retornos de mercado de aç[otilde]es de memória longa no período pré-crise para todos os países, exceto o Brasil. Entretanto, usando dados pós-crise, a raiz unitária não pode ser rejeitada, o que poderia ser compatível com a Hipótese do Mercado Eficiente. Uma exceção notável é o caso da Colômbia, onde a memória longa também se encontra nos retornos para o período pós-crise.     

Differentiation strategies in emerging markets: The case of Latin American agribusinesses

This study furthers the research agenda on Porter's generic strategies by exploring their implementation by firms that suffer from under representation in the literature. It focuses on agribusinesses based in emerging markets that specialize in high value added products. Relying on information collected through interviews, and a survey with 66 agribusinesses based in eight countries of Latin America, it examines the factors that distinguish firms implementing a differentiation strategy (DS). The findings provide interesting insights for scholars and practitioners alike, illustrating the strategic initiatives that DS firms use to ensure they command higher than average prices.     

Globalization and the Good Corporation: A Need for Proactive Co-existence

Large corporations are coming under intense pressure to act in a socially responsible manner. Corporations have accepted this notion provided that it is exercised voluntarily. It has also been argued that corporations can do well by doing good, and that good ethics is good business. This paper presents an alternative viewpoint by demonstrating that while voluntary socially responsible conduct is desirable, it plays a rather small role in inspiring good corporate conduct. Instead, (a) it is the external economic-competitive conditions that define the parameters and opportunities for good corporate conduct; and (b) the values and traditions of the corporations, and their perceived risk in exploiting those opportunities, that influence the extent of a corporation's socially responsible conduct. The framework presented here analyzes certain market-competitive conditions, which determine the scope and direction of socially responsible corporate conduct, and the instruments available to society to enhance ethical corporate conduct. It suggests that from society's perspective, we should move away from the notion of corporate social responsibility and toward corporate social accountability. Most modern economies operate under conditions of imperfect competition where corporations gain above-normal profits, i.e., market rent, from market imperfections. Therefore, corporations should be held accountable for a more equitable distribution of these above-normal profits with other groups, e.g., customers, employees, etc., who were deprived of their market-based gains because of market imperfections and corporate power. Three approaches are suggested for measuring corporate accountability through corrections. These are: information imbalance, bargaining power imbalance, and, adjudication, remedy and relief imbalance.     

Undivided Corporate Responsibility: Towards a Theory of Corporate Integrity

In the years since Enron corporate social responsibility, or “CSR,” has become a ubiquitous phenomenon in both research and business practice. CSR is used as an umbrella term to describe much of what is done in terms of ethics-related activities in firms around the globe to such an extent that some consider it a “tortured concept” (Godfrey and Hatch 2007, Journal of Business Ethics 70, 87–98). Addressing this skepticism, I argue in this article that the focus on CSR is indeed problematic for three main reasons: (1) the term carries a lot of historical baggage – baggage that is not necessarily conducive to the clarity of the concept; (2) it is the object of increasing ethical instrumentalism; and (3) given the multiple ethical challenges that corporations face, and given the fact that the “social” responsibilities of business are but one set of corporate responsibilities, a suitable term would have to be more inclusive and integrative. I therefore suggests moving instead toward a sound definition of corporate integrity and aim in this article to develop a working definition by fleshing out “7 Cs” of integrity: commitment, conduct, content, context, consistency, coherence, and continuity. I then discuss how these 7 Cs impact our understanding of CSR or, more broadly, corporate responsibility in general.

首都流通企业文化创新模式研究

首都流通企业文化创新要遵循系统性、个性化、适应性、开放性、竞合性和人本的原则,在充分做好企业文化创新准备的前提下,从员工和企业战略角度评估企业文化创新的需求,根据企业的实际需要制定文化创新的初步方案,然后在企业内部广泛征求意见,对初步方案进行修订,在此基础上,企业文化创新领导小组最终确定企业文化创新方案,并组织实施。文化创新的重要组成部分是对文化创新的效果进行评价,找出问题,提出改进措施,达到强化和巩固文化创新成果的目的。     

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.     

Central banking after the Latin American debt crisis

Stabilization and structural reform that has characterized Latin America as of late is based upon an increasing adherence to sound fiscal and monetary policies. The economic deprivation brought on by the debt crisis has served as a powerful impetus behind these developments. The macroeconomic policies leading up to the crisis have been put aside in favor of a legal framework of transparent budgetary practices and an independent central bank. Fraga's article analyzes the recent evolution of the central banks in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela.     

Latin American Universities and Technology Commercialization

A small but significant percentage of the discoveries made by university researchers have commercial value, especially in fields such as the biomedical sciences, material science, and information technology. Early stage technologies emerging from university labs represent an important source of innovation for technology firms in the United States (US), especially those located in close proximity to elite universities in regions characterized by high levels of entrepreneurial dynamism. Based in part on the U.S. demonstration effect, policymakers in the developing world increasingly view universities as institutions capable of accelerating technology-based economic development. In this article we examine the efforts of elite universities in Chile, Mexico, and Brazil to transfer faculty inventions to the marketplace. On average these institutions have upgraded commercialization infrastructure since the mid-2000s and a select few are beginning to generate significant licensing revenue and viable spinoffs. We conclude with policy recommendations and suggestions for future research.     

Herd Behavior in Latin American Stock Markets

ABSTRACT

This article investigates the presence of herd behavior in Latin American stock markets using the methodologies proposed by Christie and Huang (1995 Christie , W. G. , &; Huang , R. D. ( 1995 ). Following the pied piper: Do individual returns herd around the market? Financial Analysts Journal , 51 ( 4 ), 31 – 37 .[Taylor &; Francis Online] , [Google Scholar]) and Chang, Cheng, and Khorana (2000 Chang , E. C. , Cheng , J. W. , &; Khorana , A. ( 2000 ). An examination of herd behavior in equity markets: An international perspective . Journal of Banking and Finance , 24 ( 10 ), 1651 – 1679 .[Crossref], [Web of Science ®] , [Google Scholar]). Daily closing prices and trading volumes from January 3, 2000 to September 15, 2010 from the stock markets of Argentina, Brazil, Chile, Mexico, and the United States were analyzed. The US market was studied in order to provide a reference for comparison. The shares for which data was collected in each country were those listed in the most representative stock index for each market. It was not possible to establish evidence of herd behavior in any of the five countries studied using the Christie and Huang (1995 Christie , W. G. , &; Huang , R. D. ( 1995 ). Following the pied piper: Do individual returns herd around the market? Financial Analysts Journal , 51 ( 4 ), 31 – 37 .[Taylor &; Francis Online] , [Google Scholar]) method. However, evaluating the data for the entire period using the method proposed by Chang, Cheng, and Khorana (2000 Chang , E. C. , Cheng , J. W. , &; Khorana , A. ( 2000 ). An examination of herd behavior in equity markets: An international perspective . Journal of Banking and Finance , 24 ( 10 ), 1651 – 1679 .[Crossref], [Web of Science ®] , [Google Scholar]) we detected herd behavior in the Chilean market. These results were not affected by the addition of additional exogenous variables representing the September 11 attacks of 2001 and the subprime crisis, or when the effect of the behavior of US shares on other countries was analyzed. Asymmetric herd behavior was detected in the Chilean, United States, Argentinean, and Mexican markets.     

Nuevo Latino: Rebranding Latin American Cuisine

Nuevo Latino Cuisine invites diners to experience the vertigo of consuming a reinvented version of traditional Latin American food while enjoying a cosmopolitan atmosphere at sophisticated restaurants. Using “border thinking” and critical ethnography, this paper discusses how the restaurant industry in the US reproduces colonial desire by aestheticizing and commodifying traditional meals. This article assesses the rebranding of Latin American Cuisine as a fashionable consumer trend where identity, class, and cultural representations are resignified through consumption practices. The central issue guiding this research consists of identifying the rationales and strategies used by the restaurant industry when rebranding Latin American cuisine. Understanding Nuevo Latino at the intersection of hybrid cultural forms, cosmopolitanism, and the power structures of market forces in late capitalistic societies is fundamental to assessing the colonization of lifeworlds by the economic system, which imposes an alternative process of subjection and subjectivation through consumption.     

企业战略管理的信息范式

传统的企业战略管理理论是基于安德鲁斯的把战略管理过程分为制订和实施的两阶段模型,沿着企业外部环境和企业内部因素两个维度展开的广泛研究,形成战略管理各理论流派。结合博弈论与信息经济学理论提出一种新战略管理理论范式,使得当前各主要理论被整合在这一范式之下,使战略管理理论沿着科学化方向发展成为可能。     

机构投资者的积极股东行为分析--从希尔斯百货董事会之争看机构投资者的作用

机构投资者通过发挥其积极股东的作用,对完善我国上市公司治理结构具有重要意义。本文通过对美国百货业巨头希尔斯公司的案例分析,研究了机构投资者参与公司治理,实施积极股东行为的经济动因与作为途径,并探讨了我国机构投资者发挥积极股东作用的条件。     

Uncovering Dimensionality in the Servicescape: Towards Legibility

The type and level of service offered in the service sector is relatively homogenous, and notoriously difficult to distinguish. Company servicescapes are important differentiators and indicators of quality vis-à-vis image and competence. The paper develops an exploratory and conceptual framework that delineates the dimensions of service environments, emphasising those factors that can be successfully manipulated by management. Fieldwork examined a dynamic service environment and analysis revealed that the legibility of the setting (e.g., clear signage and spatial appearance) influenced peoples' moods generally. Analysis suggested that general layouts and legible signage help to induce positive moods, and therefore positive images of the service providers.     

基于企业社会责任理论的危机管理策略研究

面对日益复杂的市场竞争态势,有效的危机管理对于企业的生存和发展至关重要。实践与研究表明,企业社会责任是有效危机管理的核心。本文从企业社会责任的理论角度出发,探讨企业社会责任和危机管理之间的关系,并结合企业社会责任管理和危机管理,给出基于社会责任的危机管理策略。     

Shareholder voting rights in early American corporations

In early American corporations, the power of large shareholders was frequently limited by voting rules that partially disenfranchised them. In particular, stock held in an individual's name was granted a number of votes per share that decreased with the number of shares held. Using data from the corporations created in New York up to 1825, this paper analyses the use of these ‘graduated’ voting rights. Consistent with the view that they were intended to help small investors protect themselves against the predations of controlling shareholders, the data indicate that graduated voting rights were imposed in industries that attracted small investments from ordinary households. The results highlight the importance of concerns over the controlling influence of large shareholders in early corporate governance.     

我国企业会计监督存在的问题与解决对策

会计监督是会计的职能之一.它是通过预测、决策、控制、分析、考评等具体方法,促使经济活动按照规定的要求进行,以保证企业经济业务的合理合法,从而服务于管理和决策.改革开放后,会计涉及的范围不断扩大,业务处理也日趋复杂,投资者、债权人和社会公众等对会计信息的要求越来越高.企业还需要继续强化会计监督,以保证会计信息的质量.     

The rise of super-elite law firms: towards global strategies

This paper reviews the pressures towards globalisation reshaping the corporate law sector. It uses Yip's [Yip, G.S. (1996). Total global strategy (2nd ed.). Englewood-Cliffs, NJ: Prentice-Hall] framework of global industry drivers. The dominant view has been that the globalisation potential of the legal industry is low since there are few global legal products and many regulatory differences between markets. However, within the corporate law sector, strong regulatory differences between countries are outweighed by the combined impact of market, competitive and cost drivers. Evidence from this research shows that the balance of industry drivers is towards there being benefits to the pursuit of global strategies within this sector. In practice, a small number of very large corporate law firms are implementing global strategies in pursuit of specific sources of future competitive advantage. Thus a small ‘super-elite’ of globalising firms is emerging.