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.     

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.     

Latin American franchise internationalization: The impact of institutional environment

We analyze the internationalization of Brazilian franchise chains in Latin America. A total of 119 observations verify international commitment in each country in relation to institutional environment factors and how they are moderated by chain size and industry. The results show that despite all institutional aspects having a significant effect, their explanatory power depends on chain size. Larger franchise chains usually choose countries with better institutional aspects in terms of contract compliance and business freedom, even if the efficiency of business conditions in these countries are not the best in Latin America. In this study, were used public data from international organizations that report on the ease of doing business, level of corruption, political risk, and legal regulations. Specifically, it contributes by using institutional theory in franchising in order to understand the process of chain internationalization originating from emerging markets. Our results, in part, contradict the idea that the origin disadvantage is always an advantage of internationalization.     

Patterns of Economic Interdependence in Latin America

This study investigates business cycle synchronization and transmission patterns among the major Latin American countries and their linkages with the United States and Europe. Correlations, principal components, trade patterns, vector autoregressions, and impulse responses are used to discern the business cycle transmission patterns.

There is moderate evidence of a unique Latin American business cycle and of business cycle transmission among the Latin American economies. Most transmission linkages come from outside Latin America. The European business cycle has a slightly stronger influence upon most Latin American economies than the influence of the US business cycle. Brazil is clearly the most influential Latin American economy in terms of business cycle transmission.     

Needed B2B marketing capabilities: Insights from the USA and emerging Latin America

Firms from all parts of the world are expanding operations globally in a turbulent economic context, requiring the understanding of nontraditional markets. Much attention has been focused on China and India, but researchers have neglected Latin America, a region economically as important as Germany, India, Japan, and South Korea. Latin America, as is true of many developed and emerging markets, has a strong presence of industrial ? or business to business (B2B) ? transactions. The configuration and convergence-divergence of marketing capabilities are relevant for the understanding of the globalization phenomenon. This study aims to examine B2B marketing capabilities of firms in Chile, Mexico and Peru (as Latin American countries), seeking conceptual issues in order to comprehend their business perspectives and contribute to the almost nonexistent body of research in this region. How do the results from Latin America compare with the USA? While the study shows directional convergence between Chile and Peru, there also is interesting divergence between all Latin American countries and the USA. The findings offer a portfolio of marketing topics that we believe are worthy of practitioner and academic consideration. We propose a model of convergence-divergence of B2B marketing capabilities across nations and state propositions for hypothesis testing.     

Cross-Functional Globalization Modules

ABSTRACT

The purpose of this study is to present cross-functional international teaching modules. The modules presented in this paper are intended to assist higher education institutions in initiating and implementing the first level of internationalization of the business school curriculum. Although the focus is on achieving a level of global awareness, the paper also addresses how the first stage of globalization leads to advances in the second stage-understanding. Applicable means and methods to initiate the “internationalization” process for business schools in the internationalization process are provided. The paper also addresses the students' perceptions of this process, especially concerning global awareness. Implications, challenges, and recommendations are provided.     

Internationalization of MBA Program in Asia-Pacific

Abstract

With the global village becoming a reality, efforts at the internationalization of business education have ceased to be merely fashionable. The internationalization of business education has become an increasing relevant and important goal for business schools. Most of the efforts have been focused at the internationalization of MBA programs as this is the level of business education targeted at the training of middle management personnel, for whom the creation of a global mindset and the exposure to the international realm of business would have the most immediate effect. With the Asia-Pacific becoming a major arena of international trade and business in what has been called the Pacific century, the internationalization of MBA programs in Asia is of great interest as most of the efforts at internationalization of MBA programs have taken place in developed countries, with much of the literature being about the North America and European experience. Little is known about the MBA programs offered in Asia and their internationalization. This paper provides some insights on the internationalization efforts at the Nanyang Business School (NBS), Singapore. The experience at the NBS is unique because its efforts at internationalization have coincided with government policy initiatives in encouraging Singapore businesses to extend their operations into countries of the region. The paper provides some lessons from the experiences at regionalizing the MBA programs in China, India and the transitional economies of Vietnam, Myanmar and Cambodia. Apart from the admission of international participants to its programs and the changes to its Business Study Missions, new initiatives have been introduced in the form of the MBA in International Business. The paper also explores other future initiatives for the internationalization of MBA programs in Asia-Pacific.     

A retrospective of international business education in the United States over the past fifty years

International business relationships are almost as old as mankind, but the idea that people needed to be educated to manage global business enterprises is less than 50 years old. The American Graduate School of International Management (Thunderbird), established in 1946 was the first school to provide languages, international studies, and business management as a basic education in international management. Business schools in America have been slow to realize and to promulgate courses and curriculums in the field. It has only been in the last ten years that the American Assembly of Collegiate Schools of Business, composed of over 700 colleges and universities in the country, has become an advocate through a revision in its standards. After the words “and worldwide” were inserted in the AACSB standards of accreditation, international business education began to permeate the offerings of American business schools.     

Fostering International Technology Transfer Through Climate Technology Networks Between European and Latin American Universities

Based on experiences gained in the frame of a networking scheme that involves universities from Latin America and Europe, this article addresses international technology transfer (ITT) of climate technology through networks bridging current knowledge and technology gaps between academia, businesses, authorities, and civil society. It is argued that higher education institutions (HEIs) can make a substantial contribution to a sustainable socioeconomic development in Latin America (LA) and at the same time reduce its social vulnerability to climate change impacts. Most research and development in LA is carried out in HEIs, not in industry. Consequently, research agendas are uncoupled from business needs, and university research remains largely uncommercialized. Further, spillover effects, which may benefit businesses in the home country, remain limited. This article raises some opportunities for Latin American HEIs to drive the improvement of local adaptive capacity through ITT and creation of the corresponding capacities, especially in terms of research and development, consultancy, and qualification of human capital in the field of climate technologies. It is argued that climate change poses many challenges to all sectors of society, and the improved international transfer of knowledge and climate technology may result in reducing social and economic vulnerability to future climate impacts in LA. Finally, some recommendations are given that may support current efforts to reduce the overall vulnerability to climate impacts through fostering the social and economic development in Latin America by means of ITT.     

The internationalization of Nigerian firms: Motivations and location patterns

Despite the increased number of studies of the internationalization of emerging‐market multinationals (EMNCs), Latin American and Asian firms have dominated the focus of such studies, while the study of the internationalization process of sub‐Saharan African firms in the international business literature is quite limited. Therefore, this article examines the motivations and location patterns of the internationalization process of four Nigerian firms through a multiple case study approach. The findings show that the internationalization of the Nigerian firms is a recent phenomenon, but the foreign investment pattern reflects a pan‐African investment strategy. However, the findings also reveal that the firm‐specific advantages that had been accumulated in the domestic market, coupled with home‐country factors and regional‐/host‐market factors, were key determinants of the motivations and location patterns in the internationalization process of Nigerian firms.     

Networks,Entrepreneurial Orientation,and Internationalization Scope: Evidence from Chilean Small and Medium Enterprises

During the last 20 years, the literature on internationalized small firms discussed at length the speed of internationalization, illustrating the importance of born globals. The geographic scope of small firm internationalization and its implications for international business and entrepreneurship theories has however been overlooked, especially with regard to firms based in Latin America. This study expands the research agenda on the effects of networks and entrepreneurship orientation for the internationalization strategy of small firms by examining their effects on internationalization scope. It uses survey data from small firms based in Chile. The findings suggest that the greater the number of networks utilized, the more entrepreneurs are likely to target markets based in diverse regions of the world. The study has managerial and policy implications, suggesting that nurturing diverse international networks can help entrepreneurs reach a broader number of markets.     

Developing an Interdisciplinary Major in International Business

ABSTRACT

Since the change of the accreditation standards by the American Assembly of Collegiate Schools of Business (AACSB) requiring internationalization of the business school curriculum about twenty years ago, different models of internationalization have been developed and tried by different types of business schools across the nation. However, no single model has emerged as an ideal model suitable for all kinds of institutions, large or small, urban or rural. At small and rural universities, internationalization efforts pose some extra challenges because of the general lack of global exposure and practices among its faculty and students, lack of adequate resources, financial crunch and locally centered vision of its leadership. This paper describes how a small and rural university has successfully implemented its own model to internationalize its business programs in spite of all the financial and non-fiscal challenges. Such a model could be emulated by similar small and rural institutions across the country.     

Comprehending the outward FDI from Latin America and OCED: A comparative perspective

This study examines the determinants of outward foreign direct investment (FDI) from Latin American countries and compares it with their OECD counterparts. Our analysis is based on a sample of 45 countries, 13 from Latin America and 32 from the OECD, over the period 2001–2012. We find that the outward FDI from Latin America is more likely to be located in geographically proximate countries and in countries with similar culture and language than that from their OECD counterparts. We also show that Latin American outward FDI is less likely to be resource seeking. This presumably reflects the rich natural resource endowments and agricultural potential in major Latin American countries. Further, outward FDI from Latin America is more likely to be concentrated in countries with a similar corruption environment than that from their OECD counterparts. This might indicate a broadly similar nature of corruption across Latin America due to shared cultural, political and economic legacies.     

International business education of the United States in the 1990s: Accredited vs. nonaccredited schools

This article reports the status of the international business education in the United States as of the 1990s and examines the differences between AACSB accredited and nonaccredited business schools regarding the various aspects of internationalization. The overall conclusions are that along all dimensions significant progress has been made regarding internationalization. Accredited schools have progressed further than nonaccredited schools. Nevertheless, many of the schools have not aimed very high or made major changes in structures, operations, incentives, or requirements of their college to accommodate internationalization. © 1995 John Wiley & Sons, Inc.     

Book Reviews

The rise of graduate business schools occurred during a period of enormous growth, followed by dramatic decline in the fortunes of American business. Because so many M.B.A.-educated executives had difficulty managing their companies' response to dramatic changes in markets and technology, this study examines how business education has influenced managerial attitude and practices. Columbia and Harvard Business Schools were examined to see how, as well, their educational approaches provided managers with the skills, information and confidence to make both entrepreneurial and operational decisions. Both schools effectively prepared their graduates for operational decisions, but did not successfully provide their managers with the skills and knowledge to facilitate entrepreneurial decisions. Moreover, the study also found that American business was not actively engaged in the direction of graduate business education. Thus, the reliance of American business upon graduate business schools may have had consequences for America's business.     

Business Ethics in Latin America

Business ethics is a relatively new topic of academic discussion in Latin America. Corruption and impunity came to be serious moral diseases in the region, probably as a result of a long period of dictatorship in most countries. Low ethical standards in the politics have had deep impact on individuals, organizations and economic systems. Excessive consumption, materialism and selfishness, in contrast with real poverty, have been responsible for a sloppiness in attitudes and principles in many Latin American countries. Even though the majority of the population belongs to the Roman Catholic Church, the lack of education has led people to a dichotomy: faith and business practices are often very distant from each other. Several isolated efforts have been done in order to enhance business ethics through education, publications and professional activities. The relationship business-academia has proved to be an excellent initiative for this objective, mainly in Mexico, Brazil and Peru.     

Organizational slack as an enabler of internationalization: The case of large Brazilian firms

In this paper, we address an empirical puzzle. We note that a deliberate and serious drive to internationalize has occurred rather late in the evolution of large Brazilian firms. Meanwhile, and despite their late internationalization, these Brazilian firms expanded rapidly and intently. Despite the rich literature on Emerging Market Multinational Enterprises (EMNEs), there is still much contention on what drives rapid EMNE internationalization, particularly for the less explored firms from Latin America. Using an inductive case study of five leading Brazilian MNEs, we bring new insights on this neglected question. We unveil that the existence of organizational slack (of operational, managerial, and financial nature) can indeed facilitate rapid internationalization, particularly when triggered by unique home country conditions (e.g., regulation; rising cost of doing business at home; exhaustion of profitable growth opportunities in the domestic market).     

Culture and International Anti-Corruption Agreements in Latin America

This paper analyzes the likelihood that recent conventions against corruption signed by the OECD and the OAS will be effective in Latin America. It begins by looking at the cultural context of corruption in Latin America and examines efforts by Latin American signatories to implement both agreements. It then evaluates the extent to which these efforts will prove successful. It concludes with suggestions for the development of culturally sensitive policies that will be effective in the fight against corruption in Latin America.     

The role of context in SME internationalization – A review

This article reviews how context has been considered in studies on SME internationalization. It examines 333 articles published during the period 2010–2020 in leading international business, entrepreneurship, strategy and international marketing journals. It identifies their key findings, discusses the theoretical perspectives informing this literature, analyzes conceptual and methodological challenges, and suggests paths for theory development and future research. The review also provides a platform from which to address some of the limitations in international business [IB] theories when applied to SMEs, including organizational size as a boundary condition.