The multinationalisation of South African telecommunications firms into Africa

The study investigates the main factors considered by telecommunications firms when making a decision to undertake Foreign Direct Investment (FDI) into Sub-Saharan Africa (SSA). This encompasses the reasons for investing, the methods of entry into the identified market and the factors influencing their decision. The methodology employs a survey questionnaire which was sent to telecommunication firms representing 80% of the revenue generated by this sector in SSA. The research reveals that market size, regulatory environment and government policy are the three most important factors influencing the decision to undertake FDI. Furthermore, the main reasons for deciding to enter SSA are for market and profit growth due to saturation in their existing markets, as well as for diversification of risk. They demonstrate the key competencies that South Africa Multinational Enterprises (MNEs) have in navigating the complexities of doing business in institutional voids. The liability of being from the relatively small emerging market of South Africa and operating in a country of institutional uncertainty has allowed South African companies to internationalise into markets that other MNEs will not venture into and thus turn a liability into an advantage.     

Public finance,government spending and economic growth: the case of local governments in Brazil

The impact of local government spending on output growth is estimated using a panel of Brazilian municipalities during 1985–1994. Attention is focused on three expenditure categories, housing/urbanization, health/sanitation, and transport services, which are expected to be growth-enhancing, and their sources of finance (local taxes, intergovernmental transfers, and borrowing). The determinants of these spending categories are also examined. The size of the municipality, measured by the resident population, is shown to affect government spending nonlinearly. This is a contribution to the recent empirical literature on the linkages between decentralized government spending, public finances, and economic growth at the local, rather than national, level.     

The Marisol case: Challenges of international growth for a successful Brazilian designer apparel firm

Marisol has forged a successful legacy in Brazil in the market for clothes with a sophisticated, stylish look. Success in Brazil enabled the firm to garner overseas customers. The establishment of subsidiaries in Argentina, Italy and Mexico, as well as sales operations in several countries – including Chile, Colombia, Spain, and the USA, among others – represented important steps in Marisol's internationalization. Marisol's executives have to decide on several issues: how to consolidate their position in the USA market and in other countries? What modes of operation – own stores, franchisees, multi-brand stores, private label supply – to use in which countries? Which brands to launch abroad and whether to adapt them to local tastes, while exploiting the image of Brazilianness?     

Country effect on firm performance: A multilevel approach

The debate about the impact of environmental constraints on firm performance in developing countries is relevant for business enterprises and governments. However, the academic literature offers limited empirical evidence comparing firm performance in emerging and developed countries. This paper performs a statistical analysis based on a sample of more than 10,000 firms in a 10-year span. A cross-classified 3-level hierarchical linear model allows the estimation of country, industry and country-industry interaction effects, which have roughly the same relative importance each. The analytical procedure is able to estimate the influence of each specific country on firm performance and produce a ranking of nations based on this effect. Country effects have a greater positive influence on firm performance in emerging countries than in more developed economies.