Internalisation Theory and the Internationalisation Decision by Brazilian Firms Teoria Da Internalização e a Decisão De Internacionalização De Empresas Brasileiras Teoría De La Internalización y La Decisión De Internacionalización De Empresas Brasileñas (original) (raw)

Determinants of the Recent Internationalization of Brazilian Companies

2012

The recent wave of internationalization among Brazilian companies differs from past experiences, in terms of volume, reach, destination and quality. Brazilian multinationals are not restricting their activities solely to regional markets, nor are their first steps entirely directed towards South America. In amount of investment and number of subsidiaries there are signs they increasingly seek to direct Outward Foreign Direct Investment (OFDI) projects to more competitive markets – including Europe, North America and China – where they compete on an equal footing with major conglomerates for a share of these markets. Some Brazilian companies have previous internationalization experience, and a significant portion had been prepared and initiated outward growth in the 1990s, after the economy opened up. However, the boom of internationalization that began in 2004 took place in such unusual conditions as to deserve highlight and special analysis. A substantial portion of academic litera...

Internationalization and performance: a comparison of Brazilian exporters versus Brazilian multinationals

E & G. Economia e Gestão, 2007

This paper analyzes the relationship between export and the performance of Brazilian companies. To this end, exploratory research was conducted with a sample of 118 out of the 500 largest Brazilian companies. The core hypothesis, which was confirmed, is that there is a positive association between internationalization and performance up to a break point, at which the company becomes a multinational one. Contrary to research carried out in developed countries, the inverted-J curve in the Brazilian case offers an intriguing result, which seems to challenge the 'related-unrelated market perspective' applied to export processes, from the cultural distance approach. Our findings show that, from the level of 15% of exports, results increase up to 100%, and that, precisely when the companies start engaging in foreign direct investment (FDI), an inflexion point appears. This corroborates the perception that the main challenge concerns the transition process from export to FDI.

Does Internationalization Pay off? A Study of the Perceived Benefits and Financial Performance of the International Operations of Brazilian Companies

GCG Georgetown University Journal, 2010

Esta comunicação examina a relação entre o desempenho financeiro das operações internacionais de uma companhia e o grau da sua internacionalização numa amostra de 73 companhias brasileiras. Por um lado, os resultados revelaram que as companhias com maior desempenho nas suas operações internacionais relativamente às suas operações domésticas são menos internacionalizadas nas receitas, activos, empregados, dispersão geográfica de mercados e actividades de cadeia de valor que as suas homólogas mais internacionalizadas. Por outro lado, as análises mostraram que as companhias mais internacionalizadas têm uma maior percepção de experimentarem os seguintes benefícios da internacionalização: «capacidade para responderem rápida e apropriadamente aos clientes internacionais», «fortalecimento da posição competitiva», «diversificação geográfica e menor dependência do mercado interno», «efeito de demonstração no país de origem» e «maior estabilidade nos resultados financeiros e económicos».

The internationalization process of brazilian companies: a study of multiple cases in the heavy construction industry

BAR. Brazilian Administration Review, 2009

The aim of this article is to describe and to analyze how the consolidation in the international markets of Brazilian construction companies occurred. The methodological procedures had been classified as descriptive conclusive research and data was collected under a qualitative orientation. A study of four companies was conducted: Andrade Gutierrez, Mendes Júnior, Norberto Odebrecht and Queiroz Galvão. A theoretical model with four analytical levels was considered: the macro context, the institutional environment, the industry and the firm. The results indicate that consolidation in international markets occurred largely as a result of factors concerning strategic management in response to the institutional processes and the appropriateness of the sector's competitive conditions. In theoretical terms, this article makes progress when understanding internationalization processes is concerned in that it proposes a model that integrates knowledge from the fields of study of administration, organizations and international business. Although the model may be refined in future research, we believe that it reflects an important step toward the development of a broad theoretical frame of reference capable of covering the wealth and diversity that are typical of international activity.

Internationalization generates quality jobs and improves the competitiveness of Brazilian firms

2 Professor of USP 3 Professor of USP 4 Regarding transaction costs, suggests that the economic activities of individuals are coordinated in two alternative manners: spontaneously through the market price mechanisms or planned hierarchically. Outside the firm, price movements direct the allocation of resources in production, being that the market coordinates inter-firm exchanges. Inside the firm these transactions are eliminated and the entrepreneur -not the market -directs the production and intra-firm transactions. The boundary between a firm and the market is located where the marginal costs of each transaction mode are equaled. A firm tends to expand to a point where the marginal cost of organizing a transaction within the firm equals the marginal cost of an open exchange on the market or the costs of organizing another firm. This balance explains the size of the firm. According to , the firm emerges when the market fails. The market is imperfect in organizing transactions because economic agents reveal information in a selective and distorted

The internationalization process of Brazilian heavy construction firms: an institutional approach

The objective of this paper is to analyze the international movement of three major Brazilian heavy construction firms. In order to do this, it considers the endogenous and exogenous variables of the process, in other words, takes into consideration both strategies adopted by the firms, one directed to their capacities and internal interests, and the other to some factors in the domestic and international environments that influenced the external expansion decisions of these corporations. The theoretical framework that provided support for analysis of the cases were an integrative framework between the Dunning's Eclectic Paradigm and the Institutional Theory, which enabled to think international business not as an activity of exclusive interest of the firms, but also as a factor of great importance to the strategic objectives for the development of countries. Therefore, the method used was multiple case study in a comparative perspective, using the triangulation technique to collect data. The results reinforced the theoretical assumptions used in the study that, especially in situations of emerging countries, the institutional environment in which they operate influences the dynamics of corporate internationalization.

Expansion and internationalization of business companies in Brazil: theoretical/methodological cont

Journal of Evolutionary Studies in Business-JESB, 2018

This paper presents the special issue of the Journal of Evolutionary Studies in Business about the internationalization of Brazilian companies. The text aims to shed light on both traditional and new theories of internationalization in order to analyze the trajectories of Brazilian multinationals in light of the world economic scenario of recent decades. This special issue presents five cases of internationalization of Brazilian companies: Embraer, in the aviation sector; WEG, a producer of electric motors; Expocaccer, a coffee cooperative; Gerdau, a company in the steel sector; and Romi, a producer of lathes, machines, and equipment. This introductory article intends to recover theoretical elements about the internationalization of firms and underline the role of the State in the development of Brazilian companies.

O papel das empresas transnacionais na inserção internacional da produção industrial brasileira no contexto da reestruturação produtiva

2016

Este estudo analisa a influência do padrão de comércio internacional das Empresas Transnacionais (ETNs) sobre a inserção internacional da indústria de transformação brasileira entre 1995 e 2005, com base em dados do Censo de Capitais Estrangeiros do Banco Central do Brasil. O trabalho tem como objetivo investigar em que medida o aumento da inserção internacional das empresas transnacionais nas economias nacionais tem contribuído para a evolução dos produtos brasileiros em termos de comércio internacional. Concluiu-se que a participação significativa de empresas transnacionais no comércio exterior brasileiro revela que a inserção internacional da produção industrial do país apresenta uma crescente dependência de decisões estratégicas das ETNs.This study analyzes the influence of the international trade pattern of Transnational Corporations (TNCs) on the international insertion of Brazilian manufacturing industry between 1995 and 2005, based on data of the Census of Foreign Capitals o...

The transaction cost theory of the multinational enterprise

1991

Until the development of transaction-cost theory, economics did not have a theory of why firms exist and grow. Transaction costs theory seeks to explain which activities are organized within the firm and which ones are performed by independent agents. It is a theory of the role and size of firms. Since multinational enterprises are firms that extend their hierarchies across national boundaries, transaction costs theory can throw considerable light on the reasons behind the existence and the growth of such firms [4; 17; 9; 15]. With a few notable exceptions [5: 9; 15], most applications of the transaction costs approach to the multinational enterprise have focused on the internalization of knowledge. This reflects the postwar predominance of horizontal investments in manufacturing by knowledge-intensive firms. This emphasis on the internalization of knowledge as a cause of multinational expansion may have given the erroneous impression that the applicability of transaction costs theory is restricted to post-World War II multinational enterprises. This paper argues that this is not the case. It seeks to explain the existence and growth of multinational enterprises in the tin industry, and, in the process, shows that transaction costs can be used to account for a very wide range of multinational enterprises, including those that do not fit the traditional mold. Recent research in business history has shown that the growth of European multinational enterprises differed in many ways from that of their *This paper has benefited from frequent discussions with Mira Wilkins and from Steve Nicholas' comments. Financial support from the Wharton Center for International Management Studies is gratefully acknowledged.

Expansion and internationalization of business companies in Brazil: theoretical and methodological contributions

This paper presents the special issue of the Journal of Evolutionary Studies in Business about the internationalization of Brazilian companies. The text aims to shed light on both traditional and new theories of internationalization in order to analyze the trajectories of Brazilian multinationals in light of the world economic scenario of recent decades. This special issue presents five cases of internationalization of Brazilian companies: Embraer, in the aviation sector; WEG, a producer of electric motors; Expocaccer, a coffee cooperative; Gerdau, a company in the steel sector; and Romi, a producer of lathes, machines, and equipment. This introductory article intends to recover theoretical elements about the internationalization of firms and underline the role of the State in the development of Brazilian companies.