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Lessons learned from Swiss born globals entering Brazil

Kaja Prystupa-Rządca (Department of Management, Kozminski University, Warsaw, Poland)
Anna Lupina-Wegener (HES-SO, University of Applied Sciences and Arts Western Switzerland, School of Engineering and Management, Yverdon-les-Bains, Switzerland)
Claudia Johannot (UBS, Dubai, United Arab Emirates)

Journal of Entrepreneurship in Emerging Economies

ISSN: 2053-4604

Article publication date: 30 August 2019

Issue publication date: 17 January 2020

Abstract

Purpose

The purpose of this study is to contribute to managers’ understanding of the internationalization of born global (BG) firms from developed countries in emerging markets. Adapting the new institutional sociology approach, the authors provide insights into how BGs might strive to bridge the institutional distance.

Design/methodology/approach

An explorative, multiple case study is used focusing on two Swiss BG firms in Brazil.

Findings

The study shows that these two firms faced similar institutional challenges. However, they approached them in different ways and achieved different outcomes. The comparison of these two cases highlights key factors that may influence successful internationalization, namely, niche strategies, high commitment modes of entry and the liability of outsidership.

Research limitations/implications

The main research implication is that the market mode of entry and high commitment entry modes are conductive to local market knowledge acquisition. Future research should investigate how western BGs might overcome the disadvantages of foreignness and effectively gain acceptance in emerging markets such as in Brazil, China or India. This could be done by looking at micro-processes, e.g. multiple identities in which BGs might strive to simultaneously fit in and stand out in the host market.

Practical implications

The findings, which uncover key factors that influence internationalization, shall contribute to managers’ understanding of how BG firms from developed economies enter emerging markets and overcome challenges.

Originality/value

Comparing these two cases highlights key factors that may shed light on the successful internationalization of BGs from developed countries in emerging markets. The authors first describe the institutional isomorphic pressures on the two Swiss BGs in Brazil. Second, the authors reveal how they engaged in isomorphic processes to bridge the institutional distance.

Keywords

Acknowledgements

The authors would like to thank the audience at the 2017 BAM annual conference for their constructive comments as well as our colleagues from swissnex Brazil. We would particularly like to thank Mr Adriano Bürgi and Ms Maria Conti from swissnex, for facilitating the empirical investigations.

Citation

Prystupa-Rządca, K., Lupina-Wegener, A. and Johannot, C. (2020), "Lessons learned from Swiss born globals entering Brazil", Journal of Entrepreneurship in Emerging Economies, Vol. 12 No. 1, pp. 125-143. https://doi.org/10.1108/JEEE-12-2018-0139

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited