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The learning outcomes are as follows: students will identify the reasons for a firm to internationalize and its specific internationalization entry mode; students will distinguish how to follow the client and how physic distance strategies work; students will analyze a host country’s external environment using the PESTEL framework, and they will analyze the international strategies followed by a multinational enterprise using the integration-responsiveness framework as well.

The authors explore the case of DICOMA Corporation, a Costa Rican multinational enterprise with presence in five countries. Adrian Sanchez, who is Dicoma’s president, needs to craft an international strategy to increase the international sales in the foreign markets where the firm operates. The company may follow two paths. On the one hand, Dicoma can adopt the strategy of following its major clients to expand overseas, which will lead to the opening of operations in more countries, but making the foreign sales highly dependent on these types of partnerships. This has been so far the path pursued by Dicoma in its international expansion. On the other hand, Dicoma can opt to focus on increasing commitments in the existing international markets where it already has operations by capturing new clients in those locations but scarifying the potential business opportunities to enter into other countries in partnership with its major clients.

Post-graduate early stage business students enrolled in programs such as Master of Business Administration, Master of Management, Master of International Business, executive education programs, among others.

Teaching notes are available upon request for educators only. These teaching notes should be shared solely with the instructor and students should not have access to. Please contact your library to gain login or email support@emeraldinsight.com to request teaching notes.

CSS 5: International Business.

The learning outcomes are as follows: to analyze host market characteristics and consumer behavior to develop sound value propositions; to distinguish the characteristics of traditional retail as opposed to the ones of modern retail; to identify the potential benefits and challenges of working with traditional retail; to discuss how informality may affect business relations; and to identify potential avenues to align divergent interests between the focal firm and traditional retailers.

The case described the situation faced by French International Company (FICO), a leading manufacturer of cigarettes, after the acquisition of Fosforera Colombiana (FOCOSA) in Colombia. FICO aimed to leverage the leadership position of FOCOSA and of its flagship brand Ferrari Lights that possess a 60% market share. However, after just a few months, it was clear that the acquired subsidiary was not performing adequately. The financial results obtained were disastrous. To face this situation, FICO appointed as the new marketing director to Waldo Tarantini who has experienced dealing with informal markets. To be aligned to the Colombian consumption pattern of five cigarettes daily, Waldo decided to launch a new presentation of the leading brand denominated Ferrari five, a package of 5 cigarettes at COP 1000. Considering that more than 60% of the sale can be explained by traditional retail, it was mandatory to secure its participation. Nevertheless, traditional retailers obtained up to 56% margin by selling single sticks. Waldo and his team rapidly needed to craft a commercial strategy to secure the participation of traditional retailers in a market plagued by informality, smuggling products and lack of control from national authorities.

The case is intended to be used at the early stages of post-graduate studies and in executive education programs addressing issues such as emerging markets, informality, the base of the pyramid, trade marketing and product launches. In particular, the case can be used in MSc in Marketing’s students, first-year MBA students or executives following short courses. The field of studies in which the case should be taught is marketing or trade marketing in particular when analyzing emerging economies.

Teaching notes are available for educators only.

CSS 8: Marketing.

This study aims to draw researchers’ attention to the need to differentiate within the emerging market multinational companies (EMNCs) category. This study focuses on international business in Latin America to argue that the region’s specific institutional characteristics have consequences for within-firm decision-making regarding internationalization strategies. Additionally, the study suggests that to develop a more specific understanding of international business in emerging markets, it is important to consider how decision-makers define value and how they can capture such value.

The approach used in this study draws on the bathtub analogy used in micro-foundations research in international business. It proposes a multilevel analysis in which micro-level variation in within-firm decision-making is considered, while accounting for the conditioning effects of macro-level contextual factors.

The study identifies characteristics of the Latin American institutional context that are relevant to international business strategies and that potentially differ from other emerging market contexts. These include the pendular shifts to and from pro-market economic reform, fragmented government intervention in business, underdeveloped capital markets, low competition among firms and polarized labor markets. The study explains how these characteristics shape the definition of value and firm strategies to capture value in international markets, and provides examples from firms in different industries.

This study applies a value creation and capture perspective to international business in Latin America, allowing for the simultaneous consideration of macrolevel institutional characteristics and microlevel variation in decision-making regarding internationalization strategies. This perspective not only helps to distinguish Latin American EMNCs from companies from other emerging market contexts, but also explains the considerable variation in the internationalization strategies of firms within the region.

This paper aims to use Latin America as a laboratory to better understand the relationship between inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) (both in total as well as in regional flows) and also examine the moderating effect of trade openness on that relationship. Latin America is an ideal study context for this purpose because of the relative homogeneity of its countries, which reduces confounding effects and increases comparability.

This paper uses longitudinal panel regression models with moderation effects. Secondary data were gathered on IFDI (per country and per country-sector), OFDI (total per country and region-targeted per country) and on trade openness from 11 Latin American countries.

IFDI in natural resources is positively associated with OFDI in both overall total flows and regional flows. The effect of IFDI in manufacturing has a consistent negative effect on total OFDI. IFDI in services has positive effects on total OFDI. Additionally, trade openness moderates positively the relationship between total IFDI and both total OFDI and regional OFDI. As a consequence, the authors found evidence suggesting that the relation between IFDI and OFDI in Latin America is positively moderated by trade openness.

The authors explored the nature of the impact of IFDI on the capacity of the recipient country to compete abroad as expressed by its OFDI flows. Specifically, they elucidated whether trade openness can be considered a suitable mechanism for home country firms to leverage potential spillovers provided by foreign entrants.

This study aims to challenge the generic interpretation of Multilatinas as Latin American firms that have been able to internationalize because of highly competitive strategic capabilities. The authors test whether capabilities that international business researchers commonly associate with internationalization are necessary at different stages of the internationalization process to better understand the extent to which emerging market (EM) firms need to develop them.

International business research suggests a positive association between strategic capabilities and firm internalization. However, it remains unclear what specific capabilities are necessary and when they are necessary. These questions are particularly important in the context of the internationalization of firms from emerging economies, such as Latin America. The authors apply necessary condition analysis (NCA) on a sample of Latin American firms at different internationalization stages to test what strategic capabilities represent necessary conditions for becoming a Multilatina.

The findings suggest that only a few strategic capabilities are necessary for Latin American firms to become “Multilatinas”. While entrepreneurial orientation and marketing and sales capabilities represent necessary conditions, EM firms may internationalize even though other capabilities are developed to a lesser extent. The authors reflect on how shifts in local markets and technology drive the emergence of different types of Multilatinas.

Measuring strategic capabilities across multiple EM firms implies a risk that firm-specific aspects are not fully captured. While the authors focused on the comparative competitive strength of capabilities and took great care to minimize measurement error, the authors acknowledge possible bias. Also, while NCA does not require a minimum sample size, findings from our sample of firms from four countries may not generalize to the region or other EMs.

As a relatively new statistical technique, the use of NCA has spread rapidly. To the best of the authors’ knowledge, the linkage between organizational capabilities and firm internationalization has not been tested from a necessary conditions perspective yet. The reflections on the “Multilatina” concept based on the notion of EM firms as configurations of strategic capabilities inform current debates on EM multinational enterprises.

This study aims to propose the roles for business, broadly defined, in government-led programs designed to enhance human capital investment. Through conditional cash transfers (CCTs), businesses have opportunities to alleviate poverty, address the United Nations’ 2030 Agenda (SDGs), enhance CCT viability and explore new market opportunities.

This multifaceted research approach consists of five case studies of CCTs in Latin America, face-to-face field meetings with CCT administrators, 48 CCT beneficiaries in a pilot study and 31 interviews (verbal and remote) with business managers and companies in five countries.

Building on an on-site pilot study, an in-depth appraisal of five CCTs in Latin America over a five-year period, the authors examined six stages of CCT activities to assess possible areas of business engagement. The cases, augmented by field interviews with businesses, present fledgling business engagement in CCTs. In light of anticipated growth in CCTs, this study presents six major ways businesses can further participate in selected stages of CCT operations that contribute to their long-term sustainability, as well as future market opportunities.

Conducted over a five-year period with participants from government, businesses and CCT beneficiaries, this study deepens our understanding of how businesses can alleviate poverty through engaging in government-led antipoverty programs.

Este estudo propõe papéis amplamente definidos para empresas em programas liderados pelo governo projetados para melhorar o investimento em capital humano. Por meio de transferências condicionadas de renda (TCRs), as empresas têm oportunidades de aliviar a pobreza, abordar a Agenda 2030 (ODS) das Nações Unidas, melhorar a viabilidade do transferências condicionadas de renda e explorar novas oportunidades de mercado.

Com base em um estudo piloto no local, uma avaliação aprofundada de cinco transferências condicionadas de renda na América Latina durante um período de cinco anos, identificamos e analisamos seis etapas das atividades da transferências condicionadas de renda para avaliar possíveis áreas de participação empresarial. Nossos cases, enriquecidos por entrevistas de campo com empresas, apresentam oportunidades de participação empresarial em TCRs. À luz do crescimento antecipado dos TCRs, este estudo apresenta seis principais maneiras pelas quais as empresas podem se engajar ainda mais em etapas selecionadas de operações de TCR que contribuem para sua sustentabilidade de longo prazo, bem como oportunidades futuras de mercado.

Utilizamos uma abordagem de pesquisa multifacetada composta por 5 estudos de caso de TCR na América Latina, reuniões presenciais de campo com administradores da TCR, 48 beneficiários da TCR em um estudo piloto e 31 entrevistas (presencial e remota) com gerentes de negócios e empresas em 5 países.

Este estudo foi realizado ao longo de um período de 5 anos com participantes de beneficiários do governo, empresas e transferências condicionadas de renda, e aprofunda a compreensão de como as empresas podem contribuir para o alívio da pobreza por meio da participação em programas de combate à pobreza liderados pelo governo.

Este estudio propone roles para las empresas, ampliamente definidos, en programas dirigidos por el gobierno diseñados para mejorar la inversión en capital humano. A través de las transferencias monetarias condicionadas (TMC), las empresas tienen oportunidades para aliviar la pobreza, abordar la Agenda 2030 (ODS) de las Naciones Unidas, mejorar la viabilidad del TMC y explorar nuevas oportunidades de mercado.

Sobre la base de un estudio piloto in situ, una evaluación en profundidad de cinco TMC en América Latina durante un período de cinco años, identificamos y analizamos seis etapas de las actividades de TMC para evaluar posibles áreas de participación empresarial. Nuestros casos, enriquecidos por entrevistas de campo con empresas, presentan oportunidades para participación empresarial en los TMC. A la luz del crecimiento anticipado en los TMC, este estudio presenta seis formas principales en que las empresas pueden participar aún más en etapas seleccionadas de las operaciones de TMC que contribuyen a su sostenibilidad a largo plazo, así como a las oportunidades futuras del mercado.

Usamos un enfoque de investigación multifacético consiste en 5 estudios de casos de TMC en América Latina, reuniones de campo cara a cara con administradores de TMC, 48 beneficiarios de TMC en un estudio piloto y 31 entrevistas (presenciales y remotas) con gerentes de negocios y empresas en 5 países.

Este estudio fue llevado a cabo en un período de 5 años con participantes del gobierno, las empresas y los beneficiarios de TMC, y profundiza el entendimiento de cómo las empresas pueden contribuir a aliviar la pobreza a través de la participación en programas contra la pobreza liderados por el gobierno.

This paper aims to analyze how emerging market firms upgrade their capabilities by focusing on “uncommoditizing strategies” that enable them to achieve levels of international competitiveness beyond the comparative advantages of their home countries and serve markets with premium pricing, quality and reputation of products.

In this paper, the authors studied 18 Latin American companies across six countries. Latin America represents an ideal setting because many of these countries have traditionally developed using natural resource endowments, and their firms have tended to rely on these in their internationalization. To facilitate the analysis of each case and the comparisons across cases, the authors used the same analytical framework for the companies, identifying the sources of differentiation and cost efficiency strategies that enabled these firms to upgrade their capabilities and compete on the basis of premium pricing, quality and reputation.

The analysis identified a general framework that represents an abstraction of the actions taken by these companies over time. The proposed model consists of three main elements used to pursue uncommoditizing strategies: tropicalized innovation, global efficiency and coordinated control.

Recent research on emerging market firms has shown interest in how these firms upgrade their capabilities. This paper contributes to this stream of research by providing an overarching framework that not only bridged previous narrower studies but also explained how firms can develop uncommoditizing strategies to upgrade their capabilities. Further, this paper helps managers by providing a comprehensive yet succinct overview of the main strategies that they can use to help their firms to achieve international competitiveness.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Firms from emerging markets like Latin America can increase their prospects of successful internationalization through focus on developing and enhancing key strategic capabilities. While entrepreneurial orientation and marketing and sales capabilities are especially important in this regard, ambitious firms should likewise seek to develop various other capabilities to some degree

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format

This study analyzes the impact of intellectual capital on organizational ambidexterity by evaluating the mediating effect of the different types of organizational cultures (adhocracy, clan, market and hierarchy) on the said relationship.

From a sample of 124 directors of Colombian firms, the information is analyzed using Structural Equation Models through the Partial Least Squares method (SEM-PLS).

The results show that intellectual capital has a positive relationship with organizational ambidexterity and that market culture presents a positive mediating effect in the said relationship, while the mediating effects of adhocracy culture, clan culture and hierarchy culture are not significant.

Directors can favor the development of organizational ambidexterity by investing in the intellectual capital of their firms and by promoting the development of market culture attributes.

This work contributes empirical evidence on the mediating role of organizational culture in the relationship between intellectual capital and ambidexterity, highlighting the importance of market culture over other types of culture for the simultaneous development of exploration and exploitation capabilities, in the context of an emerging Latin American economy such as Colombia.

The purpose of this paper is to identify and analyze the strategic decisions, especially those focused on smart governance, that have been implemented by the cities of Buenos Aires (Argentina), Medellín (Colombia) and Mexico City (Mexico) and how they have impacted the Sustainable Development Goals (SDGs).

Using a qualitative approach and a descriptive scope, this manuscript follows a multiple case study methodology that was primarily based on the analysis of archival records and documentation using pattern-matching and cross-case synthesis as analytical techniques.

Observed cities share three main characteristics when implementing smart governance strategies linked to SDG 16: technology-based solutions to solve recent and long-lasting societal problems; broad, diverse and active citizen participation; and a socio-technical approach toward smart governance and SDG 16.

This paper points out the linkages between smart governance and SDGs in emerging markets’ smart cities. The findings of this study indicate the need to promote socio-technical approaches – rather than merely technical perspectives – to achieve SDG 16. Hence, citizen participation, open government and co-creation initiatives are key to the promotion of more inclusive and solid institutions.

The most important contribution of this study is to identify the strategic initiatives developed by three leading smart cities in Latin America from the smart governance point of view and their relationship with the SDGs, which is useful because it contributes to expanding our understanding of smart governance from practical experiences.

El propósito de este manuscrito es identificar y analizar las decisiones estratégicas, especialmente aquellas enfocadas en la gobernanza inteligente, que han sido implementadas por las ciudades de Buenos Aires (Argentina), Medellín (Colombia) y Ciudad de México (México), y cómo han impactado en los Objetivos de Desarrollo Sostenible (ODS).

Utilizando un enfoque cualitativo y un alcance descriptivo, este manuscrito sigue una metodología de estudio de casos múltiples que se basó principalmente en el análisis de registros de archivo y documentación utilizando la comparación de patrones y la síntesis cruzada de casos como técnicas analíticas.

Las ciudades observadas comparten tres características principales al implementar estrategias de gobernanza inteligente vinculadas al ODS 16: soluciones basadas en tecnología para resolver problemas sociales recientes y duraderos; participación ciudadana amplia, diversa y activa; y un enfoque socio-técnico hacia la gobernanza inteligente y el ODS16.

Este documento señala los vínculos entre la gobernanza inteligente y los ODS en el contexto de las ciudades inteligentes de los mercados emergentes. Los hallazgos de este estudio indican la necesidad de promover enfoques sociotécnicos -en lugar de perspectivas meramente técnicas- para el logro del ODS16. Por lo tanto, las iniciativas de participación ciudadana, gobierno abierto y cocreación son claves para la promoción de instituciones más inclusivas y sólidas.

La contribución más importante de este estudio es identificar las iniciativas estratégicas desarrolladas por tres ciudades inteligentes líderes en América Latina desde el punto de vista de la gobernanza inteligente y su relación con los ODS, lo cual es útil porque contribuye a ampliar nuestra comprensión. de gobernanza inteligente a partir de experiencias prácticas.

O objetivo deste manuscrito é identificar e analisar as decisões estratégicas, especialmente aquelas focadas na governança inteligente, que foram implementadas nas cidades de Buenos Aires (Argentina), Medellín (Colômbia) e Cidade do México (México), e como elas impactaram os Objetivos de Desenvolvimento Sustentável (ODS).

Utilizando uma abordagem qualitativa e um escopo descritivo, este manuscrito segue uma metodologia de estudo de casos múltiplos que se baseou principalmente na análise de documentos e registros arquivísticos usando correspondência de padrões e síntese de casos cruzados como técnicas analíticas.

As cidades observadas compartilham três características principais ao implementar estratégias de governança inteligente vinculadas ao ODS16: soluções baseadas na tecnologia para resolver problemas sociais recentes e duradouros; participação cidadã ampla, diversificada e ativa; e uma abordagem sociotécnica para governança inteligente e ODS16.

Este artigo aponta as ligações entre governança inteligente e ODS no contexto das cidades inteligentes dos mercados emergentes. Os resultados deste estudo indicam a necessidade de promover abordagens sociotécnicas – mais do que perspectivas somente técnicas – para o alcance dos ODS16. Assim, a participação cidadã, o governo aberto e as iniciativas de cocriação são fundamentais para a promoção de instituições mais inclusivas e sólidas.

A contribuição mais importante deste estudo é identificar as iniciativas estratégicas desenvolvidas por três cidades inteligentes líderes na América Latina do ponto de vista da governança inteligente e sua relação com os ODS, o que é útil porque contribui para ampliar nosso entendimento de governança inteligente a partir de experiências práticas.