scholarly journals Are Latin American business groups different? An exploratory international political economy perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michael Carney ◽  
Saul Estrin ◽  
Zhixiang Liang ◽  
Daniel Shapiro
Keyword(s):  
Political Economy ◽  
Latin American ◽  
Emerging Economies ◽  
International Political Economy ◽  
Export Performance ◽  
Business Groups ◽  
International Competitiveness ◽  
American Business ◽  
Monroe Doctrine ◽  
Content Type

Purpose This study aims to advance an international political economy (IPE) perspective that geo-political events can have long-lasting imprint effects on countries and their firms. The study also aims to explore the idea that shared political history and geography combine to create specific structural conditions that shape the international competitiveness of all firms in a region. In particular, the authors consider whether the Monroe Doctrine of 1823, which asserted American influence in the Western Hemisphere, contributed to the creation of institutional structures across Latin America (LA) affecting the strategies of all firms to this day. The authors also illustrate the IPE perspective using the example of the contemporary international competitiveness of LA business groups. Design/methodology/approach The authors illustrate the IPE perspective using the example of the contemporary international competitiveness of LA business groups. The exploratory framework of this study leads to a proposition about the export performance of Latin American business group affiliates. The authors use firm-level performance data for 32,000 firms across emerging economies to explore the proposition empirically while controlling for alternative explanations. To do this, the authors draw on the World Bank Economic Surveys. Findings The authors derive a proposition that argues the Monroe Doctrine has had a long-run imprint effect on economic policymaking in LA, resulting in a common, persistent and negative impact on the international competitiveness of firms. The authors find strong and consistent evidence that in terms of export performance, all Latin American firms export less and group affiliates do not outperform independent firms, This finding contrasts with the results for all the other emerging market regions around the world. Research limitations/implications The main contribution of this study has been to suggest the potential importance of shared regional geopolitical history and geography in explaining firm-level outcomes. However, this study is preliminary and introductory, although the authors seek to control for alternative country-specific explanations of the results. The analysis considers the effects of one particular IPE phenomenon, the Monroe Doctrine, in one particular location: LA. Future work should seek to contrast LA with other geopolitical security and alternative IPE structures. They might also address the time dimension from a historical perspective: is imprinting in LA driven by the length of the Monroe Doctrine arrangements? Practical implications The most important managerial learning point concerns the relevance of geography and political economy factors for multinational enterprises strategy formation. There is widespread understanding that context is an important determinant of subsidiaries’ performance, and that strategies need to be constructed to take account of country-specific characteristics, most importantly, in emerging economies and institutional arrangements. This paper proposes that managers also need to take account of IPE structures, including security arrangements, and to consider the resulting regional as well as national context. Social implications The analysis suggests that not only the performance of firms, including emblematic firms, but also the socially beneficial spillovers that might be generated from them, are contingent on the regional as well as national characteristics. Thus, business groups in most emerging economies are found to yield better performance and to provide higher levels of social impact, including concerning ESG goals. However, the findings of this study suggest that the former is not true for LA, which, the authors argue, is a consequence of imprinting as a result of the Monroe Doctrine. Further work is needed to establish whether the latter effect is also not true, but if that is the case, then regionally specific policies may be required to address the resulting corporate social shortfalls. Originality/value The core idea is that geo-political events can have long-lasting imprint effects on countries and their firms: that shared political history and geography create specific structural conditions that shape the international competitiveness of all firms in a region. The authors explore this concept with reference to the Monroe Doctrine, asking whether its assertion of US influence across the Americas contributed to the creation of institutional structures across LA affecting the strategies of all firms to this day.

The cooperation mechanisms of trade associations

2018 ◽  
Vol 31 (4) ◽  
pp. 701-718 ◽  
Author(s):  
Jose Brache
Keyword(s):  
Latin American ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Contextual Factors ◽  
Export Performance ◽  
Multiple Streams ◽  
Trade Associations ◽  
Policy Makers ◽  
Content Type ◽  
Medium Enterprises

Purpose The purpose of this paper is to propose a conceptual model that portrays how contextual factors and behavioural cooperation mechanisms influence the effect of trade associations on the export performance of small and medium enterprises (SMEs) in a Latin American emerging economy. Design/methodology/approach The author draws on multiple streams of literature including: co-location, networks, cooperation and export performance to suggest a series of solid theoretical insights to the literature on SMEs’ export performance, networks and co-location in the Latin American context. Findings Contextual factors and behavioural cooperation mechanisms influence the effect of trade associations on export performance determining the final sign of such effect. Trust plays a role within all proposed mechanisms, but is not as fundamental as previously characterised in studies on the export performance of SMEs. Cooperation might exist, prevail, and exert a positive impact on SMEs’ export performance even in the absence of trust. Originality/value This paper contributes to the literature on SMEs’ export performance, networks and co-location in the Latin American context by presenting a theoretical model that enfolds co-location, networks, trade associations and cooperation effects on SMEs’ export performance under the same foundation. It creates the categories of “contextual factors” and “behavioural cooperation mechanisms” to differentiate the elements that weight on the relationship between firms and trade associations, thus facilitating or hindering export performance. It guides policy makers and company managers on where to focus when incentivizing conduct towards a more productive export performance in Latin America and other emerging economies.

Are KIBS beneficial to international business performance

2017 ◽  
Vol 27 (1) ◽  
pp. 80-95 ◽  
Author(s):  
Bart Kamp ◽  
Iñigo Ruiz de Apodaca
Keyword(s):  
International Business ◽  
Business Performance ◽  
Export Performance ◽  
International Competitiveness ◽  
Content Type ◽  
Industrial Policies ◽  
Industrial Sectors ◽  
Manufacturing Sectors ◽  
Knowledge Intensive ◽  
Business Competitiveness

Purpose The purpose of this paper is to test whether knowledge-intensive business services (KIBSs) contribute to international business activity. In line with studies from the servitization, the territorial competitiveness and the global value chain realm, it can be hypothesized that if KIBS consumption has a positive effect on business competitiveness, a correlation is discernible between “intensity of KIBS uptake” and “turnover and export performance at industrial sector level”. Design/methodology/approach To test this hypothesis, the authors make use of input-output tables from the Basque Country for the period 2000-2012 and regional accounts regarding turnover and export per sector and calculate how consumption of a series of KIBS correlates with turnover and export evolution for 14 industrial sectors. Findings The authors find a strong fit between consumption of KIBSs and international competitiveness parameters for the industrial sectors screened. Research limitations/implications The authors postulate that the use of KIBS is beneficial for consuming industries. Accordingly, the authors posit that having a sound KIBS basis in a territory contributes to (international) business competitiveness, and that industrial policies should foster the rapprochement of manufacturing sectors to KIBS. At the same time, the authors assume that reverse causalities may be at play (international competitiveness of manufacturing sectors boosts KIBS consumption through backward linkage effects). Practical implications The paper posits that having a sound KIBS basis in a territory contributes to international business competitiveness, and that industrial policies should foster a rapprochement of manufacturing sectors to KIBS. A further implication would be to look after a minimum critical mass and or to engage in KIBS capacity building in a territory. Absence of competitiveness-enhancing KIBS in a region may hamper business performance and staying power of user industries. The paper’s findings also imply that the posture of manufacturing firms towards uptake of knowledge-intensive services matters, and that fostering their proactiveness to interact with KIBS is indicated. Similarly, they form an argument in favour of considering KIBS as active subject matters for industrial policy design. Originality/value Amidst the several perspectives adopted upon KIBS’ role to foster business and territorial competitiveness, what is largely absent is the examination of how uptake of KIBS by respective sectors relates to the turnover or export evolutions that the sectors in question reveal. Consequently, the present paper sets out to examine this research question.

Latin American firms may struggle globally

2016 ◽  
Keyword(s):  
Emerging Markets ◽  
Latin American ◽  
Business Groups ◽  
Commodity Price ◽  
Institutional Characteristics ◽  
Content Type ◽  
Price Fluctuations ◽  
Technology Firms ◽  
The Past ◽  
Success Stories

Subject The expansion of multilatinas. Significance Latin American multinationals (known as 'multilatinas') have gained increasing attention over the past decade, with a number of notable success stories. Nonetheless, many such firms have struggled to internationalise beyond the region, while state-owned multinationals are vulnerable to commodity price fluctuations and political instability. Impacts Family-controlled business groups will prefer to operate in markets with similar institutional characteristics to their home countries. State-controlled firms will retain their international presence, but their fortunes will depend on conditions in their home countries. Technology firms will often internationalise relatively quickly, but generally to other emerging markets.

The investment attributes of Mexico REITs as a listed property investment vehicle

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Jufri Marzuki ◽  
Graeme Newell
Keyword(s):  
Latin American ◽  
Emerging Economies ◽  
Portfolio Optimisation ◽  
Portfolio Risk ◽  
Property Market ◽  
Content Type ◽  
Risk Return ◽  
Latin American Region ◽  
The World ◽  
Asset Portfolio

PurposeMexico REITs are a significant and important REIT market, both in a regional and in emerging property market context. As one of the few emerging economies in the world with an active REIT market, Mexico REITs are specifically designed to provide an effective pathway to participate in the investment opportunities offered by the Mexico commercial property market for both domestic and international investors. Importantly, Mexico REITs provide additional property investment benefits such as a high degree of transparency, governance and liquidity. The main focus of this research is to highlight the significance of Mexico REITs and assess their performance dynamics, as well as the added-value benefits of Mexico REITs in mixed-asset investment portfolios.Design/methodology/approachUsing monthly total returns, the risk-adjusted performance and portfolio diversification potential of Mexico REITs over April 2011–December 2019 were assessed. A constrained mean-variance portfolio optimisation framework was used to develop a three-asset portfolio scenario using the historical returns, risk and correlation of Mexico REITs and the other two major financial assets.FindingsDespite being more volatile than the mainstream asset classes, Mexico REITs delivered the strongest risk-adjusted performance versus stocks and bonds over April 2011–December 2019, which was made possible by the high premium of their total return performance. Notably, Mexico REITs offered excellent diversification potential with bonds, whilst demonstrating a marginal positive correlation with the stock market. These investment attributes of Mexico REITs have brought immediate benefits towards their ability to add value to the Mexico mixed-asset portfolio fabric across a wide portfolio risk–return spectrum.Practical implicationsWhilst their initial establishment in 2004 was considered unsuccessful, the ongoing regulatory improvements have been pivotal in providing a supportive investment environment to nurture the organic growth of Mexico REITs. This now sees the Mexico REIT market as an exemplar of success for REIT establishments amongst its peers in the Latin American region, as well as for emerging economies worldwide. Mexico REITs are now an important REIT market, as the second largest emerging REIT market in the world. The empirical investigation of this research has established the investment attributes of Mexico REITs as a listed property investment vehicle. The strong risk-adjusted performance of Mexico REITs compared to stocks and bonds sees Mexico REITs contributing to the mixed-asset portfolio across the portfolio risk–return spectrum. This is particularly important as it provides insights into the broader strategic implications of Mexico REITs as an effective, transparent and tax-efficient conduit for high-quality Latin American property exposure in a liquid format.Originality/valueThis paper is the first published empirical research that elucidates the investment attributes of Mexico REITs, highlighting their significance, risk-adjusted and portfolio performance enhancement role as an emerging REIT market. The main outcome of this research enables empirically validated, more informed and practical property investment decision-making regarding the strategic role of Mexico REITs in an investment portfolio.

The microfoundations of innovation processes in Latin American firms

2019 ◽  
Vol 33 (2) ◽  
pp. 199-218
Author(s):  
Jose Ignacio Barrera ◽  
Juan Pablo Torres ◽  
Gonzalo Valdés
Keyword(s):  
Latin American ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
American Business ◽  
Sampling Frame ◽  
Content Type ◽  
Confirmatory Factor ◽  
Latin American Countries ◽  
Linear Regressions ◽  
Innovation Processes

Purpose The purpose of this paper is to explore the microfoundations of innovation-enabling dynamic capabilities in Latin American firms and, in particular, their processes to: sense and shape opportunities; seize opportunities; and maintain competitiveness through reconfiguring assets. Design/methodology/approach The authors carried out a confirmatory factor analysis of survey data obtained from a sample of 721 firms located in Latin America, and employed a hierarchical analysis of linear regressions with robust standard errors to test the hypotheses. Findings The authors found that when firms manage their innovation processes based on sensing opportunities and reconfiguring their tangible and intangible assets, they are more likely to improve on four innovation-related outcomes: development of new products and services; profitability; market share; and diversification. Research limitations/implications The findings are limited to the specific context of Latin American countries. In particular, the authors took a random sample of firms from a business directory built by prestigious Latin American business schools, but that may not be representative. Therefore, the generalizability of the results is limited beyond the type of companies that are represented in that sampling frame. Originality/value Contributions are twofold. First, the authors test the applicability of an orchestration model of dynamic capabilities to the Latin American context. And, second, the authors relate specific microfoundations of dynamic capabilities to the ability of firms to innovate successfully.

The international political economy of worker satisfaction: a cross-national HLM analysis

2016 ◽  
Vol 4 (2) ◽  
pp. 116-143 ◽  
Author(s):  
Jonathan H. Westover
Keyword(s):  
Job Satisfaction ◽  
Political Economy ◽  
International Political Economy ◽  
Work Characteristics ◽  
Content Type ◽  
Country Level ◽  
Study Results ◽  
Worker Satisfaction ◽  
Country Differences ◽  
Cross National

Purpose – There is a growing body of comparative research examining country differences in job satisfaction and its determinants. However, existing research cannot explain similarities in job satisfaction levels across very different countries, nor can it explain the differences between seemingly similar countries. Moreover, there has been no significant research conducted to date that has examined the country-level contextual conditions that are poised to impact worker satisfaction and its determinants. The paper aims to discuss these issues. Design/methodology/approach – In this research, the author address this existing gap in the academic literature on job satisfaction by using non-panel longitudinal data from the International Social Survey Program (Work Orientations I, II, and III: 1989, 1997, and 2005) to examine cross-national differences in job satisfaction and its determinants. The author compare and combine previous international political economy theoretical work and hierarchical linear modeling (HLM) to examine global macro-level variables and their impact on worker satisfaction cross-nationally. Findings – Study results demonstrate that both intrinsic and extrinsic work characteristics strongly impact worker job satisfaction. Furthermore, country by country regression and HLM results suggest that there are important country differences in both the perceived importance of various work characteristics and workers’ self-report experiences with both intrinsic and extrinsic work characteristics. Research limitations/implications – To get a clearer picture in the HLM analysis as to the full impact of these various country-contextual impacts on differences in perceived job characteristics and worker satisfaction, future research needs to examine a greater number and wider variety of countries, while exploring other theoretically relevant country-level variables that may help to explore country-level differences from these various cross-national theoretical frameworks. Additionally, a more diverse and greater number of participating countries would also potentially help in achieving levels of significance in the level-2 covariates in the HLM models. Practical implications – Due to the fact the worker job satisfaction impacts firm performance and various measures of worker well-being, firms (regardless of economic sector or private/public status) need to be cognizant of these differences and unique challenges and work to tailor management philosophy and policy to create a unique work atmosphere that will benefit the interests of both the employer and the employee, as well as society at large. Originality/value – While the nature of work has changed dramatically in the post-war era in response to economic shifts and an increasingly global economy, particularly over the past two decades, this paper examines the previously unexamined country-level contextual and global macro-historical variables driving differences in work quality and perceived worker satisfaction.

scholarly journals From Latin American International Political Economy to Latin American Global Political Economy

2021 ◽  
Vol 9 (2) ◽  
pp. 7-33
Author(s):  
Ernesto Vivares ◽  
Raúl Salgado Espinoza
Keyword(s):  
Political Economy ◽  
International Relations ◽  
Latin American ◽  
Doctoral Programs ◽  
International Political Economy ◽  
World Order ◽  
Structured Interviews ◽  
Global Political Economy ◽  
Sociological Approach ◽  
Global Challenges

This paper focuses on the differences between International Political Economy (IPE) versus Global Political Economy (GPE) in Latin America. It explores how IPE tends to be taught and researched beyond mainstream IPE but in dialogue with it. It engages with the main literature of this field to discuss the contours and extension of a transition in teaching and research. It rests upon a historical sociological approach and employs a qualitative analysis of syllabi and curricula of various masters and doctoral programs on International Relations/Studies and underlying disciplines, and is complemented with semi-structured interviews with leading scholars of IPE from across the region. The paper argues that there is a shift from mainstream IPE to a new Latin American GPE as the result of a revitalization of the field and as a response to the new regional and global challenges. New dynamics of development, conflict and a changing world order coexist with old problems, pushing our field to find new responses, demonstrating the limits of the traditional knowledge, and requiring the development of new contributions. While the shift may be minor, it is constant and steady, and is neither homogenous nor dominated by a unique vision of the field, but it is defined by heterogeneity and plurality.

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