Internationalization of Mexican family firms: the cases of Xignux and Grupo Alfa

2017 ◽  
Vol 27 (2) ◽  
pp. 180-198 ◽  
Author(s):  
Juan Velez-Ocampo ◽  
Karthik Govindan ◽  
Maria Alejandra Gonzalez-Perez
Keyword(s):  
Latin American ◽  
Strategic Alliances ◽  
Family Firms ◽  
Organizational Capabilities ◽  
International Expansion ◽  
Theoretical Understanding ◽  
Case Study Methodology ◽  
Content Type ◽  
Internationalization Strategies ◽  
Mexican Family

Purpose This theory testing paper compares and analyzes the internationalization process of two Mexican family-owned firms: Xignux and Grupo Alfa. This paper is intended to offer a theoretical understanding using existing frameworks such as OLI (ownership, location and internationalization), LLL (linkage, leverage and learning) and the Uppsala model. Furthermore, it tests whether the theoretical framework of organizational capabilities and international ventures fits the internationalization of these companies. Design/methodology/approach This paper is based on case study methodology using the companies’ publically available data. Both within-case and cross-case analysis were carried out to identify specific traits in the internationalization pattern of both firms; cases were also compared with literature to identify conflicts and similarities that enable a better understanding of the phenomenon. Findings It was found that not a single theory fully and satisfactorily explains the internationalization of both Xignux and Alfa, instead, issues like internationalization into low psychic distance countries, establishment of strategic alliances and the exploitation of locational-specific advantages contributed in the international expansion of the studied companies. Originality/value There is an increasing amount of available literature regarding internationalization strategies and internationalization theories applied to developing and emerging country firms. However, most of the studies analyze companies from Asia, and there are limited studies on multilatinas (i.e. Latin American multinationals). Furthermore, scholars in the field of international business are still debating whether the existing theories, or an adaptation of them, explain the internationalization of multilatinas.

Internationalization of emerging multinationals: the Latin American case

2014 ◽  
Vol 26 (6) ◽  
pp. 588-602 ◽  
Author(s):  
Mauricio Losada-Otálora ◽  
Lourdes Casanova
Keyword(s):  
Latin American ◽  
Global Economy ◽  
Secondary Data ◽  
Developed Countries ◽  
Analytical Framework ◽  
Content Type ◽  
Emerging Multinationals ◽  
Internationalization Strategies ◽  
American Case ◽  
Key Resources

Purpose – The purpose of this paper is to develop an analytical framework that challenges the condescending view of multinationals of emerging countries. In this paper, it is showed that emerging multinational companies (EMNCs) developed valuable resources that leveraged their internationalization strategies. Design/methodology/approach – An exploratory approach was used to investigate the internationalization strategies of EMNCs. A qualitative study was built on secondary data sources, particularly analysis of cases of the internationalization of Latin American companies. Findings – The internationalization strategies deployed by EMNCs are similar to the strategies of traditional multinationals (firms of developed countries). Similarly, EMNCs exploit, acquire or defend their resources in foreign markets. Additionally, the selection of each strategy depends on the availability, transferability and substitutability of the resources involved in the internationalization. Research limitations/implications – The traditional approaches that study the role of resources in the internationalization of the EMNCs have some shortcomings. It is worth conducting additional research including the approach developed here to advance in the comprehension of the behavior of EMNCs. Practical implications – Managers must identify and develop key resources to invest abroad. Additionally, managers need to take into account the characteristics of the resources of their firms to select an adequate strategy abroad. Originality/value – This paper shows that EMNCs are not resource laggards. Consequently, theoretical and empirical evidence is provided to advance the development of comprehensive theories of the internationalization of EMNCs. This paper offers academics and practitioners with a new focus to analyze the internationalization of EMNCs which are recognized as a driving force of the global economy.

Family firm CEOs: human capital and career success

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Rita Blanco ◽  
Miguel Angel Sastre-Castillo ◽  
Maria Angeles Montoro-Sanchez
Keyword(s):  
Human Capital ◽  
Latin American ◽  
Quantitative Methods ◽  
Family Firms ◽  
Family Firm ◽  
American Family ◽  
Graduate Degree ◽  
Capital Theory ◽  
Content Type ◽  
The Way

PurposeThis article explores the influence of education and experience on the time to the top in family and non-family CEOs who work for Latin American family firms.Design/methodology/approachIn order to achieve these objectives, this study draws upon human capital theory as well as career and family firm literature. The careers of 129 CEOs of family firms who form part of the América Economía ranking were analyzed and quantitative methods were used.FindingsIn Latin American family firms, family CEOs reach the top faster than their non-family counterparts. In addition, the influence of human capital variables on the way to the top differs between the two groups. For family CEOs, obtaining a graduate degree delays the way to the top, while for non-family ones, it reduces the time to the top. As regards experience, for promoted family CEOs, the greater the percentage of the career spent in the organization they lead, the shorter the time to the top. No support was found for either the influence of having worked for just one firm or having had elite graduate education abroad, in multilatina CEOs.Practical implicationsIndividual career management suggestions for future CEOs as well as specific guidelines for talent managers are proposedOriginality/valueThis is the first study to explore the influence of human capital indicators on the time to the top in Latin American family firm CEOs.

Data Mining for Internationalization

2011 ◽  
pp. 424-430
Author(s):  
Luciana Dalla Valle
Keyword(s):  
Data Mining ◽  
Strategic Alliances ◽  
Foreign Market ◽  
Foreign Direct Investments ◽  
International Expansion ◽  
Multivariate Statistical ◽  
International Firms ◽  
Large Databases ◽  
Internationalization Strategies ◽  
And Control

The term “internationalization” refers to the process of international expansion of firms realized through different mechanisms such as export, strategic alliances and foreign direct investments. The process of internationalization has recently received increasing attention mainly because it is at the very heart of the globalization phenomenon. Through internationalization firms strive to improve their profitability, coming across new opportunities but also facing new risks. Research in this field mainly focuses on the determinants of a firms’ performance, in order to identify the best entry mode for a foreign market, the most promising locations and the international factors that explain an international firms’ performance. In this way, scholars try to identify the best combination of firms’ resources and location in order to maximize profit and control for risks (for a review of the studies on the impact of internationalization on performance see Contractor et al., 2003). The opportunity to use large databases on firms’ international expansion has raised the interesting question concerning the main data mining tools that can be applied in order to define the best possible internationalization strategies. The aim of this paper is to discuss the most important statistical techniques that have been implemented to show the relationship among firm performance and its determinants. These methods belong to the family of multivariate statistical methods and can be grouped into Regression Models and Causal Models. The former are more common and easy to interpret, but they can only describe direct relationships among variables; the latter have been used less frequently, but their complexity allows us to identify important causal structures, that otherwise would be hidden.

International expansion for knowledge acquisition or knowledge acquisition for international expansion?

2019 ◽  
Vol 28 (2) ◽  
pp. 177-200 ◽  
Author(s):  
Clarice Secches Kogut ◽  
Renato Dourado Cotta de Mello ◽  
Angela da Rocha
Keyword(s):  
Knowledge Acquisition ◽  
Latin American ◽  
Multinational Enterprises ◽  
Longitudinal Design ◽  
Emerging Market ◽  
Theoretical Perspective ◽  
Multinational Firm ◽  
International Expansion ◽  
Content Type ◽  
Catch Up

Purpose Starting from the knowledge-based view as a theoretical perspective, this study aims to examine how an emerging market multinational enterprise (EMMNE) engages in reverse knowledge transfer (RKT) processes and how such processes are managed by headquarters. Therefore, this paper captures the perspective of top management concerning RKT and the processes used to create, transfer and integrate knowledge. Design/methodology/approach The study uses a longitudinal design based on the case method of investigation. The case selected for the study was a Brazilian company theoretically sampled for being a domestically, regionally and globally important, information-rich company that operates in an industry in which technology plays a crucial role. The company was also selected for having had asset-seeking motives in at least some of its foreign market entries and for having successfully absorbed foreign-acquired capabilities. Findings The study provides counterfactual evidence to the springboard perspective, considering timing and speed of the internationalization and catch-up processes and the size of acquisitions. The study also highlights differences to other emerging market multinational enterprises, concerning the internationalization trajectory and catch-up moves, and to traditional MNEs, regarding RKT challenges and practices. Research limitations/implications The main limitations of the study relate to the case study method, which does not allow for statistical generalization, although it does support analytical generalization. Originality/value The study contributes to the literature by shedding light on the process by which a Latin American multinational firm developed technological capabilities to compete globally, focusing on the symbiotic, self-nurturing relationship between internationalization processes and technology acquisition and integration processes. Moreover, the work provides novel theoretical insights regarding timing, location, size and execution of the RKT activities. Finally, the paper contributes to the understanding of the relational aspects of the RKT process by focusing on building human relationships as the major force behind knowledge integration and examining the resistance of the acquired companies from developed markets to adopt the parent company’s best practices, or to contribute to its integrated knowledge, when the parent company is an EMMNE.

A value creation perspective on international business in Latin America: directions for differentiation between emerging market multinationals

2020 ◽  
Vol 28 (2) ◽  
pp. 157-175 ◽  
Author(s):  
Michel Hermans ◽  
Armando Borda Reyes
Keyword(s):  
Decision Making ◽  
Latin America ◽  
International Business ◽  
Latin American ◽  
Value Creation ◽  
Emerging Market ◽  
Institutional Characteristics ◽  
Content Type ◽  
A Value ◽  
Internationalization Strategies

Purpose 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. Design/methodology/approach 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. Findings 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. Originality/value 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.

GranuLab (C): internationalizing GranuMaS

2012 ◽  
Vol 2 (8) ◽  
pp. 1-15 ◽  
Author(s):  
Khairul Akmaliah Adham ◽  
Mohd Fuaad Said ◽  
Nur Sa'adah Muhamad ◽  
Saida Farhanah Sarkam ◽  
Zizah Che Senik ◽  
...  
Keyword(s):  
Strategic Management ◽  
Medical Device ◽  
International Business ◽  
Latin American ◽  
High Growth ◽  
Capital City ◽  
Content Type ◽  
Manufacturing Facility ◽  
Internationalization Strategies ◽  
Medical Device Company

Subject area The area of focus is on internationalization strategies, specifically on developing suitable strategies to support an internationalization initiative of a new medical device company. Study level/applicability This case is designed for final year undergraduate and MBA students. It is suitable for courses of organizational management, organization theory and design, strategic management, and international business as well as international marketing. Case overview GranuLab, a medical device company that produced the synthetic bone graft substitute GranuMaS, aspired to be a high-growth company. To achieve this aspiration the company had made plans for internationalization, which include penetrating the ASEAN, Middle East, Latin American, and African markets within the next five years. By December 2010, GranuLab had completed the construction of its new manufacturing facility in Shah Alam, about 30km from Malaysia's capital city of Kuala Lumpur. This manufacturing facility had the capability to produce high volumes to support the company's high growth plan. However, the company's internationalization processes had taken longer than expected and this has led to a low business volume. By mid-2012, the company was forced to make a quick decision as it had suffered a year and a half of operations losses. GranuLab had to formulate a strategy as to how to position GranuMaS and penetrate the targeted markets. Failure to internationalize would incur even greater losses and might hinder the achievement of its high growth aspiration by 2015. Expected learning outcomes This case is designed to stimulate case analysts' thinking into providing recommendations for the appropriate internationalization strategies to be adopted by the management team to ensure that the company could succeed in achieving its goals. The case will expose students to the concepts and theories of strategic management, international business, international entrepreneurship; and facilitate the development of students' abilities to apply those concepts in managerial situations. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

What hampers innovation in Mexican family firms?

2016 ◽  
Vol 29 (3) ◽  
pp. 255-278 ◽  
Author(s):  
María Concepción López-Fernández ◽  
Ana María Serrano-Bedia ◽  
Manuel Palma-Ruiz
Keyword(s):  
Latin America ◽  
Family Business ◽  
Family Firms ◽  
Management Control ◽  
Innovation Activity ◽  
Family Management ◽  
Content Type ◽  
The Family ◽  
Mexican Family ◽  
Market Factors

Purpose The purpose of this paper is to explore to what extent different obstacles (financial, knowledge, market, and perception) affect the propensity of Mexican family firms to engage in innovation activity. Second, it examines whether the perception of these obstacles differs between two subgroups of family firms, considering levels of ownership and family management control. Design/methodology/approach Information was gathered through a CIS methodology-based questionnaire applied to 161 CEOs of Mexican family firms. Binomial logistic regressions were performed identifying obstacles that were truly relevant for the family firm subgroups in the sample. Findings For subgroup 1, knowledge and market factors were significant and negatively related to the propensity to engage in innovation activities; for subgroup 2, only market factors were relevant. The results also show how the tenure of the CEO, the number of generations involved, and the family involvement in management and non-management positions affect the results obtained. Practical implications Implications for family business scholars embrace the assessment criteria of different family business definitions. While the implications for managers and policy makers include the recognition of the factors that affect innovation in Mexican family firms in order to design and implement adequate strategies to overcome them. Originality/value This study addresses some of the raised demands in the literature. First, to the best of the authors’ knowledge, it is the first attempt to explore the factors hampering innovation in family firms in Latin America. Second, this study was undertaken in response to the call for exploring variations in innovation behavior across different family business types in regards to ownership and family management control. Moreover, this study responds to the call to analyze financial and non-financial factors separately and to expand the geographical areas, sectors, and sizes of family firms, more specifically in Latin America.

scholarly journals Internacionalización en el sector aéreo de América Latina: estudio multicaso de Aeroméxico, Avianca y Latam (Internationalization in the Latin American air sector: multi- case study of Aeromexico, Avianca and Latam)

2019 ◽  
Vol 15 (30) ◽  
Author(s):  
Jose Satsumi Lopez ◽  
Mauricio Alejandro Montañez Cuevas ◽  
Jorge Antonio Zertuche Zertuche ◽  
Daniel Gregorio Paez Aguirre ◽  
Alejandro Martinez Cespedes
Keyword(s):  
Latin America ◽  
Latin American ◽  
Strategic Alliances ◽  
Airline Industry ◽  
Research Question ◽  
Domestic Market ◽  
Internationalization Strategies ◽  
America Latina ◽  
Sobre Todo

Abstract. The objective of this paper is to analyze the internationalization strategies of the Latin American airlines: Aeromexico (Mexico), Avianca (Colombia) and LATAM (Chile). For this, a qualitative multi-case study technique was applied. The research question that is intended to answer in this paper is: in what way are the main airlines in Latin America internationalized? The results suggest that the airlines studied use similar internationalization strategies, which are based on strategic alliances with other airlines in order to offer a better service to their passengers. They were also identified as the main characteristics of these airlines that are strong in their domestic market (especially Aeromexico) and then they start to expand their operations abroad. Likewise, Avianca and LATAM have the main market in Latin America, while Aeromexico has a greater presence in the United States.Key words: Aeromexico, airline industry, Avianca, internationalization, LATAM, service sectorJEL: F23, M16.Resumen. El objetivo de este trabajo es analizar las estrategias de internacionalización de las aerolíneas latinoamericanas Aeroméxico (México), Avianca (Colombia) y LATAM (Chile). Para esto se aplicó una técnica cualitativa de  estudio multi-caso. La pregunta de investigación que se pretende responder en este trabajo es ¿de qué manera se internacionalizan las principales aerolíneas en América Latina?. Los resultados sugieren que las aerolíneas estudiadas utilizan estrategias similares de internacionalización, las cuáles están basadas en alianzas estratégicas con otras aerolíneas para poder ofrecer un mejor servicio a sus pasajeros. Además fueron identificadas como principales características de estas aerolíneas que son fuertes en su mercado interno (sobre todo Aeroméxico) y de ahí parten para poder expandir sus operaciones hacía el exterior. Asimismo Avianca y LATAM tiene como principal mercado América Latina, en cambio Aeroméxico tiene una mayor presencia en Estados Unidos.Palabras clave: Aeroméxico, Avianca, internacionalización, LATAM, sector aéreo, sector servicios

The international profile of the firm

2019 ◽  
Vol 32 (3) ◽  
pp. 392-410
Author(s):  
Luz-Dary Botero-Pinzón ◽  
Jose C. Casillas ◽  
Marisol Valencia-Cárdenas
Keyword(s):  
Latin American ◽  
Latent Variables ◽  
Latent Variable ◽  
Statistical Technique ◽  
Structural Equations ◽  
International Expansion ◽  
Content Type ◽  
Latent Variable Analysis ◽  
Four Levels ◽  
And Cluster Analysis

Purpose The purpose of this paper is to design a system for measuring the level of internationalisation of companies in the field of developing countries, through latent variables based on multiple indicators, external and internal orientation. Design/methodology/approach From a sample of 112 international companies in Colombia, the methodology of latent variable analysis (LPA) is applied to a series of complementary tools, such as a model of structural equations, regression models and cluster analysis of companies. Findings The paper allows to verify the identification of six latent variables and their relationships, as well as to identify four levels of internationalisation from the structure of latent variables identified. Originality/value This is the first application of this recent and sophisticated statistical technique to the field of measuring the level of business internationalisation, especially indicated in the Latin American area, where an increasing number of companies are advancing in their process of international expansion.

Institutional framework, concentration of ownership and results of large family corporations in Latin America and Spain

2015 ◽  
Vol 15 (4) ◽  
pp. 409-426 ◽  
Author(s):  
Carmen Galve-Górriz ◽  
Alejandro Hernández-Trasobares
Keyword(s):  
Latin American ◽  
Family Firms ◽  
Large Family ◽  
Ordinary Least Squares ◽  
Institutional Framework ◽  
Average Quality ◽  
Content Type ◽  
Regulatory Frameworks ◽  
Two Samples ◽  
Latin American Countries

Purpose – This paper aims to clarify the relationship between institutional framework, concentration of ownership in family firms and results. Design/methodology/approach – Data comprises two samples of family firms from eight Latin American countries and Spain in the year 2010. The first sample contains the largest 20 corporations from each country. The second comprises the 20 largest listed family corporations in each country. To test the hypothesis, the study uses ordinary least squares. Findings – First, firms located in countries with a higher than average quality of the institutional and regulatory frameworks are less concentrated in ownership than firms located in countries with lower than average quality and development of institutional and regulatory framework. Second, the influence of the concentration of the ownership in the performance is more important in countries with higher developed institutional and regulatory frameworks. Finally, first-generation large family firms obtain higher results than large family firms in second generation or beyond. Research limitations/implications – The study is limited to one year and there are few family firms in Latin American countries. The study only considers some features of ownership, and there is no information about board of directors ' composition. Practical implications – Institutional framework determines concentration of ownership in family firms and the influence of concentration of ownership in performance. Originality/value – The study provides new evidence in areas of corporate governance and family firms, analysing a sample of Latin American and Spanish firms, representatives of the civil legal system and a weaker institutional framework. The study uses the corruption perception index like a control variable.

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