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- Correa da Cunha, Henrique, et al.
(author)
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Are we talking about country profile or distance?
- 2019
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In: Balancing Globalization & Local Priorities.
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Conference paper (peer-reviewed)abstract
- Since its introduction in International Business research, Distance has been an important topic but recently there is an ever growing concern related to the country profile and distance conflation. Studies investigating the implications of distances should include a sufficiently diversified sample. In order to provide adequate assessments for the implications of country profiles and distances, it is essential to consider that firms may be affected in different ways depending on the direction of the distances. We argue that the asymmetric effects of distances might result not only from the ability of foreign subsidiary firms adapting to the host country’ conditions, but also on the characteristics of the host country environment that may be more or less receptive to foreign firms’ operations. We test these assumptions in Latin America due to its diversity in terms of cultural and formal institutional conditions and also because it includes a great number of emerging market and developed country foreign subsidiaries. Data comes from Orbis database, totaling 1466 subsidiary firms being 1216 from developed countries and 250 from emerging markets operating in 10 host countries in Latin America and a combination of 168 different home and host countries over a period of 3 consecutive years ranging from 2013 to 2015. By measuring distances in opposite directions independently we are able to verify the asymmetric effects of both Cultural and Formal Institutional Distances. Additionally, results show that the expertise in dealing with formal institutional conditions at the home country can be converted more easily into firm specific advantages in foreign host countries whereas cultural distances seem to affect firms in similar ways, depending more on the cultural characteristics at the host country than by the distances between home and the host countries.
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2. |
- Correa da Cunha, Henrique, et al.
(author)
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Institutional Distance Moderating Effects on Cultural Distance and Performance Relationship : Asymmetry of Distance and the Case of Foreign Multinational Subsidiaries in Latin America
- 2019
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In: International Business in an Unsettling Political and Economic Environment, Copenhagen, Denmark, June 24-17, 2019.
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Conference paper (peer-reviewed)abstract
- We investigate how Cultural and Formal Institutional distances affect the performance of foreign multinational subsidiaries in Latin America. We measure distance in opposite directions separately in a way that allows verifying its asymmetrical properties. Data is from Orbis database and includes 1466 foreign subsidiaries and 168 combinations of home and host countries for a period ranging from 2013 to 2015. Findings reveal that not all formal institutional distances affect the performance of developed country subsidiaries in a negative manner when operating in less developed countries as these firms know how to interpret and respond to different regulatory quality conditions in the host countries. We show that Latin American firms are in advantage dealing with formal institutional distances while they are affected in the same manner by cultural distances when compared to emerging market firms from outside Latin America. Subsidiaries from emerging markets are affected in a positive manner when operating in less developed countries and in a negative way when in more developed host countries. Results show that formal institutional distances may be easier to convert into firm specific advantages when compared to cultural distances. Formal institutional distances moderate in a positive manner the relationship between cultural distance and performance.
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- Floriani, Dinora Eilete, et al.
(author)
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Speed and longevity : Elements of the internationalization of technology-based firms
- 2023
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In: Brazilian Business Review. - Vitoria : FUCAPE Business School. - 1808-2386. ; 20:5, s. 540-560
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Journal article (peer-reviewed)abstract
- Is time perception an idiosyncratic element in the internationalization process of technology-based firms (TBFs)? This question serves as the starting point to explore which factors influence international operations' internationalization speed and longevity in TBFs. We gathered them into two groups based on the types of service provided and the characteristics of their clients. We analyzed these TBFs' internationalization processes and the length of time they continued operating abroad, considering survival over time. Using a qualitative approach, we conducted a multiple case study of four internationalized TBFs from Brazil. Our findings suggest that the level of creativity required by clients impacts both the speed of internationalization and the longevity of international operations. Regarding longevity and survival, while TBFs serving creative sectors tend to adapt more easily to culturally similar markets and develop products more quickly, TBFs working traditional sectors tend to exploit local networks revealing exciting nuances about the time perception among TBFs. © 2023 FUCAPE Business School. All rights reserved.
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4. |
- Floriani, Dinora Eilete, et al.
(author)
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Speed and Permanence : Elements of Internationalization of Technology-Based Firms
- 2019
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Conference paper (peer-reviewed)abstract
- This study analyzes the speed of internationalization and the permanence of the international operations of technology-based firms. We evaluated two types of technology-based companies: the creative ones, which are those whodevelopand sell software for digital entertainment, education, andgames; and the traditional ones, that is, those that develop and sell software for financial, legal, industrial sectors, among others. The speed with which these firms enter the international market after their foundation was analyzed, as well as the length of time these companies stay operating abroad, thus identifying sustainability over time. The search for results of this research used a qualitative, multiple case study with four internationalized technology-based firms, divided into two groups: creative and traditional. The contribution of this research is to explore which factors that influence the speed and permanence consider the potential of the intangible resource of creativity as a competitive advantage for rapid access to international markets, which, in turn, generates the knowledge that reflects in technological innovation to adapt and compete globally, making international operations sustainable over time.
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