Is production the core competence for the internationalization of emerging country firms?

The rise of new multinationals in countries like Brazil provides an opportunity to revisit and carefully construct theories of how firms internationalize, a topic on which extant theory is weak. Brazilian firms are "infant multinationals", unlike developed country firms that are "mature multinationals". They are also internationalizing in a very different global context, and can do so on the basis of different competitive advantages than multinationals that came before. Therefore, this study aims at creating subsidies for theory building about early-stage internationalization. Emerging country firms have Production competences as main competitive asset to internationalize, what reflects their competitive positioning in home markets and their entry strategy in international markets. In the case of early-entrants - Western multinationals in the 1950s and Japanese in the 1980s - the Production competence played a key role for successful internationalization. Thus, the focus of the study is the role that the Production competence plays in the internationalization of late-entrants, the emerging country multinationals. The research design considers not only the position of the headquarters but also the initiatives of the subsidiaries and the dynamic interplay between both. The paper allows a better understanding of internationalization processes and the role of Production, when firms start building their own international networks. It brings relevant insights about the paths that are being followed by emerging country multinationals, the difficulties they find, the solutions they develop. These are important inputs not only for new theory building but also for managerial practice. (C) 2012 Elsevier B.V. All rights reserved.

Comparing Regional Cultures Within a Country: Lessons From Brazil

In this joint article we test the common assumption that a measure of culture developed for the national level can also be used for comparing regions within a country. Three different research projects independently measured culture differences within the Federal Republic of Brazil, all three using a version of Hofstede`s Values Survey Module (VSM). The largest provided separate scores for all of Brazil`s 27 states, the next largest for 17 of the more populous states. Factor analyses of VSM item scores across states in both cases only very partly replicated Hofstede`s cross-national dimension structure; only Individualism versus Collectivism reappeared clearly. We attribute this lack of fit to a restriction of range of VSM item scores among states within a common Brazilian national culture. The item scores did show a cultural clustering of states that fairly closely followed the administrative division of the country into five regions. The culture profiles for these regions show remarkable differences between the Northeast with its Afro-Brazilian roots and the North with its native Indian roots. On the issue of comparing regional cultures, we found the VSM, based on global differences, too coarse a net for catching the finer cultural nuances between Brazilian states. Adding locally defined items would have made the studies more meaningful to Brazilians.