The establishment mode choise of German multinational enterprises in Brazil: a comparative approach

We examine the drivers behind the establishment mode choice of German multinational enterprises (MNEs) in the sectors of Automotive, Chemicals and Mechanical Engineering in Brazil for the years 1993-2013 using a novel sample of primary data obtained directly from German MNEs. Based on prevalent theories found in the literature, we test the most common hypotheses on our sample. Firms with high R&D activities and firms with prior market knowledge in Brazil in from of previous sales offices are more likely to enter Brazil by a Greenfield investment. We also show that it is the specific private ownership of the German so-called hidden champions that drive those specific SMEs to enter Brazil by Greenfield, a sneaking suspicion that has been made before. Finally, we show that the establishment mode choice between Brazil and the USA only deviates to a low extent, with German MNEs preferring to enter Brazil by Greenfield and the USA by M&A. Thereby, we provide valuable insights for future research in this field.

Organizational design as an enabler for innovation: evidence from a German Mechanical Engineering Company

Over the past two decades there has been a profusion of empirical studies of organizational design and its relationship to efficiency, productivity and flexibility of an organization. In parallel, there has been a wide range of studies about innovation management in different kind of industries and firms. However, with some exceptions, the organizational and innovation management bodies of literature tend to examine the issues of organizational design and innovation management individually, mainly in the context of large firms operating at the technological frontier. There seems to be a scarcity of empirical studies that bring together organizational design and innovation and examine them empirically and over time in the context of small and medium sized enterprises. This dissertation seeks to provide a small contribution in that direction. This dissertation examines the dynamic relationship between organizational design and innovation. This relationship is examined on the basis of a single-case design in a medium sized mechanical engineering company in Germany. The covered time period ranges from 1958 until 2009, although the actual focus falls on the recent past. This dissertation draws on first-hand qualitative empirical evidence gathered through extensive field work. The main findings are: 1. There is always a bundle of organizational dimensions which impacts innovation. These main organizational design dimensions are: (1) Strategy & Leadership, (2) Resources & Capabilities, (3) Structure, (4) Culture, (5) Networks & Partnerships, (6) Processes and (7) Knowledge Management. However, the importance of the different organizational design dimensions changes over time. While for example for the production of simple, standardized parts, a simple organizational design was appropriate, the company needed to have a more advanced organizational design in order to be able to produce customized, complex parts with high quality. Hence the technological maturity of a company is related to its organizational maturity. 2. The introduction of innovations of the analyzed company were highly dependent on organizational conditions which enabled their introduction. The results of the long term case study show, that some innovations would not have been introduced successfully if the organizational elements like for example training and qualification, the build of network and partnerships or the acquisition of appropriate resources and capabilities, were not in place. Hence it can be concluded, that organizational design is an enabling factor for innovation. These findings contribute to advance our understanding of the complex relationship between organizational design and innovation. This highlights the growing importance of a comprehensive, innovation stimulating organizational design of companies. The results suggest to managers that innovation is not only dependent on a single organizational factor but on the appropriate, comprehensive design of the organization. Hence manager should consider to review regularly the design of their organizations in order to maintain a innovation stimulating environment.

The influence of materialism on consumption indebtedness in the context of low income consumers from the city of São Paulo

This research is in the domains of materialism, consumer vulnerability and consumption indebtedness, concepts frequently approached in the literature on consumer behavior, macro-marketing and economic psychology. The influence of materialism on consumer indebtedness is investigated within a context that is characterized by poverty and by factors that cause vulnerability, such as high interest rates, limited access to credit and to quality affordable goods. The objectives of this research are: to produce a materialism scale that is well adapted to its environment, characterizing materialism adequately for the population studied; to compare results obtained with results of other studies; and to measure the relationship between materialism, socio-demographic variables, attitude to debt and consumption indebtedness. The primary data used in the analyses were collected from field research carried out in August, 2005 that relied on a probabilistic household sample of 450 low income individuals who live in poor regions of the city of Sao Paulo. The materialism scale, adapted and translated into Portuguese from Richins (2004), proved to be very successful and encourages new work in the area. It was noted that younger adults tend to be more materialistic than older ones; that illiterate adults tend to be less materialistic than those who did literacy courses when they were already adults; and that gender, income and race are not associated with the materialism construct. Among the other results, a logistic regression model was developed in order to distinguish those individuals who have an installment plan payment booklet from those who do not, based on materialism, socio-demographic variables and purchasing and consumer habits. The proposed model confirms materialism as a behavioral variable useful for forecasting the probability of an individual getting into debt in order to consume, in some cases almost doubling the chance of occurrence of this event. Findings confirm the thesis that it is not only adverse economic factors that lead people to get into debt; and that the study of demand for credit for consumption purposes must, of necessity, include variables of a psychological nature. It is suggested that the low income materialistic consumer experiences feelings of powerlessness and exclusion because of the gap that exists between their possessions and their desires. Lines of conduct to combat this marginalization from the consumer society are drawn targeting marketing professionals, public policy makers and vulnerability researchers. Finally, the possibility of new studies involving the materialism construct, which is central to literature on consumer behavior, albeit little used in empirical studies in Brazil, are discussed.

Which strategies can an educational business, such as a kindergarten in Germany, develop to foster employee engagement?

Which strategies can an educational business, such as a Kindergarten in Germany, develop to foster employee engagement? The goal of this master thesis is to identify effective and viable measures to engage employees, that could be potentially implemented in a Kindergarten in Germany. The literature concerning the notion of employee engagement is so inconsistent that even studies about the subject fail to find one common definition and have to acknowledge the variety of existing definitions (IES, 2014, p.52-53). This reflects the youth of the concept, which has only been partially studied by academics and practitioners in recent years. The literature gap about employee engagement concerns many aspects, among which small companies and educational businesses, in particular those focusing on early child development. Considering the low levels of employee engagement in Germany combined with the absence of studies on educational organizations focusing in early child development this master thesis studies engagement in German Kindergärten(s). This master thesis is divided in two parts consisting of a literature review and a case study. The literature review allows to follow the evolution of the concept along the years, while the case study focuses on assessing employee engagement in Montessori Kindergärten(s) in Munich & elaborating potential measures to increase engagement levels. Double sided research was undertaken for this case study. On the one hand a quantitative research was performed, through a survey, in order to uncover which strategies would be viable to foster employee engagement. On the other hand a qualitative research was undertaken, consisting in an internship in a Kindergarten, in order to shed light on how to do so. Findings in the quantitative research indicate overall engagement levels average to low. Results related to specific statements bring out the originality of the educational sector, which is in some aspects intrinsically engaging, similarly to the medical field (Seijts & Crim, 2006). Furthermore low engagement levels led to a conversely high number of positives responses to potential engagement strategies suggesting their potential effectiveness. Findings in the qualitative research are coherent with qualitative results and complement them