Brazilian Multinationals' Ownership Mode: The Influence of Institutional Factors and Firm Characteristics



Document title: Brazilian Multinationals' Ownership Mode: The Influence of Institutional Factors and Firm Characteristics
Journal: BAR - Brazilian Administration Review
Database:
System number: 000552915
ISSN: 1807-7692
Authors: 1
2
2
Institutions: 1Banco Nacional de Desenvolvimento Economico e Social, Rio de Janeiro. Brasil
2Pontifícia Universidade Católica do Rio de Janeiro, Rio de Janeiro. Brasil
Year:
Volumen: 12
Number: 2
Pages: 190-208
Country: Brasil
Language: Inglés
Document type: Artículo
English abstract This work investigates whether host countries institutional factors and firm characteristics can help the understanding of Brazilian multinationals' choices of ownership mode for their foreign direct investments (FDI). Brazil is a privileged locus for research on emerging market multinationals (EMNEs), given its growing stock of outward FDI. The paper contributes to a better understanding of the international strategic choices of EMNEs. First, the phenomenon under study is examined using the theoretical lenses of institutionalism. Second, the study looks at the relationship between state support and choice of ownership mode, a new issue in the area of international business. Third, differences between the decisions taken by manufacturing and service EMNEs are also examined. Fourth, the study focuses on an emerging country, Brazil. The quality of the regulatory environment of the host country, and differences in beliefs, cultural identity and management practices between the host country and the country of origin are factors of the institutional environment significantly related to the choice of ownership mode by Brazilian EMNEs. As to firm characteristics, our results show that state support favors the choice of joint ventures, and that service EMNEs also significantly prefer joint ventures, when compared to manufacturing firms. The findings also support the view that EMNEs are less sensitive to institutional weaknesses in host countries.
Disciplines: Administración y contaduría
Keyword: Administración de instituciones
Keyword: Institutionalism,
Ownership mode,
Institutional distance,
Regulatory environment,
Management of institutions
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