Publicado

2012-07-01

The impact of business group diversification on emerging market multinationals: Evidence from Latin America

Impacto de los grupos empresariales diversificados en las multinacionales de mercados emergentes: Evidencia de América Latina

Impacto dos grupos empresariais diversificados nas multinacionais de mercados emergentes: evidência da américa latina

Palabras clave:

Internationalization, performance, business groups, institutional voids, regionalization (en)
Internacionalización, performance, grupos empresariales, fallas institucionales y regionalización (es)
internacionalização, performance, grupos empresariais, falhas institucionais e regionalização (pt)

Descargas

Autores/as

  • Armando Borda-Reyes Universidad ESAN
This article explored whether the benefits of business group diversification on the scope-performance relationship varies depending on the level of development of the network of subsidiaries and the region of operation of the focal firm. To test the hypothesis presented, a panel data with fix effects models was used on a sample of Latin American firms. The results suggested that business group diversification has the capacity to generate value in the internationalization process of their affiliates. However, the benefits of business group diversification are location bound within the region (Americas) but they are not related to the level of development of the targeted countries.
El presente artículo explora si los beneficios asociados a los grupos empresariales diversificados en la relación entre scope de operaciones y performance financiero dependen tanto del nivel de desarrollo de los países en los que la empresa tiene subsidiarias como de la región geográfica donde la empresa concentra sus operaciones. Para testear las hipótesis presentadas, se utilizó un estudio panel con efectos fijos en una muestra de empresas Latino americanas. Los resultados sugieren que los grupos empresariales diversificados tienen la capacidad de generar valor en el proceso de internacionalización de sus afiliadas. Sin embargo, estos beneficios se obtienen básicamente dentro de la región (América) pero no están relacionados con el nivel de desarrollo de los países en los que la empresa participa.
O presente artigo explora se os benefícios associados aos grupos empresariais diversificados na relação entre scope de operações e performance financeiro dependem tanto do nível de desenvolvimento dos países nos quais a empresa tem subsidiárias quanto da região geográfica onde a empresa concentra suas operações. Para testar as hipóteses apresentadas, utilizou-se um estudo painel com efeitos fixos em uma amostra de empresas latino-americanas. Os resultados sugerem que os grupos empresariais diversificados têm a capacidade de gerar valor no processo de internacionalização de suas afiliadas. Contudo, esses benefícios se obtêm basicamente dentro da região (América), mas não estão relacionados com o nível de desenvolvimento dos países dos quais a empresa participa.

Referencias

Aiken, L. & West, S. (1991). Multiple Regression: Testing and Interpreting Interactions. Newbury Park, CA: Sage.

Aulakh, P., Kotabe, M. & Teegen, H. (2000). Export strategies and performance of firms from emerging economies: Evidence from Brazil, Chile, and Mexico. Academy of Management Journal, 43(3), 342-361.

Baum, C. (2006). An Introduction to Modern Econometrics Using Stata. College Station, TX: Stata Press.

Baum, J. A. & Shipilov, A. V. (2006). Ecological approaches to organizations. In Clegg, S. R., Hardy, C., Nord, W. & Lawrence, T. (Eds.), Handbook of organization studies: 55-110. London: Sage.

Bausch, A. & Krist, M. (2007). The effect of context-related moderators on the internationalization-performance relationship: Evidence from meta-analysis. Management International Review, 47(3), 319-347.

Berry, H., Guillen, M. F. & Zhou, N. (2010). An institutional approach to cross-national distance. Journal of International Business Studies, 41, 1460-1480.

Bonaglia, F., Goldstein, A. & Mathews, J. A. (2007). Accelerated internationalization by emerging markets multinationals: The case of the white goods sector. Journal of World Business, 42(4), 369-383.

Brenes, E. (2000). Strategies for globalizing Latin American business. Journal of Business Research, 50(1), 3-7.

Brenes, E. & Dominguez, L. (1997). Strategic choices in the new international enterprise in Latin America. Journal of Business Research, 38(1), 1-2.

Burt, R. S. (1992). Structural Holes: The social structure of competition. Harvard University Press.

Carney, M., Gedajlovic, E. R., Heugens, P. P., Van Essen, M. & Van Oosterhout, J. (2011). Business group affiliation, performance, context and strategy: A meta analysis. Academy of Management Journal, 54(3).

Chakrabarti, A., Vidal, E. & Mitchell, W. (2011). Business transformation in heterogeneous environments: The impact of market development and firm strength on retrenchment and growth reconfiguration. Global Strategy Journal, 1, 6-26.

Chung, C. (2001). Markets, culture and institutions: The emergence of large business groups in Taiwan, 1950s-1970s. Journal of Management Studies, 38(5), 719-745.

Contractor, F., Kundu, S. & Hsu, C. (2003). A three-stage theory of international expansion: The link between multinationality and performance in the service sector. Journal of International Business Studies, 34(1), 5-18.

Cuervo-Cazurra, A. (2007). Sequence of value-added activities in the internationalization of developing country MNEs. Journal of International Management, 13(3), 258-277.

Cuervo-Cazurra, A. (2008). The multinationalization of developing country MNEs: the case of multilatinas. Journal of International Management, 14(2), 138-154.

Cuervo-Cazurra, A. & Dao, L. (2009a). Structural reform and firm exports. Management International Review, 49(4), 479-507.

Cuervo-Cazurra, A. & Dao, L. (2009b). Promarket reforms and firm profitability in developing countries. Academy of Management Journal, 52(6), 1348-1368.

Cuervo-Cazurra, A. & Genc, M. E. (2008). Transforming disadvantages into advantages: developing country MNEs in the least developed countries. Journal of international business studies, 39, 957-979.

Cuervo-Cazurra, A. & Genc, M. E. (2011). Obligating, Pressuring, and Supporting Dimensions of the Environment and the Non-Market Advantages of Developing-Country Multinational Companies. Journal of Management Studies, 48(2), 441-455.

De Soto, H. (2000). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. New York: Basic Books.

Dierickx, I. & Cool, K. (1989). Asset stock Accumulation and sustainability of competitive advantage. Management Science, 35(12), 1504-1514.

DiMaggio, P. J. & Powell, W. W. (1983). The iron cage revisited - Institutional isomorphism and collective rationality in organizational fields. American Sociological Association, 48(2), 147-160.

Flores, R. G. & Aguilera, R. V. (2007). Globalization and location choice: an analysis of US multinational firms in 1980 and 2000. Journal of International Business Studies, 38(7), 1187-1210.

Garcia-Canal, E. & Guillen, M. F. (2008). Risk and the strategy of foreign location choice in regulated industries. Strategic Management Journal, 29, 1097-1115.

Ghemawat, P. & Khanna, T. (1998). The nature of diversified business groups: A research design and two case studies. Journal of industrial economics, 46(1), 35-61.

Glaum, M. & Oesterle, M. J. (2007). 40 Years of Research on Internationalization and Firm Performance: More Questions than Answers? Management International Review, 47(3), 307-317.

Goerzen, A. & Beamish, P. (2003). Geographic scope and multinational enterprise performance. Strategic Management Journal, 24(13), 1289-1306.

Gomes, L. & Ramaswamy, K. (1999). An empirical examination of the form of the relationship between multinationality and performance. Journal of International Business Studies, 30(1), 173-188.

Gomez-Mejia, L. R., Balkin, D. B. & Cardy, R. L. (2012). Managing human resources. Upper Saddle River, NJ: Prentice Hall.

Granovetter, M. (1994). Business groups. In Smelser, N. J. & Swedberg, R. (Eds.) The Handbook of Economic Sociology (pp. 453-475). Princeton, NY: Princeton University Press.

Granovetter, M. (2005). Business group and social organization. In Smelser, N. J. & Swedberg, R., (Eds.), The Handbook of Economic Sociology. Princeton, NY: Princeton University Press.

Guillen, M. (2000). Business groups in emerging economies: A resourcebased view. Academy of Management Journal, 43(3), 362-380.

Guillen, M. (2002). Imitation, inertia and foreign expansion: South Korean firms and business groups in China, 1987-1995. Academy of Management Journal, 45(3), 509-525.

Guillen, M. (2003). Experience, imitation, and the sequence of foreign entry: wholly owned and joint-venture manufacturing by South Korean firms and business groups in China, 1987-1995. Journal of International Business Studies, 34(2), 185-198.

Gwartney, J., Lawson, R. & Hall, J. (2011). Economic Freedom of the World: 2011 Annual Report. Fraser institute. http://www.freetheworld.com/2011/reports/world/EFW2011_complete.pdf (September 15, 2011).

Haar, J. (1989). A comparative analysis of the profitability performance of the largest US, European and Japanese multinational enterprises. Management International Review, 29(3), 5-18.

Hair, J. F., Anderson, R. F., Tatham, R. L. & Black, W. C. (1998). Multivariate data analysis. Upper Saddle River, NJ: Prentice Hall.

Hannan, M. T. & Freeman, J. (1984). Structural inertia and organizational change. American Sociological Review, 49(2), 149-164.

Henisz, W. J. (2003). The power of the Buckley and Casson thesis: The ability to manage institutional idiosyncrasies. Journal of international business studies, 34, 173-184.

Hennart, J. F. (2007). The theoretical rationale for a multinationality-performance relationship. Management International Review, 47(3), 423-452.

Hennart, J. F. (2011). A theoretical assessment of the empirical literature on the impact of multinationality on performance. Global Strategy Journal, 1(1), 135-151.

Holburn, G. L. F. (2001). Regulatory Institutions and Firm Strategy: Theory and Evidence from the Electric Power Industry. Unpublished doctoral dissertation, University of California, Berkeley.

Holburn, G.L. & Zelner, B.A. (2010). Political Capabilities, Policy Risk, and international investment strategy from the global electric power generation industry. Strategic Management Journal, 31(12), 1290-1315.

Hoskisson, R.E., Cannella, A.A., Tihanyi, L. & Faraci, R. (2004). Asset restructuring and business group affiliation in French civil law countries. Strategic Management Journal, 25(6), 525-539.

Hoskisson, R. E., Eden, L., Lau, C. M. & Wright, M. (2000). Strategy in emerging economies. Academy of Management Journal, 43(3), 249-267.

Hoskisson, R. E., Johnson, R. A., Tihanyi, L. & White, R. E. (2005). Diversified business groups and corporate refocusing in emerging economies. Journal of Management, 31(6), 941-965.

Hundley, G., Jacobson, C. K., (1998). The effects of the keiretsu on the export performance of Japanese companies: Help or Hindrance? Strategic Management Journal, 19(10), 927-937.

Khanna, T. & Palepu, K. (1997). Why focused strategies may be wrong for emerging markets. Harvard Business Review, 75(4), 41-51.

Khanna, T. & Palepu, K. (1999). The right way to restructure conglomerates in emerging markets. Harvard Business Review, 77(4), 125-134.

Khanna, T. & Palepu, K. (2000a). The future of business groups in emerging markets: Long-run evidence from Chile. Academy of Management Journal, 43(3), 268-285.

Khanna, T. & Palepu, K. (2000b). Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups. The Journal of Finance, 14(2), 867-891.

Khanna, T. & Rivkin, J. W. (2001). Estimating the performance effects of business groups in emerging markets. Strategic Management Journal, 22(1), 45-74.

Kim, H., Hoskisson, R. E. & Wan, W. P. (2004). Power dependence, diversification strategy and performance in keiretsu member firms. Strategic Management Journal, 25(7), 613-636.

Kostova, T. & Zaheer, S. (1999). Organizational legitimacy under conditions of complexity: The case of the multinational enterprise. Academy of Management Review, 24(1), 64-81.

La Porta, R., Lopez de Silanes, F., Shleifer, A. & Vishny, R. W. (1997). Legal determinants of external finance. The journal of finance, 52(3), 1131-1150.

Mathews, J. A. (2006). Dragon multinationals: New players in 21st century globalization. Asia Pacific Journal of Management, 23(1), 5-27.

Meyer, K. E. (2006). Global focusing: from domestic conglomerates to global specialists. Journal of Management Studies, 43(5), 1109-1144.

North, D. (1990). Institutions, institutional change and economic performance. New York: Cambridge University Press.

OUSTR - Office of the United States Trade Representative (2012). Free Trade Agreements. Disponible en from: http://www.ustr.gov/ trade-agreements/free-trade-agreements.

Peng, M. W. (2003). Institutional transitions and strategic choices. Academy of Management Review, 28(2), 275-296.

Peng, M. W., Lee, S. & Wang, D. (2005). What determines the scope of the firm over time? A focus on institutional relatedness. Academy of Management Review, 30(3), 622-633.

Prahalad, C. K. & Bettis, R. A. (1986). The dominant logic - A new linkage between diversity and performance. Strategic Management Journal, 7(6), 485-501.

Rugman, A. & Verbeke, A. (2004). A perspective on regional and global strategies of multinational enterprises. Journal of International Business Studies, 35(1), 3-18.

Rugman, A. & Verbeke, A. (2005). Towards a theory of regional multinationals: A transaction cost economics approach. Management International Review, 45(1), 5-17.

Rugman, A. & Verbeke, A. (2007). Liabilities of regional foreignness and the use of firm-level versus country-level data: a response to Dunning et al., (2007). Journal of International Business Studies, 38(1), 200-205.

Rugman, A. & Verbeke, A. (2008a). A New Perspective on the Regional and Global Strategies of Multinational Services Firms. Management International Review, 48(4), 397-411.

Rugman, A. & Verbeke, A. (2008b). The theory and practice of regional strategy: A response to Osegowitsch and Sammartino. Journal of International Business Studies, 39, 326-332.

Rugman, A., Verbeke, A. & Nguyen. (2011). Fifty years of International business theory and beyond. Management International Review, 51, 755-786.

Shleifer, A. & Vishny, R. (1997). A survey of corporate governance. Journal of Finance, 52, 737-783.

StataCorp. (2005). Stata Statistical Software: Release 9.0. College station, TX: StataCorp LP.

Tan, D. & Meyer, K. (2010). Business groups' outward FDI: A managerial resources perspective. Journal of International Management, 16(2), 154-164.

Thomas, L. G. & D'Aveni, R. A. (2010). The rise of hypercompetition from 1950 to 2002: Evidence of increasing industry destabilization and temporary competitive advantage. Working paper 2004-11. Hanover, NH: Tuck School of Business at Darmouth.

Tihanyi, L., Griffith, D. A. & Russell, C. J. (2005). The effect of cultural distance on entry mode choice, international diversification, and MNE performance: a meta-analysis. Journal of International Business Studies, 36, 270-283.

USA Today. (2003). 39 million make Hispanics largest U.S. minority group. Disponible en: http://www.usatoday.com/news/nation/census/2003-06-18-Census_x.htm. (05 January 2012).

Vassolo, R. S., De Castro, J. O., Gomez-Mejia, L. R. (2011). Managing in Latin America: Common issues and research agenda. The Academy of Management Perspectives, 25(4), 22-36.

Vermeulen, F. & Barkema, H. (2002). Pace, Rhythm, and Scope: Process Dependence in Building a Profitable Multinational Corporation. Strategic Management Journal, 23(7), 637-653.

Verbeke, A., Li, L. & Goerzen, A. (2009). Toward more effective research on the multinationality-performance relationship. Management International Review, 49(2), 149-162.

Williamson J. (2004). The strange history of the Washington consensus. Journal of Post Keynesian Economics, 27, 195-206.

Wooldridge, J. (2002). Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press.

Yiu, D., Lu, Y., Bruton, G. D. & Hoskisson, R. E. (2007). Business groups: An integrated model to focus future research. Journal of Management Studies, 44(8), 1551-1579.

Cómo citar

APA

Borda-Reyes, A. (2012). The impact of business group diversification on emerging market multinationals: Evidence from Latin America. Innovar, 22(45), 97–110. https://revistas.unal.edu.co/index.php/innovar/article/view/36295

ACM

[1]
Borda-Reyes, A. 2012. The impact of business group diversification on emerging market multinationals: Evidence from Latin America. Innovar. 22, 45 (jul. 2012), 97–110.

ACS

(1)
Borda-Reyes, A. The impact of business group diversification on emerging market multinationals: Evidence from Latin America. Innovar 2012, 22, 97-110.

ABNT

BORDA-REYES, A. The impact of business group diversification on emerging market multinationals: Evidence from Latin America. Innovar, [S. l.], v. 22, n. 45, p. 97–110, 2012. Disponível em: https://revistas.unal.edu.co/index.php/innovar/article/view/36295. Acesso em: 16 feb. 2025.

Chicago

Borda-Reyes, Armando. 2012. «The impact of business group diversification on emerging market multinationals: Evidence from Latin America». Innovar 22 (45):97-110. https://revistas.unal.edu.co/index.php/innovar/article/view/36295.

Harvard

Borda-Reyes, A. (2012) «The impact of business group diversification on emerging market multinationals: Evidence from Latin America», Innovar, 22(45), pp. 97–110. Disponible en: https://revistas.unal.edu.co/index.php/innovar/article/view/36295 (Accedido: 16 febrero 2025).

IEEE

[1]
A. Borda-Reyes, «The impact of business group diversification on emerging market multinationals: Evidence from Latin America», Innovar, vol. 22, n.º 45, pp. 97–110, jul. 2012.

MLA

Borda-Reyes, A. «The impact of business group diversification on emerging market multinationals: Evidence from Latin America». Innovar, vol. 22, n.º 45, julio de 2012, pp. 97-110, https://revistas.unal.edu.co/index.php/innovar/article/view/36295.

Turabian

Borda-Reyes, Armando. «The impact of business group diversification on emerging market multinationals: Evidence from Latin America». Innovar 22, no. 45 (julio 1, 2012): 97–110. Accedido febrero 16, 2025. https://revistas.unal.edu.co/index.php/innovar/article/view/36295.

Vancouver

1.
Borda-Reyes A. The impact of business group diversification on emerging market multinationals: Evidence from Latin America. Innovar [Internet]. 1 de julio de 2012 [citado 16 de febrero de 2025];22(45):97-110. Disponible en: https://revistas.unal.edu.co/index.php/innovar/article/view/36295

Descargar cita

Visitas a la página del resumen del artículo

264

Descargas

Los datos de descargas todavía no están disponibles.

Licencia

Derechos de autor 2012 Innovar

Creative Commons License

Esta obra está bajo una licencia internacional Creative Commons Reconocimiento-NoComercial-CompartirIgual 3.0.

Todos los artículos publicados por Innovar se encuentran disponibles globalmente con acceso abierto y licenciados bajo los términos de Creative Commons Atribución-No_Comercial-Sin_Derivadas 4.0 Internacional (CC BY-NC-ND 4.0).

Una vez seleccionados los artículos para un número, y antes de iniciar la etapa de cuidado y producción editorial, los autores deben firmar una cesión de derechos patrimoniales de su obra. Innovar se ciñe a las normas colombianas en materia de derechos de autor.

El material de esta revista puede ser reproducido o citado con carácter académico, citando la fuente.

Esta obra está bajo una Licencia Creative Commons: