Wednesday, September 12, 2012

Resources and Internationalization Strategies: The Case of Latin American Multinationals
INSEAD Working Paper 2012/82/ST

In light of the recent interest in the internationalization of multinationals from emerging countries (EMNCs), we propose an analytical framework that challenges the somewhat condescending way in which these global players have been portrayed. Case studies of Latin American multinationals provide empirical evidence of the way certain resource attributes – availability, transferability and substitutability – are related to the decision to exploit, develop or defend their resources in foreign markets. We find that the internationalization strategies deployed by EMNCs are similar to those of traditional multinationals in many respects. To characterize them as resource ‗laggards‘ is an oversimplification and hinders the development of comprehensive theories of the internationalization of EMNCs.