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This study aims to challenge the generic interpretation of Multilatinas as Latin American firms that have been able to internationalize because of highly competitive strategic capabilities. The authors test whether capabilities that international business researchers commonly associate with internationalization are necessary at different stages of the internationalization process to better understand the extent to which emerging market (EM) firms need to develop them.

International business research suggests a positive association between strategic capabilities and firm internalization. However, it remains unclear what specific capabilities are necessary and when they are necessary. These questions are particularly important in the context of the internationalization of firms from emerging economies, such as Latin America. The authors apply necessary condition analysis (NCA) on a sample of Latin American firms at different internationalization stages to test what strategic capabilities represent necessary conditions for becoming a Multilatina.

The findings suggest that only a few strategic capabilities are necessary for Latin American firms to become “Multilatinas”. While entrepreneurial orientation and marketing and sales capabilities represent necessary conditions, EM firms may internationalize even though other capabilities are developed to a lesser extent. The authors reflect on how shifts in local markets and technology drive the emergence of different types of Multilatinas.

Measuring strategic capabilities across multiple EM firms implies a risk that firm-specific aspects are not fully captured. While the authors focused on the comparative competitive strength of capabilities and took great care to minimize measurement error, the authors acknowledge possible bias. Also, while NCA does not require a minimum sample size, findings from our sample of firms from four countries may not generalize to the region or other EMs.

As a relatively new statistical technique, the use of NCA has spread rapidly. To the best of the authors’ knowledge, the linkage between organizational capabilities and firm internationalization has not been tested from a necessary conditions perspective yet. The reflections on the “Multilatina” concept based on the notion of EM firms as configurations of strategic capabilities inform current debates on EM multinational enterprises.

Ambient advertising is a unique, intimate and non-traditional form of communication between the product and the consumer; and uses all physical and environmental elements leading to stronger customer engagement. The purpose of this paper is to explore the innovations in ambient advertising including flash mob dancing, use of structures, posters, props, bus tickets, supermarket floors, shopping carts, bank receipts, animals, and other strange and unusual venues in developed economies (e.g. the USA) vs emerging economies (e.g. India).

The research proposes relationship strength (R)-inherent drama (I)-prodigious execution (P) or R-I-P conceptual framework to measure ambient advertising and delves into the R-I-P constructs of ambient advertising.

The results of Study 1 demonstrate that consumers’ global consumption orientation positively influences their attitudes toward ambient advertising. Results from Studies 2 and 3 exhibit interesting comparisons of innovations in ambient advertising between the USA and India; which improves understanding of globalization of ambient advertising in both developed and emerging economies. Relationship strength (R) between the product and the customer strengthens ad believability in both developed and emerging economies; while inherent dramatic surprise (I) displays contrasting results for developed and emerging economies. Prodigious execution (P) results in ad irritation for developed economies while it has no impact for emerging economies.

Overall R-I-P constructs of ambient advertising strengthen brand and ad attitudes and purchase intentions. The research has strong implications for advertising innovations in the USA vis-à-vis India, and demonstrates stronger implications of advertising internationalization across developed and emerging economies.

The research is valuable in the context of emerging and developed economies of the world with respect to ambient advertising. The research explores the trends in ambient advertising and develops measures for testing perceptions of consumers in various world markets toward ambient advertising. The world economies exhibit varying levels of acceptance and appreciation to the global emerging advertising trends, and this presents a huge challenge to the companies worldwide.

Small and medium enterprises (SMEs), which main objective is to satisfy the basic needs of the entrepreneur, when geographically concentrated make up subsistence clusters. The purpose of this paper is to analyze collective efficiency in subsistence clusters as growth strategy and how is the process through which the relational capital and territorial proximity altogether improve performance of firms.

The research uses partial least squares techniques applied to a sample of 113 SMEs of wood industry in Oberá, Argentina.

SMEs in subsistence clusters can use relational capital and territory as resources to generate competitive advantages. These competitive advantages foster performance. In consequence, collective efficiency appears as growth strategy in subsistence SMEs.

Data are cross-sectional and in a conjuncture of economy expansion, future research should monitor the sample of firms using panel data to assess the development of relations. Sample is in a particular region and sector and generalizations should be done carefully.

SMEs probably should integrate and share industrial and business structures to develop systemic competitive advantages with a collective character. SMEs should leverage their spatial interaction to build trust and establish networks of cooperation that will be the source of their collective efficiency. These collaboration networks should base in the local knowledge.

Subsistence SMEs have strong impact on the most disadvantaged areas in developing countries. Growth strategies to professionalize these SMEs will have a major impact on the endogenous development of those territories.

The research provides a mechanism through which collective efficiency leads to better performance for subsistence SMEs.

The purpose of this paper is to determine the antecedents of reverse innovation.

Data were collected through an online survey administered using telephone assistance and sent to the 1,000 largest (in terms of revenue) foreign subsidiaries in Brazil. The responding companies numbered 167. For the data analysis, the authors chose the statistical technique of structural equation modeling.

The paper shows that reverse innovation is related to headquarters’ support, autonomy, and integration. Specifically, the authors consider the power of strategic integration between headquarters and subsidiaries as one of the important antecedents of reverse innovation.

Integration has an important role to reverse innovation. In order to stimulate integration, the executive of a subsidiary can make such efforts as invest in the mechanism of the relationship and exchange knowledge with headquarters. For example, it is recommended to encourage travel to the headquarters to more accurately align perceptions of parent and subsidiary executives and to utilize expatriates from headquarters to provide knowledge to subsidiaries about the main processes of the company and to promote subsidiary innovations.

Literature contains some articles discussing and relating some cases of reverse innovation. However, this paper shows the organizational structure necessary for reverse innovation.

State capitalism is an economic model that relies on the role of a strong central government to support chosen firms and industries with subsidies, tax benefits and other advantages to which non-favored firms or industries do not have access (Bremmer, 2010). From an economic development perspective state capitalism is often used to redirect economic activity to underdeveloped regions (Wickham, 2009; Chobanyan and Leigh, 2006; Porter, 2008). The purpose of this paper is to examine the case of the Brazilian shipbuilding to illustrate the use of state capitalism to direct economic activity.

Using Porter’s diamond factor model the authors analyze the development of an economic cluster focussed on the shipbuilding industry in northeastern Brazil. Using interviews with company executives and archival information, the authors profile the investments and incentives that the government has made in this region with particular attention to the mechanisms and policy directives designed to support local involvement in cluster activity.

The authors find that the Brazilian shipbuilding industry offers a unique perspective on the role that governments play in the inducement of economic activity. The authors document the challenges that confront the local enterprise in meeting the requirements of the state controlled buyer and the difficulties associated with developing a local supplier base and finding a qualified workforce. The authors conclude with comments with regard to the applicability of this model to economic development activity in other country contexts.

This research adds to the body of literature on the role of governments in the creation of economic clusters.

Economic development in emerging markets is often associated with strong government intervention. The authors use the Brazilian shipbuilding industry to illustrate the role of a state owned enterprise in facilitation of economic development.

Some countries may suffer from what has been known as the “resource curse,” that is, the misallocation of resource wealth into non-productive activities. In this paper, the authors illustrate and attempt by the Brazilian government to use this wealth to create employment opportunities in an underdeveloped region of the country.

Emerging markets are challenged in developing viable enterprises that are competitive in global markets. Most research on the development of industrial clusters is focussed on developed markets. These markets do not have to confront the same challenges found in emerging markets. The research illustrates these challenges and the efforts that may be made to surmount them.

The purpose of this paper is to deepen the discussion regarding the competitiveness of clusters based on a theoretical and empirical study that compares the level of competitiveness of the Brazilian wine cluster located in Serra Gaúcha with the competitiveness of the Chilean cluster located in Valle del Maule.

A qualitative-descriptive approach was applied to the study, and data collection was conducted through secondary sources.

The analysis employed a competitiveness analysis model consisting of 11 competitiveness factors. The Chilean cluster presented a higher level of competitiveness in four competitiveness factors (“scope of viable and relevant business,” “introduction of new technologies,” “balance with no privileged positions” and “oriented strategy”), while the Brazilian cluster presented a higher level of competitiveness in three competitiveness factors (“concentration,” “cooperation” and “replacement”). For four of the competitiveness factors of the model, both clusters presented similar levels of competitiveness.

By comparing the two wine clusters, it was possible to identify aspects that can be improved to increase competitiveness, especially in the Brazilian cluster. These aspects include, first, the need for bottle manufacturers in Serra Gaúcha, which would have a positive impact on production costs; second, the expansion of the geographical indication registration for the entire Serra Gaúcha region, resulting in an enhanced image of Brazilian wine abroad; and third, greater incentives for exports, which would result in an increase in market share.

The paper proposes an explanation for the superior level of competitiveness of the Chilean cluster regarding the “scope of viable and relevant business,” “balance with no privileged positions,” “introduction of new technologies” and “strategy focussed on cluster development.” In terms of its contribution, the study developed additional metrics for the model adopted, which can be used for the competitive analysis of other agribusiness clusters.

The purpose of this paper is to review the literature on corporate reputation and internationalization to identify key research theories, contexts, characteristics, methodologies, applications, limitations and opportunities for future research on the interlinks between these two complex constructs.

Elements of systematic literature review and bibliometric analysis were used to analyze theories, contexts, characteristics, methodologies and opportunities for future research based on 90 articles published in 50 journals over 27 years.

The findings suggest that this is a contemporary yet expanding research field explored from a variety of theoretical, methodological and empirical standpoints, which hinders broad conclusions and warrants further research. More specifically, this paper identifies three broad research streams that link international expansion and corporate reputation and suggests avenues for future studies: cross-national institutions, strategic decisions and corporate reputation; international marketing, consumers and brand credibility; and corporate image, international trade and investment flows.

Reputation and internationalization are constructs with multiple applications and interpretations. The way companies build, maintain and extend their reputation and legitimacy, and the drivers, motives and difficulties faced by them when expanding operations internationally have been widely studied separately. This manuscript reviews the nascent and promising linkage between these two elements that have recently drawn the attention of business practitioners and scholars alike.

The purpose of this paper is to combine notions from the POST Model of Economic Geography and Learning Theory from International Business to study how firms may enhance their responsiveness to institutional processes and changes through different forms of international learning. Focussing on one form of institutional changes, namely pro-market reforms, the paper analyzes how firms may boost the potential benefits from such changes through international strategies that increase their access to knowledge spillovers and absorptive capacity. These strategies include international product diversification, enhancing innovation capabilities, informal institutional exposure, accumulated internationalization knowledge, and overall experiential knowledge.

The hypotheses are tested using generalized least squares models with AR(1) panel-specific autocorrelation and heteroskedasticity correction. Based on the preliminary analyses performed in these studies, the author also executes a Hausman test, Bartlett’s test, and James/Alexander’s test. The results of these analyses indicate that the use of random effects is appropriate; that moderating effects are present; and that multivariate analyses using these moderators are suitable, respectively.

The results indicate that pro-market reforms have a positive and significant effect on the profitability of firms from developing countries. Furthermore, they provide support for the positive moderating effects of international product diversification, innovation capabilities, informal institutional exposure, accumulated internationalization knowledge, and overall experiential knowledge. Together, these findings suggest that through their international strategic decisions, MNEs can enhance their access to knowledge and become more responsive to institutional changes in their home market.

This paper contributes to the economic geography literature by linking the POST Model with the classification of types of knowledge from Learning Theory. The paper analyzes how characteristics of place, organization, space, and time play a different role for each of the three basic types of knowledge that is relevant for international firms: institutional, business, and internationalization. Furthermore, the paper contributes to the literature on reforms and firm profitability by delving deeper into the moderating effect of strategic decisions on the relationship between reforms and firm performance. This allows us to have a deeper comprehension of how various sources of international learning may enhance the responsiveness of firms to institutional changes.

The paper provides several important contributions to the international strategy literature. First, it contributes to Learning Theory by combining it with the POST Model of Economic Geography to study how each of the three sources of knowledge (and their subcomponents) can be further broken down into factors of place, organization, space, and time. Second, it contributes to the literature of institutional change by studying how knowledge acquired through vastly different means can provide firms with sources of competitive advantage over other local competitors when responding to institutional changes in their home market. Third, it contributes to the literature on reforms and profitability by studying five novel moderators of this relationship.

Liberal arts colleges (LACs) have played a crucial role in the foundation and development of the US higher education system. Today, these schools face numerous organizational and environmental challenges that threaten their performance and even survival. This paper aims to examine whether Senge’s (1990) vision of the learning organization can serve a useful function in responding to these challenges.

A conceptual analysis was conducted based on research relating to learning organizations, LACs and the liberal arts tradition.

The paper identifies significant congruence between learning organization and liberal arts/liberal learning principles. LACs may benefit from applying and modifying Senge’s (1990) framework to their own unique situations.

While The Fifth Discipline has certainly contributed to the lexicon of higher education, the role that Senge’s (1990) framework plays in LACs has received scant research attention. This paper investigates the applicability of Senge’s approach to an underexplored context.