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Annex 1 Latin American sample firm details
Annex 2 Case Study Protocol Study overview
The objective of this study is twofold: first, the aim is to provide insight in the current internationalization motives and entry strategies of MNCs in their position as late movers vis-à-vis incumbents and international pioneers, moving into developed markets; and second, this study aims to contribute to the literature on internationalization and entry mode choice to help build a strategic entry approach for emerging market firms (EMFs), leveraging their emerging market-specific comparative advantages to overcome their late mover disadvantages in international expansion.
Related to the research aim, the research question is as follows: “What internationalization motives and entry strategies do emerging market firms have in their international expansion to developed countries and what entry strategies are suitable considering the comparative advantages of emerging market firms to overcome their late mover disadvantages?”
Procedures
A literature review on late mover positions, international expansion theories on entry mode choice and emerging market literature offers insight in the constructs relevant for studying Latin American firms moving into developed countries in Europe. Case study research on Mexican, Chilean and Brazilian MNCs by means of in-depth interviews (in English) with managers and coordinators provides the information to meet the first research aim. A reference study of Asian cases from literature, together with preceding information from literature and Latin American case study, is intended to generate ‘model’ strategies, covering the second research aim.
Qualitative desk research using multiple sources of evidence is employed to meet this end, by means of archival records and in-depth interviews with Latin American MNCs. Cases come from an industry that is a mature market in Western Europe, but that benefits from domestic comparative advantages, in order to speak of ‘late mover positions’.
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Interview questions
Date and time start interview:………...
General
a. Company details
- Company name:………...
- Country of origin:………....
- Year of foundation:………...
- Main products:……….
………..
- Consumer / industrial market
- Company size (annual turnover):………...
- Company history (mergers/acquisitions/joint ventures, etc.): ………....
………..
………..
b. Respondent details
- Name:………...
- Function:.……….
International presence
1. In how many countries is the firm currently present? (by any mode of entry)
………
a) In which regions?
Sales/distribution:
South America / North America / Europe / Asia / Middle East / Africa Mexico / US / Canada
………...
………...
Production:
South America / North America / Europe / Asia / Middle East / Africa Mexico / US / Canada
………...
………...
Purchase: ………..
b) By what mode(s) of entry?……….…………...
………...
2. In which countries in Europe is the firm present? (by any mode of entry)
………...
………...
3. Since when is the firm present in Europe?
………...
a) Which was the first country to enter?
………...
Motives / objectives
4. Why did the firm expand operations to Europe? (motives)
(access new markets / benefit local resources / absorb know-how, technologies / counterbalance competition / other)
………...
………...
a) Has the firm adapted its motives for subsequent entry? Yes / No
If Yes, what has changed and why? ………...
………....
b) Did the firm have different motives for different countries? Yes / No
If Yes, what motives differed? ………...
………....
Entry mode choice
5. How did the firm expand operations to Europe? (mode(s) of entry)
(direct exports / export via agent / representative office / franchising / licensing / strategic alliance / joint venture / merger / acquisition / greenfield investment)
………...
If export via agent or representative office: used as distribution facility to export to other countries?
………...
If merger / acquisition / greenfield FDI: established for production / distribution / sales / marketing?
………...
If subsidiary: low / moderate / high level of autonomy
………...
a) If multiple entry in Europe: Are the entry modes specific to particular countries / markets?
………...
………...
b) If multiple entry in Europe: In what sequence were the entry modes used?
………...
Resources
6. What resources / advantages does the firm possess that it deploys abroad? (to compete in foreign markets)
(raw materials / low-cost labor / low-cost production facilities / high-grade technology / international experience / other)
………...
………...
………...
a) To what extent do these resources originate in the home country?
………...
………...
7. What difficulties did the firm encounter in competing in developed markets?
………...
………...
v Thank you for your time.
- Do you have any suggestions / remarks?
………...
………...
- Are there any privacy issues that prevent me from publishing any of the information just discussed?
………...
- Would you be willing to answer any further questions at a later time? Yes / No Time end of interview………..
Report outline
1. Introduction 2. Methodology 3. Literature review
4. Latin American case study 5. Asian reference study 6. Discussion
7. Conclusion
Annex 3 Latin American Case Study Findings
Table 1 International spread
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Table 2 Motives
Table 3 Entry modes
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Table 4 Comparative advantages
Annex 4 Latin American Case Study Results - Overview
International spread
xi
International spread (continued)
Motives
xiii
Entry modes
Comparative Advantages
xv
Interview details
Cromex Brancolor Ltda. (Brazil)
Respondent name: Mr. E. Freitas
Respondent function: Foreign market manager Date and time interview: 26 June 2006, 21:21 – 22:02
Aldoro (Brazil)
Respondent name: Mr. S.M. Dou
Respondent function: Foreign market manager Date and time interview: 26 June 2006, 19:34 – 19:52
Artecola Industrias Quimicas Ltda. (Brazil) Respondent name: Mr. L. Rosa
Respondent function: Foreign market manager Date and time interview: 6 July 2006, 19:30 – 19:45
Inbra Industrias Quimicas Ltda. (Brazil) Respondent name: Mr. C. Fickers
Respondent function: Sales and marketing director Novasol (Inbra representative Europe)
Date and time interview: 30 June 2006, 08:00 – 08:13
Grisi (Mexico)
Respondent name: Ms. L. Candenas
Respondent function: Foreign market coordinator Date and time interview: 27 June 2006, 18:04 – 18:28
Oxiquim S.A. (Chile)
Respondent name: Ms. C. Troncos
Respondent function: Foreign market management secretary Date and time interview: 29 June 2006, 19:10 – 19:33
SQM (Chile)
Respondent name: Ms. Van den Eekhout
Respondent function: Director’s assistant Industrial and Chemical Products SQM Europe NV
Date and time interview: 30 June 2006, 11:00 – 11:12
