Post on 04-Dec-2021
Conferência: “Internacionalização das Empresas Portuguesas no
Domínio das TIC”20 de Outubro de 2009
Centro Europeu Jean Monnet
Prof. José Paulo Esperança ISCTE
Patrocínio: Patrocinadores Globais
InternacionalizarInternacionalizar ouou nãonãoInternacionalizarInternacionalizar: : eiseis a a QuestãoQuestão
JOSÉ P. ESPERANÇA
ISCTE/IUL
jose.esperanca@iscte.pt
Conferência Internacionalização das Empresas Portuguesas noDomínio das TIC, 20 de Outubro
SMALLER BUT NOT FLAT WORLD
BRIEF BIBLIOGRAPHY
ROOT, Franklin S. (1998), Entry Strategies for
International Markets, Jossey Bass Wiley, San
Francisco.
Bartlett, C. and S. Ghoshal (2000) "Transnational
Management", Addison Wesley.
Articles: COVIELLO, N. (2006) “The Network Dynamics of
International Joint Ventures”, journal of International
Business studies”, 37, pp. 713-731.
HENNART J.F. (1991) "Control in MNEs: The Role and
Price of Hierarchy", Management International
Review, pp. 71-96.
MARTINEZ, J., J. ESPERANÇA and J. de la TORRE
(2005) Organizational Change Among Emerging Latin
American Firms: From “Multilatinas” to
Multinationals, Management Research, Fall, N. 3 (3).
Oviatt, B. e P. Mcdougall (1995) “Global Start-ups:
Entrepreneurs on a Worldwide Stage”, Academy of
Management Journal, Vol. 9, N. 2, pp. 30-43.
PERLMUTTER, H. (2000) “The Tortuous Evolution of
the Multinational Corporation”, in Transnational
Management, by Bartlett and Ghoshal.
PORTER, M. (1986) “Changing Patterns of International
Competition”, California Business Review, Vol. 28,
pp. 9-40.
Contents
1.1.The Evolving Context of International BusinessThe Evolving Context of International Business
2.Strategies for Foreign Markets
3. Born Globals and Emerging Multinationals
FOREIGN INVESTMENT
FORMS OF FOREIGN INVESTMENT
� Foreign Direct Investment (FDI)
� Portfolio investment
MAIN FDI GOALS
� Access to markets
� Access to production factors
� Production efficiency
� Knowledge
� Political safety
TYPES OF FDI
GREEN FIELD INVESTMENT
� Typical of MNE’s with larger experience in foreign markets
ACQUISITION
� Preferred by firms at an early internationalization stage
� Avoids fostering competition, while enhancing the
concentration benefits
� Limits strategic consistency within the MNE
FDI VS. TRADE AND GDP
AVERAGE ANNUAL GROWTH RATES (70-97) – WORLD LEVEL
� FDI 7,7 %
� Trade 5,2 %
� GDP 2,6 %
Source: World Investment Report (UNCTAD)
TRIAD – FDI FLOWS (1999)
Source: World Investment Report 2001 (UNCTC)
European Union
JapanUSA
554 512
48
177
17 76
The World Population and Income Pyramid
Emerging Markets are Climbing the Technology Ladder
Source: Federico Bonaglia, OECD development Center, 2007
Modular product architectures and global innovation
networks (computer versus ipod)
Source: Dedrick and Kraemer (2007), “Globalization of Innovation: The Personal Computing Industry”
FDI INWARD STOCK (2005)
Source: World Investment Report 2006 (UNCTAD)
Ranking Country/Region Stock ($) Stock (%)
World 10.130,0 100,0%
1 United States 1.626,0 16,1%
2 United Kingdom 817,0 8,1%
3 France 601,0 5,9%
4 Hong Kong 533,0 5,3%
5 Germany 503,0 5,0%
6 Belgium 492,0 4,9%
7 Netherlands 463,0 4,6%
8 Spain 368,0 3,6%
9 Canada 357,0 3,5%
10 China 318,0 3,1%
28 Portugal 65,0 0,6%
(billions of $US dollars)
FDI STOCK FROM MIDDLE-INCOME COUNTRIES
Country 1990 2000 2005Annual Growth
1990-2005
World 1.791.092 6.471.435 10.671.889 12,64%
Spain 15.625 167.719 381.319 23,74%
Brazil 41.044 51.946 71.556 3,78%
Argentina 6.057 21.141 22.633 9,19%
Chile 154 11.154 21.286 38,90%
Portugal 900 19.552 44.457 29,69%
Mexico 2.672 8.273 28.040 16,97%
Hungary 197 1.280 6.604 26,38%
(millions of $US dollars)
Source: World Investment Report 2006 (UNCTAD)
BRIC and OECD average scores across the 12 pillars of the GCI (2009)
Fonte: Djankov, La Porta, e outros, WP 2001, “The Regulation of Entry
Complex Bureaucracy: France
Fonte: Djankov, La Porta, e outros, WP 2001, “The Regulation of Entry
Minimum Bureaucracy: New Zealand
Fonte: Djankov, La Porta, e outros, WP 2001, “The Regulation of Entry
Corruption and Bureaucracy
Contents
1.1.The Evolving Context of International BusinessThe Evolving Context of International Business
2.Strategies for Foreign Markets
3. Born Globals and Emerging Multinationals
THE MULTINATIONAL ENTERPRISE
DEFINITION:
� The MNE is a firm carrying out value adding activities in more
than one country
TYPES OF MULTINATIONAL ENTERPRISES
� Polycentric or Multidomestic
� Geocentric or Global
� Ethnocentric
� Regiocentric
Source: Casson, Perlmutter, Porter
FDI AND PRODUCT LIFE CYCLE - VERNON
Sales
Time
Phase I
New products are launched in the home market
Phase II
Expansion takes place in similar markets
Phase III
Low cost production are actively searched
Phase IV
Decline fosters concentration on low cost locations
TYPES OF MNEs
Source: Bartlett and Ghoshal
Global Integration(Global Enterprise, Japanese)
Worldwide Learning(International Firm, American)
Local Adaptation(MNE, European)
TRANSNATIONAL CORPORATION
Source: Bartlett and Ghoshal
Local Adaptation
Global Integration
Worldwide Learning
DECENTRALIZED FEDERATION
Source: Bartlett and Ghoshal (2004, Ch. 4)
Mainly financial
flows (capital out,
dividends back)
Loose, simple controls
(strategic decisions
decentralized)
COORDINATED FEDERATION
Source: Bartlett and Ghoshal (2004, Ch. 4)
Mainly knowledge
flows (technology
products,
processes,
systems)
Formal system controls (planning,
budgeting, replicating parent
company administrative system)
CENTRALIZED HUB
Source: Bartlett and Ghoshal (2004, Ch. 4)
Mainly flows of
goods
Tight, simple controls (key
strategic decisions made centrally)
ORGANIZATIONAL CHARACTERISTICS OF MNEs
DECENTRALIZED FEDERATION
COORDINATED FEDERATION
CENTRALIZED HUB
STRATEGIC APPROACH
KEY STRATEGIC CAPABILITY
CONFIGURATION OF ASSETS AND CAPABILITIES
ROLE OF OVERSEAS
OPERATIONS
Sensing and exploiting local opportunities
Knowledge developed and retained within each unit
Multinational
National responsiveness
DEVELOPMENT AND DIFFUSION OF KNOWLEDGE
Decentralized and nationally self-sufficient
Adapting and leveraging parent-company competencies
Knowledge developed at the center and transferred
to overseas units
International
Worldwide transfer of home country innovations
Implementing parent-company strategies
Knowledge developed and retained at the center
Sources of core competencies centralized,
others decentralized
Centralized and globally scaled
Global-scale efficiency
Global
Source: Bartlett and Ghoshal (2004, Ch. 4)
INTEGRATED NETWORK
Source: Bartlett and Ghoshal (2004, Ch. 4)
Distributed,
specialized
resources and
capabilities
Complex process of coordination and
cooperation in an environment of
shared decision making
Large flows of
components,
products, resources,
people and
information among
interdependent units
INTERNATIONAL JOINT VENTURES
Multinational Parent Company
Local Parent Company
International Joint Venture
Technology, Capital
Local Knowledge
Typical International Joint Venture
MOST VALUABLE BRANDS (2007)
Source: Business Week/Interbrand
1 Coca-Cola $65,32 Billion
2 Microsoft $58,71 Billion
3 IBM $57,09 Billion
4 General Electric $51,57 Billion
5 Nokia $33,70 Billion
6 Toyota $32,07 Billion
7 Intel $30,95 Billion
8 McDonald's $29,40 Billion
9 Disney $29,21 Billion
10 Mercedes-Benz $23,57 Billion
MOST VALUABLE BRANDS (2007)
Source: Business Week/Interbrand
11 Citi $23,44 Billion
12 Hewlett-Packard $22,20 Billion
13 BMW $21,61 Billion
14 Marlboro $21,35 Billion
15 American Express $19,64 Billion
16 Gillette $20,42 Billion
17 Louis Vuitton $20,32 Billion
18 Cisco $19,10 Billion
19 Honda $18,00 Billion
20 Google $17,84 Billion
MOST VALUABLE BRANDS (2007)
Source: Business Week/Interbrand
21 Samsung $16,85 Billion
22 Merrill Lynche $14,34 Billion
23 HSBC $13,56 Billion
24 Nescafé $12,95 Billion
25 Sony $12,91 Billion
26 Pepsi $12,89 Billion
27 Oracle $12,45 Billion
28 UPS $12,01 Billion
29 Nike $12,00 Billion
30 Budweiser $11,65 Billion
Contents
1.1.The Evolving Context of International BusinessThe Evolving Context of International Business
2.Strategies for Foreign Markets
3. Born Globals and Emerging Multinationals
New MNEs versus Traditional MNEs
Source: AMP, 2009,
Expansion Paths
Motivations for FDI
Intangible Assets
THE MULTINATIONAL ENTERPRISE
Source: Martinez et al (2005)
Local
Environment
Domestic
Company
“Professionalization”
Process
International
Environment
Emerging
MNC
Internationalization
Process
Global
Environment
Experienced
MNC
Consolidation /
Rationalization
Process
THE EMERGING MULTINATIONAL
Source: Martinez et al (2005)
Inte
grat
ion o
f A
ctiv
itie
s
Localization of Activities
Low High
Low
HighExperienced
MNCs
Greater use of Coordination and Control Mechanisms
Emerging MNCs
Minor use of Coordinating Mechanisms
THE EMERGING MULTINATIONAL
Source: Martinez et al (2005)
MLs MNCs
Number of Employees Worldwide n 11,290 55,114 ***
Total Global Sales Millions of $US dollars 1,238 13,956 ***
Sales in Home Region % 76 58 ***
R&D Intensity Low(1) - High (7) 2,10 3,63 ***
Rate of Introduction of New Products Low(1) - High (7) 3,20 3,81 *
Homogeneity of Demand Dissimilar(1) - Homogeneous(7) 4,55 5,07 *
Domestic Competition Local Firms(1) - Subsidiaries MNCs(7) 3,57 4,52 **
*p<0,1; **p<0,05; ***p<0,01
MeanT-Test
SignificanceVariables Scale
THE EMERGING MULTINATIONAL
Source: Martinez et al (2005)
MLs MNCs
Locus of Decision Making (a) Autonomy(1) - Centralization(7) 3,72 3,99 -
Formalization of Corporate Relations Very Low(1) - Very High (7) 4,18 4,79 *
Strategic Planning and Budgeting Annual Budget(1) - Complex(7) 4,13 4,68 *
Corporate Control and Reporting (b) Inexistent/Annual(1) - Frequent(7) 2,31 3,41 ***
Coordination Mechanisms (c) Rare(1) - Frequent(5) 3,12 3,18 -
Socialization or Acculturation Diverse Culture(1) - Common Culture(7) 5,18 4,96 -
Regional Coordination (d) Increased(1) - Decreased(7) 2,27 2,04 **
*p<0,1; **p<0,05; ***p<0,01
MeanT-Test
SignificanceVariables Scale
PORTUGUESE TRANSNATIONAL CORPORATIONS
Amorim Sonae
Cimpor Logoplaste
Caixa Geral de Depósitos Grupo Pestana
Millennium BCP Portugal Telecom
BES YDreams
GRUPO AMORIM
Amorim Capital, SGPS, S.A. 67,791%
Luxor, SGPS, S.A. 2,308%
Millennium BCP - Investimentos, S.A. 2,960%
Portus Securities, Sociedade Corretora, S.A. 5,564%
Others 21,377%
Shareholder Structure - 2007
Portugal Denmark Hungary Brazil Morocco
Spain Germany Italy Argentina Algeria
France Poland Bulgaria Chile Tunisia
UK Switzerland Moldavia Russia South Africa
Netherlands Austria USA China Australia
Countries
Source: www.amorim.com
CIMPOR
Production % Production %
Portugal 7,0 36,8% Egypt 3,8 20,0%
Spain 2,6 13,7% South Africa 1,0 5,3%
Mozambique 0,8 4,2% Cape Verde - -
Morocco 1,2 6,3% Turkey 2,5 13,2%
Brazil 5,8 30,5% China 1,8 9,5%
Tunisia 1,6 8,4%
(millions of tons/year) (millions of tons/year)
Source: www.cimpor.pt
CAIXA GERAL DE DEPÓSITOS
Portugal USA
Germany Mexico
Andorra Venezuela
Belgium South Africa
Spain Cape Verde
France Mozambique
Luxembourg S. Tomé e Principe
Monaco China
Norway India
UK Timor
Sweden
Switzerland
Brazil
Countries
Source: www.cgd.pt
MILLENNIUM BCP
Poland Bank Millennium
Greece Millennium Bank
Turkey Millennium Bank
Mozambique Millennium Bim
Angola Banco Millennium Angola
USA Millennium BCP
Countries
Workers 1,060%
Others (Individuals) 17,320%
Others (Companies) 8,410%
SGPS 16,940%
Portuguese Organizations 19,610%
Foreign Organizations 36,66%
Shareholder Structure - 2007
Source: www.millenniumbcp.pt
BES
Bespar 40,000%
Crédit Agricole 10,800%
Portugal Telecom 4,000%
Bradesco 3,100%
Others 42,100%
Shareholder Structure - 2007
Source: www.bes.pt
SONAE
Source: www.sonae.pt
- Portugal - Portugal
- Spain
- Greece
- Germany
- Italy
- Brazil
- Portugal - Portugal
- France
- Brazil
LOGOPLASTE
Portugal 17 Factories
Spain 5 Factories
United Kingdom 6 Factories
France 4 Factories
Czech Republic 1 Factory
Countries
Source: www.logoplaste.com
GRUPO PESTANA
Portugal 22 Hotels
Brasil 8 Hotels
Mozambique 3 Hotels
South Africa 1 Hotel
Cape Verde 1 Hotel
Argentina 1 Hotel
S. Tomé e Principe 1 Hotel
Countries
Source: www.pestana.com
PORTUGAL TELECOM
Angola (Unitel) 517 millions of Euros
Morocco (Meditel) 425 millions of Euros
Namibia (MTC) 116 millions of Euros
Cape Verde (CVT) 63 millions of Euros
S. Tomé e Principe (CST) 9 millions of Euros
Macau (CTM) 209 millions of Euros
Timor (Timor Telecom) 18,5 millions of Euros
Brazil (UOL) 176 millions of Euros
Countries - Revenues (2006)
Telefónica 9,96%
Espirito Santo Group 7,77%
Brandes Investments Partners 7,41%
Onging Strategy Investments 5,35%
CGD Group 5,11%
Telmex 3,41%
Paulson & Co. Inc. 2,34%
Fidelity 2,09%
Barclays Group 2,06%
Capital Group Companies 2,04%
Visabeira Group 2,01%
Others 50,45%
Shareholder Structure
Source: www.portugaltelecom.pt
YDREAMS
CLIENTS
�Adidas
�BBC
�Chelsea FC
�Compal
�European Union
�Portugal Telecom
�Rock in Rio
�SICSource: www.ydreams.com
In 1987, two frinds, Robert and Fernando, launched the first Nando’s restaurant ina poor quarter of Johannesburg.
Nando´s – The Origin
Nando´s – Tradition
Nando´s operates in 33 countries from 5 Continents
Nando´s – Expansion
InternacionalizarInternacionalizar ouou nãonãoInternacionalizarInternacionalizar: : eiseis a a QuestãoQuestão
OBRIGADO!
Conferência Internacionalização das Empresas Portuguesas noDomínio das TIC, 20 de Outubro