AIB 2012 Conference Proceedings - Academy of International ...

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global competition and corresponding strategy. We use an inductive-approach to conduct historical-analysis of
companies that originate from key emerging markets viz India and China. We examine how EMFs devise
strategies to circumvent the institutional voids in their home markets and develop routines and key capabilities
that lead to their competitive advantage when they transition to developed nations. Methodologically, the paper
illustrates the usefulness of semantic network-analysis tools used to conduct a content analysis. We introduce a
new concept - EMFs' ability to ‘Lick the Dirt' suggesting that the disadvantages previously suffered from their
home markets can become an advantage when EMFs venture overseas, especially to the developed nations.
(For more information, please contact: Tanvi Kothari, University of Wisconsin Oshkosh, USA:
kothari.t@gmail.com)
Internationalization of Brazilian Franchising Networks: Degree of Internationalization and Current Status
Livia Lopes Barakat, Fundação Dom Cabral
Sherban Leonardo Cretoiu, Fundação Dom Cabral
Mayara Ximenes Dalbem, Fundação Dom Cabral
Over the past decade, Brazilian companies have not only increased foreign direct investment but also the
participation in international markets via franchising agreements due to the expansion opportunities offered
globally, especially for those already adopting the strategy in the domestic market. An empirical study was
conducted with 15 Brazilian franchise networks regarding foreign agreements in the last three years. By
understanding the nature of their global activities we attempt to develop a measure of the degree of
internationalization. Furthermore, we present a panorama of their internationalization in terms of current status,
geographic dispersion and challenges faced when establishing foreign agreements. (For more information,
please contact: Livia Lopes Barakat, Fundação Dom Cabral, Brazil: liviabarakat@fdc.org.br)
EMs' Subsidiaries Competences as a Result of the Interplay between Culture and Global Mindedness
Germano Glufke Reis, FGV/EAESP
Maria Tereza Fleury, Fundação Getúlio Vargas
Afonso Carlos Correa Fleury, University of São Paulo
This paper looks at companies from an emerging economy with a strongly rooted local culture (and its
associated "managerial heritage") and asks what are the impacts of the development of a global mindedness. At
one side, there are traits such as uthoritarianism, tendencies towards hierarchisation and over-control on
subsidiaries; at the other, there is the emergence of global orientation, global knowledge, and global skills.
Through a survey with major Brazilian Multinationals' (BrMNs) and a multilevel approach, this research
investigates the influences of culture factors and global mindedness on the development of competences in
their subsidiaries. The results suggest that the level of global mindedness of the firm is positively related to
subsidiaries' competences development; culture factors, in turn, are negatively related to competences
development. The development of some specific competences also had statistically significant results:
organization, planning, marketing and sales, financial management, HR management, supply chain
management, and customer relationships management competences. As the capacity of developing
competences abroad may have an important role for BrMNs'international competitiveness, potential tensions
regarding the interplay between culture and global mindedness are an issue that should be managed. (For more
information, please contact: Germano Glufke Reis, FGV/EAESP, Brazil: germanoglufkereis@yahoo.com.br)
Institutional Change, Strategic Orientation and Dynamic Capabilities: A Multilevel Perspective on Chinese
Outward FDI
Ming Hua Li, Copenhagen Business School
The phenomenon of systematic institutional change in many developing countries can produce enduring
transformations in the strategic orientation and organization of domestic firms. Such changes may impact the
AIB 2012 Conference Proceedings
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