International expansion for knowledge acquisition or knowledge acquisition for international expansion?

Abstract

Purpose Starting from the knowledge-based view as a theoretical perspective, this study aims to examine how an emerging market multinational enterprise (EMMNE) engages in reverse knowledge transfer (RKT) processes and how such processes are managed by headquarters. Therefore, this paper captures the perspective of top management concerning RKT and the processes used to create, transfer and integrate knowledge. Design/methodology/approach The study uses a longitudinal design based on the case method of investigation. The case selected for the study was a Brazilian company theoretically sampled for being a domestically, regionally and globally important, information-rich company that operates in an industry in which technology plays a crucial role. The company was also selected for having had asset-seeking motives in at least some of its foreign market entries and for having successfully absorbed foreign-acquired capabilities. Findings The study provides counterfactual evidence to the springboard perspective, considering timing and speed of the internationalization and catch-up processes and the size of acquisitions. The study also highlights differences to other emerging market multinational enterprises, concerning the internationalization trajectory and catch-up moves, and to traditional MNEs, regarding RKT challenges and practices. Research limitations/implications The main limitations of the study relate to the case study method, which does not allow for statistical generalization, although it does support analytical generalization. Originality/value The study contributes to the literature by shedding light on the process by which a Latin American multinational firm developed technological capabilities to compete globally, focusing on the symbiotic, self-nurturing relationship between internationalization processes and technology acquisition and integration processes. Moreover, the work provides novel theoretical insights regarding timing, location, size and execution of the RKT activities. Finally, the paper contributes to the understanding of the relational aspects of the RKT process by focusing on building human relationships as the major force behind knowledge integration and examining the resistance of the acquired companies from developed markets to adopt the parent company’s best practices, or to contribute to its integrated knowledge, when the parent company is an EMMNE.

A value creation perspective on international business in Latin America: directions for differentiation between emerging market multinationals

“…Next, we identify the salient characteristics of value creation and capture in Latin America and the implications of our proposed perspective for distinguishing the region from other emerging market contexts in terms of the dynamics of international business. We conclude with a brief presentation of the papers by Kogut et al (2020), Cavallo et al (2019) and Puig et al (2020), and highlight how the conclusions of each paper relate to our focus on value creation.…”

“…Natural resource-driven internationalization further exacerbates such limited organizational learning, as foreign subsidiaries fulfill commercialization functions that do not necessarily allow for improved extraction or production methods in the domestic market. Finally, compared to Chinese MNCs that actively pursue knowledge transfer from subsidiaries to headquarters (Fu et al, 2018), Latin American firms repatriate acquired knowledge to their headquarters to a lesser extent because domestic knowledge bases and innovation systems may be less developed (Kogut et al, 2020).…”

“…The papers in this special issue of the Multinational Business Review reflect this contextspecific approach that allows for subjectivity in how value is defined and how such value may Differentiating between EMNCs: Latin America be captured. The paper by Kogut et al (2020) describes how WEG, a Brazilian industrial engineering MNC, has developed technological capabilities over time to compete internationally. Contrary to the large-scale acquisitions aimed at reverse knowledge transfer, as suggested by the springboard perspective Tung, 2007, 2018), the authors show how WEG engaged in a gradual approach characterized by frequent small-scale acquisitions and embedding the firm in international innovation networks.…”

Technology acquisitions as a supporting tool for improving companies' innovative potential

“…U drugoj fazi razvijanja tehnoloških sposobnosti, uspostavila je partnerstvo sa inostranim univerzitetima i istraživačko-razvojnim (I&R) centrima i izvršila akviziciju na stranom tržištu radi pokretanja proizvodnje. U poslednjoj fazi ostvarivanja superiornih tehnoloških sposobnosti, izvršila je preuzimanje inostrane high-tech kompanije u nastojanju da postane jedna od tri vodeće kompanije u sektoru u kome posluje (Kogut, de Mello & Rocha, 2019).…”

“…Akvizicije mogu podstaknuti nove organizacione modele i olakšati pristup istraživačkim i inovacijskim kapacitetima drugih preduzeća, poboljšavajući bazu znanja preduzeća-kupca i omogućavajući mu pristup novim tehnologijama. Preduzeća-kupci ostvaruju pristup novom, vrednom znanju, koje kada se Slika 1 Fazno unapređenje i razvijanje tehnoloških sposobnosti multinacionalne kompanije Izvor: Autori, prema Kogut et al, 2019 kombinuje sa sopstvenim znanjem može generisati nove inovacije (Cefis & Marsili, 2015).…”