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Our research studies the international competitiveness of small and medium-sized enterprises (SMEs) in an emerging Latin-American country. Using a sample of 100 SMEs in Peru, we find that firms compete abroad with standardized products, which are conditioned by the host-country markets, human capital, and industry cooperation. However, the results show that the age and size of the firm are not determining factors in competing overseas. Our findings open a new agenda for policymakers when interpreting how they should promote and support Latin-American SMEs.

This paper aims to juxtapose two separate perspectives on CSR in terms of their ability to explain the cognitive alignment between managers and stakeholder on what constitutes the social responsibility of the focal firm, and to explain social performance. The first perspective is the stakeholder engagement one, which has historically characterized the debate on CSR. The second one focuses on the internal change processes required to integrate CSR in the firm’s operations. We leverage on data from 427 interviews, of which 209 with managers and 219 with stakeholders of 19 multinational firms in 8 sectors, to assess (a) the extent of cognitive alignment between managers and stakeholders on the conceptualization of CSR for the relevant firm, (b) which of the two theoretical perspectives is connected with the degree of cognitive alignment, and (c) which of the two is connected with the perception of corporate social performance (CSP). The data examined shows no evidence that the degree of sophistication in stakeholder engagement practices is connected with neither the magnitude of cognitive gaps, nor the level of CSP; whereas the degree of integration in internal operations is connected with both narrower cognitive gaps and higher CSP

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Purpose – The purpose of this paper is to develop an analytical framework that challenges the condescending view of multinationals of emerging countries. In this paper, it is showed that emerging multinational companies (EMNCs) developed valuable resources that leveraged their internationalization strategies. Design/methodology/approach – An exploratory approach was used to investigate the internationalization strategies of EMNCs. A qualitative study was built on secondary data sources, particularly analysis of cases of the internationalization of Latin American companies. Findings – The internationalization strategies deployed by EMNCs are similar to the strategies of traditional multinationals (firms of developed countries). Similarly, EMNCs exploit, acquire or defend their resources in foreign markets. Additionally, the selection of each strategy depends on the availability, transferability and substitutability of the resources involved in the internationalization. Research limitations/implications – The traditional approaches that study the role of resources in the internationalization of the EMNCs have some shortcomings. It is worth conducting additional research including the approach developed here to advance in the comprehension of the behavior of EMNCs. Practical implications – Managers must identify and develop key resources to invest abroad. Additionally, managers need to take into account the characteristics of the resources of their firms to select an adequate strategy abroad. Originality/value – This paper shows that EMNCs are not resource laggards. Consequently, theoretical and empirical evidence is provided to advance the development of comprehensive theories of the internationalization of EMNCs. This paper offers academics and practitioners with a new focus to analyze the internationalization of EMNCs which are recognized as a driving force of the global economy.

Over the past decade, multinationals (MNCs) have followed three main objectives while entering Latin America: efficiency seeking, growth seeking, and resource seeking. Efficiency seeking MNCs aim to reduce costs in their global production process through access to cheaper labor, and proximity to destination markets such as the United States. Growth seeking firms enter Latin American markets to grow and/or acquire new markets. They are by nature more dependent on the macroeconomic conditions in local markets for their success. Resource seeking firms enter Latin America in the search of minerals, metals, and hydrocarbons. This paper introduces the concept of “natural markets” to explain the relative successes of MNCs from different regions – Europe (mainly Iberian), USA, and Asia. ‘Natural markets’ for a MNC are defined as those markets sharing a common history or language or having a high level of physical proximity with the country of origin of the MNC. This paper proposes that a firm focusing on natural markets has a comparative advantage, and thus increases the probability of its success. The paper also draws upon the experiences of successful MNCs in Latin America to infer some lessons for East Asian MNCs wishing to operate in the region.

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