A critical assessment of Brazilian manufacturing competitiveness in foreign markets

Abstract

Purpose This study aims to examine the competitiveness of firms operating in the emerging economy of Brazil. This study examines the current perception of Brazilian business leaders regarding the level of competitiveness in various sectors of industrial activity and the country’s business environment. Design/methodology/approach Survey data were collected in a joint study developed by Brazilian School of Public and Business Administration (EBAPE) and the Brazilian Institute of Economics (IBRE). The population surveyed was composed of businessmen, managers and directors of Brazilian manufacturing firms. This survey was created based on a similar survey conducted by the Harvard Business School, which was also aimed at identifying the reasons behind national loss of competitiveness. Findings The results of the survey point out that the worsening competitive nature of companies operating in Brazil can be primarily attributed to the deterioration of its country-specific advantages and in particular those linked to government policies, services and bureaucratic procedures, all of which bear a negative impact on the country’s business environment. Research limitations/implications Future research should explore in more depth the specific types of initiatives that these firms have and are continuing to eagerly adopt with the aim of improving their domestic competitiveness and, namely, firm-specific advantages, whether it be by contributing to the improvement of the business environment as a whole, or by improving their own operations and management systems. Practical implications The main obstacles related to competitiveness are associated with the “Brazil Cost”, namely, the tax system, infrastructure, political system, labor laws and bureaucracy that do not appear to offer much room for maneuvering in terms of reducing these barriers in the short term. Managers not addressing these important input factors of competitiveness not only divert attention away from innovation and creativity but also could lead to more serious political, social welfare and economic implications in the global marketplace. Social implications This study helps to gain a better understanding of the initiatives that could and are being used to contribute to a fruitful discussion about leading public policies and government actions geared toward upgrading Brazil’s business environment and country competitiveness as a whole. Originality/value This research contributes to the understanding of the initiatives that could and are being used to improve firm competitiveness in Brazil. These initiatives contribute to a fruitful discussion about leading public policies and government actions geared toward upgrading Brazil’s business environment and country competitiveness as a whole.

Transition Paths of Brazil from an Agricultural Economy to a Regional Powerhouse: A Global Supply Chain Perspective

“…Agriculture, livestock, and mineral extraction, despite bei critical components of Brazil's economy, attract the least FDI, which could be due to th capital-intensive nature and higher perceived risks, or lower returns compared to t other sectors. This distribution underscores the evolving nature of Brazil's econom signaling a transition from traditional sectors like agriculture to more service-orient economic activities, and indicating where international investors are directing th The industrial sector consistently holds the second position, suggesting it also attracts a sizable portion of FDI, reflective of Brazil's manufacturing capabilities and potential for industrial growth [94]. Agriculture, livestock, and mineral extraction, despite being critical components of Brazil's economy, attract the least FDI, which could be due to their capitalintensive nature and higher perceived risks, or lower returns compared to the other sectors.…”

“…As FDI inflows have increased, too has the proportion of investment in services, underscoring the sector's role as primary beneficiary of foreign investment and a contributor to Brazil's econom diversification. The industrial sector consistently holds the second position, suggesting it also attra a sizable portion of FDI, reflective of Brazil's manufacturing capabilities and potential industrial growth [94]. Agriculture, livestock, and mineral extraction, despite bei critical components of Brazil's economy, attract the least FDI, which could be due to th capital-intensive nature and higher perceived risks, or lower returns compared to t other sectors.…”

Continuous improvement behaviors and impacts on innovation

“…There is a general lack of studies on this topic for developing countries (Lizarelli et al, 2021). Brazilian economic growth has been based on strong internal market growth and job creation over the past 20 years, but this can only be sustained if the country continues to diversify its manufacturing sector and become internationally competitive (Cyrino et al, 2017). Innovation and innovative knowledge are important for generating competitive advantages for Brazilian companies that could increase sales or reduce costs (Paula and Silva, 2020).…”

“…There is a general lack of studies on this topic for developing countries (Lizarelli et al , 2021). Brazilian economic growth has been based on strong internal market growth and job creation over the past 20 years, but this can only be sustained if the country continues to diversify its manufacturing sector and become internationally competitive (Cyrino et al. , 2017).…”

The trajectory of the ability to innovate and the financial performance of the Brazilian industry

“…The specific condition of the Brazilian case, which may serve as a comparison for other emerging countries, has been characterized by: low intensity of business investments in R & D (Cyrino et al, 2017), emphasis on directing investments to acquire machinery and equipment (Frank et al, 2016); lack of insertion of researchers, with master and doctorate degrees, in companies (Santos et al, 2014); little interaction between companies and universities and research institutes to generate innovation (de Moraes Silva et al, 2017). As the largest volume of expenditures on science, technology and innovation conducted by the country comes from the government and the interaction among triple helix agents (university, private sector and government) is limited, the aggregate results of innovation are modest (Cyrino et al, 2017). This environment may be similar to the context of many developing countries, which strive to get a competitive advantage from innovation.…”