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This paper aims to use Latin America as a laboratory to better understand the relationship between inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) (both in total as well as in regional flows) and also examine the moderating effect of trade openness on that relationship. Latin America is an ideal study context for this purpose because of the relative homogeneity of its countries, which reduces confounding effects and increases comparability.

This paper uses longitudinal panel regression models with moderation effects. Secondary data were gathered on IFDI (per country and per country-sector), OFDI (total per country and region-targeted per country) and on trade openness from 11 Latin American countries.

IFDI in natural resources is positively associated with OFDI in both overall total flows and regional flows. The effect of IFDI in manufacturing has a consistent negative effect on total OFDI. IFDI in services has positive effects on total OFDI. Additionally, trade openness moderates positively the relationship between total IFDI and both total OFDI and regional OFDI. As a consequence, the authors found evidence suggesting that the relation between IFDI and OFDI in Latin America is positively moderated by trade openness.

The authors explored the nature of the impact of IFDI on the capacity of the recipient country to compete abroad as expressed by its OFDI flows. Specifically, they elucidated whether trade openness can be considered a suitable mechanism for home country firms to leverage potential spillovers provided by foreign entrants.

This study aims to challenge the generic interpretation of Multilatinas as Latin American firms that have been able to internationalize because of highly competitive strategic capabilities. The authors test whether capabilities that international business researchers commonly associate with internationalization are necessary at different stages of the internationalization process to better understand the extent to which emerging market (EM) firms need to develop them.

International business research suggests a positive association between strategic capabilities and firm internalization. However, it remains unclear what specific capabilities are necessary and when they are necessary. These questions are particularly important in the context of the internationalization of firms from emerging economies, such as Latin America. The authors apply necessary condition analysis (NCA) on a sample of Latin American firms at different internationalization stages to test what strategic capabilities represent necessary conditions for becoming a Multilatina.

The findings suggest that only a few strategic capabilities are necessary for Latin American firms to become “Multilatinas”. While entrepreneurial orientation and marketing and sales capabilities represent necessary conditions, EM firms may internationalize even though other capabilities are developed to a lesser extent. The authors reflect on how shifts in local markets and technology drive the emergence of different types of Multilatinas.

Measuring strategic capabilities across multiple EM firms implies a risk that firm-specific aspects are not fully captured. While the authors focused on the comparative competitive strength of capabilities and took great care to minimize measurement error, the authors acknowledge possible bias. Also, while NCA does not require a minimum sample size, findings from our sample of firms from four countries may not generalize to the region or other EMs.

As a relatively new statistical technique, the use of NCA has spread rapidly. To the best of the authors’ knowledge, the linkage between organizational capabilities and firm internationalization has not been tested from a necessary conditions perspective yet. The reflections on the “Multilatina” concept based on the notion of EM firms as configurations of strategic capabilities inform current debates on EM multinational enterprises.

This paper aims to analyze how emerging market firms upgrade their capabilities by focusing on “uncommoditizing strategies” that enable them to achieve levels of international competitiveness beyond the comparative advantages of their home countries and serve markets with premium pricing, quality and reputation of products.

In this paper, the authors studied 18 Latin American companies across six countries. Latin America represents an ideal setting because many of these countries have traditionally developed using natural resource endowments, and their firms have tended to rely on these in their internationalization. To facilitate the analysis of each case and the comparisons across cases, the authors used the same analytical framework for the companies, identifying the sources of differentiation and cost efficiency strategies that enabled these firms to upgrade their capabilities and compete on the basis of premium pricing, quality and reputation.

The analysis identified a general framework that represents an abstraction of the actions taken by these companies over time. The proposed model consists of three main elements used to pursue uncommoditizing strategies: tropicalized innovation, global efficiency and coordinated control.

Recent research on emerging market firms has shown interest in how these firms upgrade their capabilities. This paper contributes to this stream of research by providing an overarching framework that not only bridged previous narrower studies but also explained how firms can develop uncommoditizing strategies to upgrade their capabilities. Further, this paper helps managers by providing a comprehensive yet succinct overview of the main strategies that they can use to help their firms to achieve international competitiveness.

Today, we are witnessing a wave of multinational corporations who seek to be recognized for being environmentally conscious, which can become a source of competitive advantage. But how many of them actually have the policies in place to achieve this? Drawing from the strategy literature, this paper aims to argue that firms who seek to achieve green reputation must align their policies in a way to achieve this goal.

This paper presents a framework that discusses the key elements of the corporate environmental management process, and then empirically examines the impact of green policy on green reputation among Fortune 500 US firms.

The findings support a positive significant relationship between green policy and green reputation, with environmental performance to partially mediate this relationship. Insights from this study highlight the importance of focusing on company-level green policy for building green reputation as well as for discriminating across the flux of corporations that all claim to be environmentally conscious or green.

First, the study is limited by the unavailability of environmental performance data at the subsidiary level, which, if incorporated, would yield a better specified model. Second, to strengthen the causal relationships examined in the models, time-series analyses would likely be useful. Third, other informal measures that could be incorporated can include other forms of corporate verbal communications, which include 10K reports as well as shareholder letters.

Given the increased flux of firms that are racing to be known as environmentally conscious firms, one can benefit from the use of an internal mechanism that can discriminate between rhetoric and action. Therefore, when differentiating between firms’ environmental consciousness, investors and key stakeholders should investigate more internal environmental firm policies, because they are likely to be more indicative of their actions.

This study uses a quantified assessment of companies’ actual environmental footprints, drawing from a cross-sector sample within the manufacturing industry. The secondary data used in this study are combined from a number of prominent data sources in corporate social responsibility/environmental management literature.

Ambient advertising is a unique, intimate and non-traditional form of communication between the product and the consumer; and uses all physical and environmental elements leading to stronger customer engagement. The purpose of this paper is to explore the innovations in ambient advertising including flash mob dancing, use of structures, posters, props, bus tickets, supermarket floors, shopping carts, bank receipts, animals, and other strange and unusual venues in developed economies (e.g. the USA) vs emerging economies (e.g. India).

The research proposes relationship strength (R)-inherent drama (I)-prodigious execution (P) or R-I-P conceptual framework to measure ambient advertising and delves into the R-I-P constructs of ambient advertising.

The results of Study 1 demonstrate that consumers’ global consumption orientation positively influences their attitudes toward ambient advertising. Results from Studies 2 and 3 exhibit interesting comparisons of innovations in ambient advertising between the USA and India; which improves understanding of globalization of ambient advertising in both developed and emerging economies. Relationship strength (R) between the product and the customer strengthens ad believability in both developed and emerging economies; while inherent dramatic surprise (I) displays contrasting results for developed and emerging economies. Prodigious execution (P) results in ad irritation for developed economies while it has no impact for emerging economies.

Overall R-I-P constructs of ambient advertising strengthen brand and ad attitudes and purchase intentions. The research has strong implications for advertising innovations in the USA vis-à-vis India, and demonstrates stronger implications of advertising internationalization across developed and emerging economies.

The research is valuable in the context of emerging and developed economies of the world with respect to ambient advertising. The research explores the trends in ambient advertising and develops measures for testing perceptions of consumers in various world markets toward ambient advertising. The world economies exhibit varying levels of acceptance and appreciation to the global emerging advertising trends, and this presents a huge challenge to the companies worldwide.

The purpose of this paper is to combine notions from the POST Model of Economic Geography and Learning Theory from International Business to study how firms may enhance their responsiveness to institutional processes and changes through different forms of international learning. Focussing on one form of institutional changes, namely pro-market reforms, the paper analyzes how firms may boost the potential benefits from such changes through international strategies that increase their access to knowledge spillovers and absorptive capacity. These strategies include international product diversification, enhancing innovation capabilities, informal institutional exposure, accumulated internationalization knowledge, and overall experiential knowledge.

The hypotheses are tested using generalized least squares models with AR(1) panel-specific autocorrelation and heteroskedasticity correction. Based on the preliminary analyses performed in these studies, the author also executes a Hausman test, Bartlett’s test, and James/Alexander’s test. The results of these analyses indicate that the use of random effects is appropriate; that moderating effects are present; and that multivariate analyses using these moderators are suitable, respectively.

The results indicate that pro-market reforms have a positive and significant effect on the profitability of firms from developing countries. Furthermore, they provide support for the positive moderating effects of international product diversification, innovation capabilities, informal institutional exposure, accumulated internationalization knowledge, and overall experiential knowledge. Together, these findings suggest that through their international strategic decisions, MNEs can enhance their access to knowledge and become more responsive to institutional changes in their home market.

This paper contributes to the economic geography literature by linking the POST Model with the classification of types of knowledge from Learning Theory. The paper analyzes how characteristics of place, organization, space, and time play a different role for each of the three basic types of knowledge that is relevant for international firms: institutional, business, and internationalization. Furthermore, the paper contributes to the literature on reforms and firm profitability by delving deeper into the moderating effect of strategic decisions on the relationship between reforms and firm performance. This allows us to have a deeper comprehension of how various sources of international learning may enhance the responsiveness of firms to institutional changes.

The paper provides several important contributions to the international strategy literature. First, it contributes to Learning Theory by combining it with the POST Model of Economic Geography to study how each of the three sources of knowledge (and their subcomponents) can be further broken down into factors of place, organization, space, and time. Second, it contributes to the literature of institutional change by studying how knowledge acquired through vastly different means can provide firms with sources of competitive advantage over other local competitors when responding to institutional changes in their home market. Third, it contributes to the literature on reforms and profitability by studying five novel moderators of this relationship.