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In this study, the authors argue that there is more than meets the eye on the effects over postacquisition performance and diversification. This study aims to propose that the conditions that allow higher returns are dependent on the institutional context. The authors suggest that diversification strategies differ in their impact on postacquisition performance when moderated by the institutional inefficiencies of economies.

This research is based on a quantitative approach. The authors statistically test the hypotheses based on multiple regression analysis.

Results show a negative moderating effect of the institutional inefficiencies of the target country on the relationship between the diversification decisions of the firm and its postacquisition performance. So that Latin American firms that perform Cross-border acquisitions with higher degrees of diversification are related to worse performance. However, the degree of institutional inefficiencies negatively moderates this relation, attenuating the negative effects of diversification over performance.

Although past research has shown that economies with high institutional inefficiencies can benefit from higher levels of diversification, no study has considered the impact of the institutional inefficiencies when discussing many economies, to authors’ acknowledgment. The authors provide evidence that, in the case of Latin American firms, diversification reduces performance; however, the degree of institutional inefficiencies negatively moderates this relation.

Neste estudo, argumentamos que há mais do que aparenta sobre os efeitos sobre o desempenho e a diversificação pós-aquisição. Propomos que as condições que permitem maiores retornos dependem do contexto institucional. Sugerimos que as estratégias de diversificação diferem em seu impacto no desempenho pós-aquisição quando moderadas pelas ineficiências institucionais dos países.

Esta pesquisa é baseada em uma abordagem quantitativa. Testamos estatisticamente as hipóteses com base na análise de regressão múltipla.

Os resultados mostram um efeito moderador negativo das ineficiências institucionais do país-alvo na relação entre as decisões de diversificação da empresa e seu desempenho pós-aquisição. Assim, firmas latino-americanas que realizam F&As com maior grau de diversificação estão relacionadas a pior desempenho. No entanto, o grau de ineficiências institucionais modera negativamente essa relação, atenuando os efeitos negativos da diversificação sobre o desempenho.

Embora pesquisas anteriores tenham mostrado que economias com altas ineficiências institucionais podem se beneficiar de níveis mais altos de diversificação, nenhum estudo considerou o impacto das ineficiências institucionais ao discutir diversos países. Fornecemos evidências de que, no caso das empresas latino-americanas, a diversificação reduz o desempenho, porém, o grau de ineficiências institucionais modera negativamente essa relação.

En este estudio, argumentamos que hay más en los efectos sobre el desempeño posterior a la adquisición y la diversificación de lo que parece. Proponemos que las condiciones que permiten mayores rendimientos dependen del contexto institucional. Sugerimos que las estrategias de diversificación difieren en su impacto sobre el desempeño posterior a la adquisición cuando se ven atenuadas por las ineficiencias institucionales del país.

Esta investigación se basa en un enfoque cuantitativo. Probamos estadísticamente las hipótesis con base en análisis de regresión múltiple.

Los resultados muestran un efecto moderador negativo de las ineficiencias institucionales en el país objetivo sobre la relación entre las decisiones de diversificación de una empresa y su desempeño posterior a la adquisición. Así, las firmas latinoamericanas que realizan M&A con un mayor grado de diversificación se relacionan con un peor desempeño. Sin embargo, el grado de ineficiencias institucionales modera negativamente esta relación, atenuando los efectos negativos de la diversificación sobre el desempeño.

Investigaciones anteriores han demostrado que las economías con altas ineficiencias institucionales pueden beneficiarse de niveles más altos de diversificación, ningún estudio ha considerado el impacto de las ineficiencias institucionales cuando se analiza de varios países. Proporcionamos evidencia de que, en el caso de las empresas latinoamericanas, la diversificación reduce el desempeño, pero el grado de ineficiencias institucionales modera negativamente esta relación.

Using an institution-based view, this study aims to conceptualize how sub-national institutional characteristics are likely to explain location choice of multinationals’ research and development (R&D) subsidiaries.

In a conceptual paper, this study explores specific institutional facets of the regional environments within a country that are capable of explaining, at least in part, the location choices of multinational corporations’ R&D subsidiaries.

This study thus explores the more nuanced influences of the institutional environments at a subnational level and develops propositions to explain location choices based on the differences of the institutional environments.

This study contributes to international business theory by incorporating a location-specific analysis that contrasts to the usual country-level observation on the determinants of firms’ location decisions.

This study aims to explore how the absorptive capacity of emerging market multinationals (EMNEs) facilitates increased acquirer performance in industry exploration and technology exploration cross-border acquisitions (CBAs).

The research context for this study is Brazilian EMNEs and their CBAs. The final database contains 101 CBAs.

The authors find that industry exploration strategies negatively affect financial performance, but technology exploration strategies have a positive effect. The acquirer’s absorptive capacity can exacerbate the negative effects, except in instances of technology exploration strategies, where there is a demonstrable benefit from the acquirer’s absorptive capacity.

The study contributes first by providing a more nuanced understanding of the effects of absorptive capacity on postacquisition performance, depending on the type of knowledge explored. Second, by drawing on EMNE learning perspectives, the authors demonstrate the versatility of absorptive capacity in emerging markets.

This study aims to investigate the influence of resource slack on the decline of Brazilian companies, with a particular focus on the moderating role of environmental dynamism. The authors specifically examine three types of resource slack: available, potential and recoverable. These represent surplus resources that exceed what is necessary for the organization’s basic operations. The role of environmental dynamism, characterized by rapid changes in customer preferences, technologies and competitive dynamics, is considered as a moderating factor in this relationship.

The authors used data from Brazilian companies spanning from 1997 to 2008. The research sample was composed using the matching-pairs method, which included a group of publicly traded companies that experienced decline (43 companies) and a group that did not (40 companies) within the specified timeframe.

Findings of this study indicate that the presence of available slack, being more liquid resources, decreases the likelihood of organizational decline. Furthermore, the moderation effect of potential resource slack can mitigate decline in companies operating in dynamic industries.

This research provides valuable insights into the impact of slack resources on potential organizational turnarounds. Given the relative scarcity of resources in these companies compared to those in developed countries, whether they be financial, human or technological, the study highlights the unique influence of slack in a less explored institutional environment. This research underscores the importance of examining the decline of Brazilian companies from a broader perspective, emphasizing that decisions regarding resource use can have significant implications on a company’s trajectory, either amplifying or mitigating its decline.

¿Cuál es el impacto del slack de recursos en el declive de grandes empresas brasileñas? Para responder a esta pregunta, hemos probado hipótesis por separado para tres tipos de salck de recursos: disponible, potencial y recuperable. Estos excedentes consisten en recursos en exceso más allá de lo necesario para mantener la organización funcionando.

Desarrollamos un estudio empírico cuantitativo y longitudinal con datos de empresas brasileñas de 1997 a 2008. Adoptamos el método de pares emparejados, componiendo la muestra de investigación con un grupo de empresas cotizadas en bolsa que declinaron (43 empresas) y otro que no declinó (40 empresas) en el período de tiempo.

Encontramos que la disponibilidad de recursos más líquidos reduce la posibilidad de declive. El efecto de moderación en el slack de recursos potenciales para empresas en industrias dinámicas puede mitigar el declive.

Esta investigación contribuye a una mejor comprensión del efecto del excedente en posibles recuperaciones. Extender los estudios de recursos excedentes al contexto de empresas brasileñas mostró la influencia que el excedente ejerce en un ambiente institucional relativamente menos explorado. Ya sea financiero, humano o tecnológico, la escasez de recursos es más pronunciada que en empresas de países desarrollados. Esta investigación llama la atención sobre el hecho de que la declinación de empresas brasileñas se analiza desde una perspectiva más amplia. Las decisiones sobre cómo la empresa usa sus recursos pueden afectar positiva o negativamente la declinación de las empresas, reforzando la importancia de discutir esta relación.

A Qual é o impacto da folga de recursos no declínio de grandes empresas brasileiras? Para responder a essa pergunta, testamos hipóteses separadamente para três tipos de folga de recursos: disponível, potencial e recuperável. Essas folgas consistem em recursos além do necessário para manter a organização funcionando.

Desenvolvemos um estudo empírico quantitativo e longitudinal com dados de empresas brasileiras de 1997 a 2008. Adotamos o método de pares combinados, compondo a amostra de pesquisa com um grupo de empresas de capital aberto que declinaram (43 empresas) e outro que não declinou (40 empresas) no período.

Descobrimos que a disponibilidade de recursos mais líquidos reduz a possibilidade de declínio. O efeito moderador na folga de recursos potenciais para empresas em indústrias dinâmicas pode mitigar o declínio.

Esta pesquisa contribui para uma melhor compreensão do efeito da folga sobre possíveis recuperações. A extensão dos estudos de folgas de recursos para o contexto de empresas brasileiras mostrou a influência que a folga exerce em um ambiente institucional relativamente menos explorado. Seja financeiro, humano ou tecnológico, a escassez de recursos é mais pronunciada do que em empresas de países desenvolvidos. Esta pesquisa chama a atenção para o fato de que o declínio de empresas brasileiras é analisado sob uma perspectiva mais ampla. Decisões sobre como a empresa usa seus recursos podem afetar positiva ou negativamente o declínio das empresas, reforçando a importância de discutir essa relação.

Doctoral programs are primarily intended to train new professors and researchers to take positions requiring research competency. This paper aims to observe the scientific production of 734 Brazilian new PhDs in management and the possible link between the scientific output of the graduates and doctoral program rank.

Methodologically, the authors built a database collecting the journal publications of the first six years after doctoral degree of all PhDs in management graduated by Brazilian doctoral programs during the period of 1998-2008. The authors use cluster and descriptive analysis to explore PhD publication.

Results show a great disparity of productivity, where 10 per cent of all new PhDs account for most of the Brazilian research productivity, while most of the PhDs have a very low performance – and that the CAPES (the Brazilian institutional system) qualification of doctoral programs is not a good predictor of the performance of the future graduates. Results are discussed to understand this productivity gap among researchers in a context of a developing country where support institutions are working to improve quantity and quality of publication.

The results are useful for recruiters that need to decide between hiring new PhDs with low productivity graduated from high-ranked programs or new PhDs with high productivity from programs with more modest ranking. At least in part, the authors’ results question the real impact that the doctoral program’s prestige has on the performance of its graduates.

There are implications for the future candidates to a management PhD program, for the Directors of these programs and for the institutional agencies that regulate and promote science and that establish the prevailing rules and norms that researchers and institutions follow.

The results are adamant in pointing out that there is a small group of highly productive new PhDs – that the authors called “stars”. Generally speaking, they may find these “star” new PhDs in several doctoral programs. They have also found that some of the new PhDs have a relatively higher level of international papers published, but not necessarily a larger volume of publications. Meanwhile, most PhDs present a very low level of performance. This has important contributions to the way they perceive the doctoral education in management, especially in Ibero-America, revealing insights about the quality of PhDs and PhD courses.

Cultural distance can be a challenge for internationalization. However, in some instances, it is possible that different cultures could represent a benefit for multinational enterprises (MNEs) from emerging contexts. Drawing on the knowledge-based view (KBV), the authors propose that greater cultural distances lead to benefits for multinationals seeking to absorb new knowledge overseas.

The authors performed ordinary least squares regressions with moderation tests over a database containing 101 cross-border acquisitions to test the study’s hypotheses. The acquisitions were performed by Brazilian firms between 1995 and 2015, targeting 24 host countries.

The study’s results indicate that cultural distance positively affects the firm's post-acquisition performance and that absorptive capacity moderates these results, improving the positive effect. The study suggests that cultural diversity is an asset for the multinationals in question.

When deciding to invest in a foreign country, managers should consider this cultural diversity as one more value creation driver, especially if the firm has well-developed innovation capabilities.

The study’s findings contribute to the international business literature providing further evidence that emerging markets multinationals can create value in acquisitions through the firm's abilities to exploit cultural asymmetries. Thus, the authors also emphasize that absorptive capacity plays a strategic role in multinational's international strategies.