Risk Perception in the Internationalization of Brazilian Companies: An Analysis in Different Entry Modes
Articles
Ronaldo de Oliveira Santos Jhunior
University of Sao Paulo, Brazil
https://orcid.org/0000-0003-0867-7916
Gustavo Abib
Federal University of Parana, Brazil
https://orcid.org/0000-0002-8768-9669
Fabrício Stocker
University of Sao Paulo, Brazil
https://orcid.org/0000-0001-6340-9127
Published 2021-05-20
https://doi.org/10.15388/omee.2021.12.50
PDF
HTML

Keywords

risk
risk perception
entry modes
internationalization process

How to Cite

Santos Jhunior, R. de O., Abib, G. and Stocker, F. (2021) “Risk Perception in the Internationalization of Brazilian Companies: An Analysis in Different Entry Modes”, Organizations and Markets in Emerging Economies, 12(1), pp. 106–130. doi:10.15388/omee.2021.12.50.
Crossref
Scopus
Google Scholar
Europe PMC
Vol. 12 No. 1 (2021)

Risk Perception in the Internationalization of Brazilian Companies: An Analysis in Different Entry Modes

Abstract

The existence of risks is a premise in business-related matters, mainly in the exploration of international opportunities. Organizations seeking to operate abroad are potentially more susceptible to the risks that exist internationally. This study follows the behavioral approaches to internationalization and conceptual ideas about risk and risk perception in international business. The main goal is to understand how the risk perception of managers in Brazilian companies with different entry modes is configured. In this qualitative research, a multiple case study was carried out. The data collection techniques established were the analysis of documents and the performance of semi-structured interviews with managers responsible for the internationalization processes of six Brazilian companies. Regarding the risks inherent to these processes, there was a greater emphasis on country/political risk factors, followed by monetary risk. The risks perceived with greater evidence, considering the entry modes addressed, are also presented for a better understanding of the results.

PDF
HTML

References

Acedo, F. J., & Jones, M. V. (2007). Speed of internationalization and entrepreneurial cognition: Insights and a comparison between international new ventures, exporters and domestic firms. Journal of world Business, 42(3), 236-252.
Agarwal, S., & Ramaswami, S. N. (1992). Choice of foreign market entry mode: Impact of ownership, location and internalization factors. Journal of International business studies, 23(1), 1-27.
Ahmed, K., & Bebenroth, R. (2019). Acquisition behavior of emerging versus developed market multinationals. Organizations and Markets in Emerging Economies, 10(1), 9-30.
Almeida, A. (2007). Internacionalização de empresas brasileiras: perspectivas e riscos. Elsevier.
Alon, I., & Herbert, T. T. (2009). A stranger in a strange land: Micro political risk and the multinational firm. Business Horizons, 52(2), 127-137.
Amato Neto, J. (2008). Redes de cooperação produtiva e clusters regionais: oportunidades para as pequenas e médias empresas. São Paulo: Atlas.
Aven, T., & Renn, O. (2009). On risk defined as an event where the outcome is uncertain. Journal of risk research, 12(1), 1-11.
Bačík, R., Štefko, R., & Gburová, J. (2014). Marketing pricing strategy as part of competitive advantage retailers. Editorial Board, 9(4), 602.
Borini, F. M., Ribeiro, F. C. F., Coelho, F. P., & Proença, E. R. (2006). O prisma da internacionalização: um estudo de caso. Revista de Administração FACES Journal, 5(3).
Bouncken, R. B., Cesinger, B., & Kraus, S. (2014). The role of entrepreneurial risks in the intercultural context: a study of MBA students in four nations. European Journal of International Management, 8(1), 20-54.
Brouthers, K. D. (1995). The influence of international risk on entry mode strategy in the computer software industry. MIR: Management International Review, 7-28.
Brouthers, K. D. (2002). Institutional, cultural and transaction cost influences on entry mode choice and performance. Journal of international business studies, 33(2), 203-221.
Brustbauer, J. (2016). Enterprise risk management in SMEs: Towards a structural model. International Small Business Journal, 34(1), 70-85.
Cabedo, J. D., & Tirado, J. M. (2004). The disclosure of risk in financial statements. In Accounting Forum, 28 (2), 181-200.
Carneiro, J., & Dib, L. A. (2007). Avaliação comparativa do escopo descritivo e explanatório dos principais modelos de internacionalização de empresas. Revista Eletrônica de Negócios Internacionais (Internext), 2(1), 1-25.
Carvalho, C. A. S., & Dib, L. A. R. (2013). Reconciliando o Modelo de Uppsala com a perspectiva de networks: revisão crítica e integrativa. Revista de Administração FACES Journal, 12(2).
Cavusgil, S. T., Knight, G., Riesenberger, J. R. (2010). Negócios internacionais: estratégia, gestão e novas realidades. São Paulo: Pearson.
Coelho, D. B., & Oliveira Junior, M. D. M. (2016). A internacionalização de empresas na agenda governamental contemporânea de desenvolvimento: reflexões críticas e analíticas para os negócios internacionais. Cadernos EBAPE. BR, 14(SPE), 527-550.
Costa, L. P. S, & Figueira, A. C. R. (2017). Political risk and internationalization of enterprises: a literature review. Cadernos EBAPE. BR, 15(1), 63.
Cruz, C. B. B., Floriani, D. E., and Amal, M. (2020), The OLI Paradigm as a comprehensive model of FDI determinants: a sub-national approach, International Journal of Emerging Markets, ahead-of-print.
Dalbosco, I. B., & Floriani, D. E. (2016). Grau de internacionalização, competências. Internacionais, e desempenho organizacional da PME: estudos de caso no Sul do Brasil. REAd. Revista Eletrônica de Administração, 22(2), 478-509.
de Almeida Moraes, S. T., da Rocha, A., & da Silva, J. F. (2017). Uso de redes no decorrer do processo de internacionalização: Estudo longitudinal no setor de software. Internext, 12(1), 76-90.
Eduardsen, J. S. (2017). Risk in International Business: A Review of the Literature. In AIB 2017 Annual Meeting.
Eduardsen, J., & Marinova, S. (2016). Decision-makers' risk perception in the internationalisation of small and medium-sized firms. International Journal of Export Marketing, 1(1), 4-26.
Etemad, H., and Keen, C. (2018). Managing rapid change and rapid-growth in emerging industries. International Journal of Entrepreneurship and Small Business, 34(4), 480-499.
Feinberg, S. E., & Gupta, A. K. (2009). MNC subsidiaries and country risk: Internalization as a safeguard against weak external institutions. Academy of Management journal, 52(2), 381-399.
Fleury, A., & Fleury, M. T. L. (2007). Internacionalização das empresas brasileiras: em busca de uma abordagem teórica para os late movers. Internacionalização e os países emergentes, 1, 3-14.
Gallina, R., Bulba, E. A., & FLEURY, A. (2005). Processo de Internacionalização de Uma Empresa Brasileira do Setor de Autopeças: O Caso Sabó. XI Seminário Latino-Iberoamericano de Gestión Tecnológica.
Guerra, T. T. A., & Senhoras, E. M. (2015). Evolução da internacionalização empresarial brasileira (Vol. 14). EdUFRR.
Guo, Z., and Jiang, W. (2020), Risk-taking for entrepreneurial new entry: risk-taking dimensions and contingencies, International Entrepreneurship and Management Journal, Vol.16, pp.739-781.
Heidenreich, S., Mohr, A., & Puck, J. (2015). Political strategies, entrepreneurial overconfidence and foreign direct investment in developing countries. Journal of World Business, 50(4), 793-803.
Hennart, J. F. (2009). Down with MNE-centric theories! Market entry and expansion as the bundling of MNE and local assets. Journal of International Business Studies, 40(9), 1432-1454.
Herrmann, P., & Datta, D. K. (2006). CEO experiences: Effects on the choice of FDI entry mode. Journal of Management Studies, 43(4), 755-778.
Hill, C. W., Hwang, P., & Kim, W. C. (1990). An eclectic theory of the choice of international entry mode. Strategic management journal, 11(2), 117-128.
Hoyt, R. E., & Liebenberg, A. P. (2011). The value of enterprise risk management. Journal of risk and insurance, 78(4), 795-822.
Iglesias, R. M., & Veiga, P. D. M. (2002). Promoção de exportações via internacionalização das firmas de capital brasileiro. O desafio das exportações. Rio de Janeiro: BNDES, 1, 369-446.
Jhunior, R. O. S., & Abib, G. (2019). Percepção E Gestão De Riscos No Contexto De Internacionalização. Gestão & Planejamento-G&P, 20.
Jiménez, A., Luis-Rico, I., & Benito-Osorio, D. (2014). The influence of political risk on the scope of internationalization of regulated companies: Insights from a Spanish sample. Journal of World Business, 49(3), 301-311.
Johanson, J., & Vahlne, J. E. (1977). The internationalization process of the firm: a model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8, 23-32.
Johanson, J., & Vahlne, J. E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411-1431.
Johanson, J., & Wiedersheim-Paul, F. (1975). The internationalization of the firm: Four Swedish cases. Journal of management studies, 12(3), 305-322.
Knight, F. H. (1921). Risk, uncertainty and profit (Vol. 31). Houghton Mifflin.
Kogut, B., & Singh, H. (1988). The effect of national culture on the choice of entry mode. Journal of international business studies, 19(3), 411-432.
Kogut, B., & Zander, U. (1993). Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of international business studies, 24(4), 625-645.
Kot, S., & Dragon, P. (2015). Business risk management in international corporations. Procedia Economics and Finance, 27, 102-108.
Kraus, S., Ambos, T. C., Eggers, F., & Cesinger, B. (2015). Distance and perceptions of risk in internationalization decisions. Journal of Business Research, 68(7), 1501-1505.
Kubíčková, L., & Toulová, M. (2013). Risk factors in the internationalization process of SMEs. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 61(7), 2385-2392.
Laufs, K., Bembom, M., & Schwens, C. (2016). CEO characteristics and SME foreign market entry mode choice. International Marketing Review, 33(2), 246-275.
Lehtiranta, L. (2014). Risk perceptions and approaches in multi-organizations: A research review 2000–2012. International Journal of Project Management, 32(4), 640-653.
Leite, Y. V. P., & Moraes, W. F. A. D. (2014). Facetas do risco no empreendedorismo internacional. Revista de Administração Contemporânea, 18(1), 96-117.
Liesch, P. W., Welch, L. S., & Buckley, P. J. (2011). Risk and Uncertainty in Internationalization and International Entrepreneurship Studies: Review and conceptual development. Management International Review, 51, 851-873.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of management Review, 21(1), 135-172.
McDougall, P. P., Shane, S., & Oviatt, B. M. (1994). Explaining the formation of international new ventures: The limits of theories from international business research. Journal of business venturing, 9(6), 469-487.
Müllner, J. (2016). From uncertainty to risk—A risk management framework for market entry. Journal of World Business, 51(5), 800-814.
Pagach, D., & Warr, R. (2011). The characteristics of firms that hire chief risk officers. Journal of risk and insurance, 78(1), 185-211.
Peng, M. W. (2013). Global strategy. Cengage learning.
Rodriguez, V., Barcos, L., & Álvarez, M. J. (2010). Managing risk and knowledge in the internationalisation process. Intangible Capital, 6(2), 202-235.
Šarapovas, T., Hüettinger, M., & Ričkus, D. (2016). The impact of market-related factors on the choice of foreign market entry mode by service firms. Organizations and markets in emerging economies, 7, 34-52.
Simões, V. C., & Dominguinhos, P. (2005). Born globals versus domestic venture: an exploratory study on opportunity framing differences. In EIBA Annual Conference.
Sitkin, S. B., & Weingart, L. R. (1995). Determinants of risky decision-making behavior: A test of the mediating role of risk perceptions and propensity. Academy of management Journal, 38(6), 1573-1592.
Spikin, I. C. (2013). Risk Management theory: the integrated perspective and its application in the public sector. Estado, Gobierno y Gestión Pública, (21), 89-126.
Toulová, M., Votoupalová, M., & Kubíčková, L. (2014). The Perception of Risk Factors in the Internationalization Process by Small and Medium-sized Enterprises. In 5th Central European Conference in Regional Science–CERS.
Whitley, R. (1992). Business systems in East Asia: Firms, markets and societies. Sage.

Most read articles by the same author(s)

1 2 3 4 5 > >>