European franchise expansion into Latin America

2015 ◽  
Vol 38 (2) ◽  
pp. 149-165 ◽  
Author(s):  
Verónica Baena
Keyword(s):  
Economic Development ◽  
Latin America ◽  
Latin American ◽  
Political Stability ◽  
Market Potential ◽  
Geographical Distance ◽  
Market Conditions ◽  
Content Type ◽  
The Usa ◽  
Latin American Countries

Purpose This study aims to enhance the knowledge that managers and scholars have on franchising expansion. In this sense, it is worth mentioning that although the body of literature on international management focusing on emerging markets is growing, the attention paid to the Latin American context continues to be limited. This is surprising given the substantive economic importance of the region with a population over 590 million, and a gross domestic product of approximately US$5 trillion. To cover this gap, the present study examines how a number of market conditions may drive diffusion of franchising into Latin America: geographical distance, cultural distance, political stability and economic development. The authors also controlled for the host country’s market potential, transparency, unemployment rate and efficiency of contract enforcement. Design/methodology/approach This study uses a quantitative approach applied to a sample of 77 Spanish franchisors operating through 4,064 franchisee outlets across 21 Latin American countries in late 2012. They are: Argentina, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Bolivia, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay and Venezuela. Findings Results conclude that geographical distance between the host and home countries, as well as the level of host country’s political stability, economic development, market potential and transparency are able to drive the spread of international franchising across Latin American nations. Research limitations/implications This study provides readers with a general overview of the current state of global franchising diffusion overseas. Results obtained in this study are useful for understanding and predicting the demand for franchising in Latin American countries. Practical implications Economics reports argue that by 2050, the largest economies in the world will be China, the USA, India, Brazil and Mexico. This fact highlights the substantive importance of Latin America for foreign investors willing to expand their business abroad. In an attempt to give insights from the Latin American context, the present paper develops and tests a model that can be useful to franchisors willing to establish new outlets in the region. In addition, our findings offer guidance to firm managers seeking to target their franchises in Latin America. Franchisors may then use the results of this study as a starting point for identifying such regions whose characteristics best meet their needs of expansion. Originality/value This paper explores how market conditions may drive international diffusion of franchising into Latin American markets. The scant theoretical or empirical attention given to this topic has usually been examined from the USA and British base and focused on developed markets. To fill this gap, the present study analyzes the international spread of the Spanish franchise system into Latin America as a market for franchising expansion.

Thinking styles, gender, and decision making in Latin American management

2018 ◽  
Vol 31 (1) ◽  
pp. 29-42 ◽  
Author(s):  
Camelia Ilie ◽  
Guillermo Cardoza
Keyword(s):  
Decision Making ◽  
Latin America ◽  
Latin American ◽  
Positive Impact ◽  
Gender Diversity ◽  
Thinking Styles ◽  
Men And Women ◽  
Content Type ◽  
The Usa ◽  
Decision Making Processes

Purpose Many studies have analyzed how gender diversity and local culture condition the cognitive styles of managers and affect decision-making processes in organizations. Gender diversity has been defended from an equality perspective; it has been argued to improve decision-making processes and to have a positive impact on companies’ return on investment. The purpose of this paper is to analyze the differences between the thinking styles of men and women, in Latin America and the USA that support decision-making processes. An argument is given in favor of gender diversity in management teams, because of its positive implications in decision making. Design/methodology/approach The measurement instrument used was the Neethling Brain Instrument, developed based on recent neuroscience discovery. The sample comprised 1,216 executives from the USA and several countries in Latin America and the Caribbean, who have participated in executive training programs. Findings The results show differences in thinking styles by gender, but no differences were found in thinking styles or decision making between men and women at the same managerial level in either of the two regions. Similarly, results suggest that executives in the USA tend to base their management models on strategic thinking styles that focus on interpersonal relations and involve risk taking, while executives in Latin American countries tend to prefer thinking and management styles focusing on data analysis, execution, planning, and process control. Originality/value The results of the present study show that, in all regions, men score higher in rational thinking styles associated with the cortical areas, while women gravitate toward thinking styles where emotional schemes prevail, related to subcortical areas. These results could be useful for organizational leaders in charge of allocating roles and tasks to people, based on their thinking style strengths. The results can also be very valuable for Latin American organizations to design specific training and development programs for men and women accordingly with their individual needs and their managerial roles. They can also support the argument that diverse gender teams will guarantee complete decision-making processes.

scholarly journals Sectorial specialisation in East Asia and Latin America compared

2002 ◽  
Vol 22 (4) ◽  
pp. 613-634 ◽  
Author(s):  
MARCELA MIOZZO
Keyword(s):  
Economic Development ◽  
Latin America ◽  
East Asia ◽  
Latin American ◽  
East Asian ◽  
Institutional Arrangements ◽  
The Other ◽  
Asian Countries ◽  
The Government ◽  
Latin American Countries

ABSTRACT East Asian countries have been successful at specialising in machinery and capital goods. Latin American countries, on the other hand, have retreated from these sectors, reinforcing their specialisation in resource-intensive goods. Institutional arrangements in place in both regions explain these divergences. In particular, the differences in the strategy and structure of leading firms, the nature of industrial promotion by the government, the development and support of small and medium-sized firms and the operation of foreign-owned firms may explain the respective success and failure in sectoral specialisation in machinery. Failure to develop these sectors may hinder the process of economic development.

scholarly journals Transregionalism in relations between Latin America and the European Union

2021 ◽  
Vol 7 (Extra-B) ◽  
pp. 297-304
Author(s):  
Elizaveta Andreevna Vinogradova ◽  
Marina Vladimirovna Kuznetsova
Keyword(s):  
Latin America ◽  
Latin American ◽  
World Politics ◽  
The European Union ◽  
National Interests ◽  
Bilateral Relations ◽  
The Usa ◽  
Globalized World ◽  
Latin American Countries ◽  
The Eu

Nowadays the globalized world faces new challenges, for instance, trade and economic contradictions between the main actors of the world politics (the USA and China, the USA and the EU). Amid this situation, Latin America could play the card, add momentum to the cross-regional contacts and considerably benefit from it. Fostering relations with the EU serves the national interests of Latin American countries, since the EU investment and technologies can be the tools to modernize the economy. The EU is the leader in implementing harmonization between regions. The relations between the EU and Latin America can be considered as a model of hybrid interregionalism. While bilateral relations or the ties of the EU with subregional integration associations remain strong, the relations between the EU and the entire Latin American and the Caribbean (LAC) region are still underdeveloped, and countries have been trying to rectify it recently.

scholarly journals Intangible assets and business performance in Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernanda Cristina Lopes ◽  
Luciana Carvalho
Keyword(s):  
Latin America ◽  
Latin American ◽  
Business Performance ◽  
Intangible Assets ◽  
Business World ◽  
Content Type ◽  
Intangible Resources ◽  
New Knowledge ◽  
The Relationship ◽  
Latin American Countries

Purpose The intangible assets of a company have been presented by national and international surveys as a resource to influence the creation of value and the increase in organizational performance. In view of this, this study aims to analyze the relationship between intangibility and the performance of companies in Latin America. Design/methodology/approach For this purpose, multiple regression with panel data was used and three perspectives for measuring intangible resources were defined: representativeness of the intangible asset, accounting measure for measuring the intangible, degree of intangibility and Tobin’ Q, the latter two representing economic and financial measures to determine intangibility. The study covered the period from 2011 to 2017 with a sample of 1,236 publicly traded companies located in some Latin American countries, namely, Argentina, Brazil, Chile, Colombia, Mexico and Peru. Findings The results demonstrated the existence of a significant and positive relationship between the variables of intangibility, degree of intangibility and Tobin’s Q, and the performance variables, return on assets, operating margin and asset turnover, reinforcing the study hypothesis that the greater the investment in intangible resource, the greater the company’s performance. Research limitations/implications The limitations of this study involve the lack of complete information about intangible resources in the financial statements of some companies and some countries, making it hard to analyze the proposed relationship more broadly and accurately. Another limitation involves the causal relationship that may have existed between the regressors of the models defined in the study and their error, thus generating an endogeneity problem in the proposed models. It is recommended for future research to use specific methods to mitigate possible problems of endogeneity in regressions. Practical implications Mainly the possibility of deepening the relationship between intangibility and business performance, thus obtaining new knowledge through the reflexes of this relationship on companies in Latin American countries, finding more consistent results. Social implications The study contributes to the decision-making process in the business world by informing the primary users of accounting information such as investors, administrators, accountants, regulators and creditors. Originality/value This research contributes by addressing a theme whose studies present many gaps, making it possible to deepen the relationship between intangibility and business performance and gain new knowledge through the reflexes of this relationship on companies in Latin American countries.

Informality will limit tax options in Bolivia and Peru

2017 ◽  
Keyword(s):  
Latin America ◽  
Latin American ◽  
Informal Sector ◽  
Income Tax ◽  
Tax Base ◽  
Content Type ◽  
Common Features ◽  
Alternative Sources ◽  
Market Liberalisation ◽  
Latin American Countries

Subject Labour informality and the tax base. Significance Peru and Bolivia are among the Latin American countries with the highest levels of informality in their employment structures. Informality takes various forms, but one of its common features is escape from the tax net. In the pursuit of raising government incomes, various policies are being adopted to draw firms into formality and make them pay income tax and social security contributions. Impacts A large informal sector is likely to persist longer in Peru and Bolivia than most other countries in Latin America. A protracted downturn in tax revenues from extractives may force authorities to tap into alternative sources of revenue. The scale of illicit activity, not least in drug-related activities, will continue to be an obstacle to reducing informality. Political opposition will militate against radical labour market liberalisation.

Chinese influence in Latin America will increase

2020 ◽  
Keyword(s):  
Latin America ◽  
Private Sector ◽  
Latin American ◽  
Security Risks ◽  
Content Type ◽  
Latin American Countries ◽  
Robust Response

Significance This robust response, which contrasts with low-key and smaller-scale US reactions, is a testament to China’s economic and diplomatic standing, which in recent years has become more generalised in the region. Impacts China’s regional footprint will continue to transform towards technology-intensive sectors and private-sector-driven engagement. Governments will need to be more strategic to seize opportunities while limiting environmental, social and security risks. Latin American countries will increasingly find themselves caught in the middle of US-China tensions.

Nanoscience and Nanotechnology in Latin America

2010 ◽  
Vol 2 (4) ◽  
pp. 38-76
Author(s):  
Adolfo Nemirovsky ◽  
Fernando Audebert ◽  
Osvaldo N. Oliveira Jr. ◽  
Carlos J. L. Constantino ◽  
Lorena Barrientos ◽  
...  
Keyword(s):  
Latin America ◽  
Latin American ◽  
The State ◽  
Nuclear Technology ◽  
Research Centers ◽  
Nanoscience And Nanotechnology ◽  
The Usa ◽  
Research Excellence ◽  
Latin American Countries ◽  
The Eu

Latin America (LA) can count some strong research centers with a tradition of research excellence in certain disciplines such as medicine and biology, nuclear technology, metallurgy and materials, among others. Latin American countries have generated networks of researchers across disciplines, centers, etc. within a country, and linking two or more countries in the region (e.g., Argentina-Brazil Bi-National Center for Nanoscience & Nanotechnology, CABN). Additionally, collaborations have extended beyond LA, mainly to the EU and the USA. In general, these programs have been quite successful in the generation of interdisciplinary nanoscience and nanotechnology (N & N) research. The relation between academia and industry has been improving in the last few years, but it is still weak. In particular, funding incentives for N&N efforts have encouraged joint efforts and contributed to new dimensions in collaborations. This chapter reviews the state of nanoscience and nanotechnology in Chile, Brazil, Argentina and Mexico.

Key factors in tourism management to improve competitiveness in Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José Manuel Guaita Martínez ◽  
Paula Serdeira Azevedo ◽  
José María Martín Martín ◽  
Rosa María Puertas Medina
Keyword(s):  
Latin America ◽  
Information And Communication Technologies ◽  
Latin American ◽  
Transport Infrastructure ◽  
Distance Method ◽  
Content Type ◽  
Country Level ◽  
Synthetic Indicator ◽  
The Individual ◽  
Latin American Countries

PurposeThis paper analyzes tourism competitiveness in Latin America, providing a country-level ranking of tourism competitiveness. The study also identifies which areas of management to focus on in order to increase competitiveness in each case.Design/methodology/approachThe study is based on the variables used by the World Economic Forum (WEF) to measure tourism competitiveness. The DP2 distance method is used to create a synthetic indicator. This method helps identify which areas best explain differences in competitiveness between countries.FindingsIn tourism, the most competitive Latin American countries are Costa Rica, Chile, Panama, Mexico and Uruguay. The areas that best explain the differences between countries relate to cultural and natural resources, the implementation of information and communication technologies (ICTs), international openness and transport infrastructure. These are therefore priority areas for tourism managers.Practical implicationsThis paper provides detailed analysis for each country. The situation in each country is presented in terms of the key areas highlighted by the analysis. This approach can aid the individual decisions of companies and public managers, thus enhancing tourism competitiveness. This greater competitiveness can strengthen the tourism sector, which is crucial in uncertain times.Originality/valueBased on a synthetic indicator, this research offers the first country-level analysis of tourism competitiveness in Latin America. The study is also novel in its ability to detect the areas where action should be taken to improve tourism competitiveness. This analysis offers an alternative to the WEF Travel and Tourism Competitiveness Index (TTCI), which has certain weaknesses. The results can help enhance tourism competitiveness in Latin American countries through the specific recommendations presented in this paper.

Public pensions, economic development, and the labor force participation of older adults in Latin America in 1990–2010

2017 ◽  
Vol 3 (1) ◽  
pp. 121 ◽  
Author(s):  
Bernardo Lanza Queiroz
Keyword(s):  
Older Adults ◽  
Economic Development ◽  
Latin America ◽  
Labor Supply ◽  
Labor Force ◽  
Latin American ◽  
Labor Force Participation ◽  
Public Pension ◽  
Aggregated Data ◽  
Latin American Countries

This paper investigates the coverage of public pension programs in Latin America and discusses the relation between economic development, the existence of public pension programs, and elderly labor force participation. The paper presents stylized facts about the labor force by age and the connection between economic development and labor supply using aggregated data from 23 Latin American countries. The second part of the paper uses regression models to investigate the effects of economic development and social security system on the labor force participation of the older adults in 23 Latin American countries over the period 1990–2010. The results show that in lower income Latin American countries, most men remained in the labor force until age 65 or beyond and that with economic development and related changes, the labor force participation of older men, even those aged 55–59, starts to decline. Overall, the paper provides some insight on the evolution of labor supply patterns in less developed economies with rising income, changes in population age structure, shifts in occupational composition, and development in public pension programs.

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