Strategy and Innovation in Multinationals

Discipline: EAD5952-3

Concentration area: 12139

Number of Credits: 8

Course load:

(Per week)
(Per week)
(Per week)
The multinational corporation is the most traditional vehicle to internationalize businesses. The multinational corporation is the one that (1) invests directly in foreign countries while (2) engaging in an active administration of its international operations (Bartlett and Ghoshal, 1995). Such definition is in accordance with the one adopted by the UN, which defines a multinational corporation as a company that (a) owns units in two or more countries, (b) has a decision-making system, which enables the creation of consistent policies and the emergence of a common strategy accomplished by one or more decision-making centres and (c) has inter-related units due to ownership relations in which one unit may exercise a relevant influence over the activities of other units while sharing knowledge, resources and responsibilities (United Nations, 1983).
The main objective of this course is to get all participants in touch with both theory and conceptual frameworks that are involved in corporate strategies, as well as with the different forms of innovation adopted by successful companies that operate in several international markets. Companies that operate in several international markets tend to elaborate and to implement strategies and management models to meet each international market's needs, besides taking advantage of scale economies and the knowledge obtained from global activities. More specifically, this course aims to provide:
a) a critical comprehension regarding the main theories and models with reference to strategy and management of international companies;
b) an explanation regarding the innovation process in multinational corporations, as well as the importance of its administration;
c) a capacity to internalize and discuss the main approaches, concepts and techniques with respect to strategy and innovation management in multinational corporations;
d) an explanation regarding the internationalization process of companies from emerging economies, as well as the challenge involved in such process (theory and practice);
e) a critical hability to applicate the contents of the course with reference to the internationalization of small and medium sized Brazilian companies, technology-based small and medium sized Brazilian companies and franchises.


In this course there will be several expository lessons prepared by the professors, lectures made by selected guests, discussions promoted with all participants, practical tasks in order to facilitate learning in an active and student-centered process. That way:

a) the preparation of each class made by the professor (contents and dynamics) is an essencial requirement for a successful course;
b) student's participation and dedication (in and outside the classroom) is a key component of this teaching method;
c) such participation relates to discussions and presentations structured in the classroom, which will have connection with the content of mandatory readings;
d) a paper will also be required from the students, which can be based on practical observations or an essay. The content of this paper will be discussed with all participants in the classroom.

We sincerely hope that all participants, as a part of the process, add new references and bring new discussions into the classroom in order to complement the learning process. It is also very important that the students get in contact with the professors outside the classroom when something was not quite clear to them or when they want to learn more about a certain subject.


Avaliation methods:
a) Attendance, interest and participation in the classroom (10%);
b) Presentations and exercises in the classroom (40%);
c) Paper elaboration and

Case study, Multimedia, projectors, among others.

All students, in small groups, will have to develop a paper (field work). The methodology shall follow the scheme below:

The participant must write one page about his/her chosen theme for the professor's approval. The themes chosen by the participants must be in line with the course's objectives and contents.


Class References
1a Course presentation
Case Study: Philips versus Matsushita: A New Century, A New Round
2a BARTLETT, C.; Ghoshal, S.; (1989) Managing Across Borders: The Transnational Solution. Harvard Business School Press, 1989.
Ghoshal, S.; BARTLETT, C. (2001) Tap your subsidiaries for global reach. Harvard Business Review. June. Pages 87-94.
Nohria, N. and Ghoshal, S. (1997) The Differentiated Network: Organizing Multinational Corporations for Value Creation. San Francisco: Jossey-Bass Publishers. Chap. 1 e 2.
Complementary reading:
C.K. Prahalad; hrishi bhattacharyya (2011) How to be a truly global company. New York: Strategy + Business Magazine. Booz&Co. Issue 64. Aug 2011 .
Doz, Y.; Santos, J. e Williamson, P. (2001) From Global to Metanational – How Companies Win in the Knowledge Economy. Boston: Harvard Business School Press. Chapter 1 (pp. 1-28)
OLIVEIRA JR. M.M., BORINI, F.M. The Role of Subsidiaries From Emerging Economies—A Survey Involving the Largest Brazilian Multinationals. Thunderbird International Business Review Vol. 54, No. 3 May/June 2012. PP. 361-372.
3a Sustainable Development Goals – United Nations
(Joint Class)
4a London, J. and Hart, S. (2004) Reinventing Strategies for Emerging Markets: Beyond The Transnational Model. Journal of International Business Studies. Vol. 35.
KHANNA, T.; PALEPU, K.; SINHA, J. (2005) Strategies that Fit Emerging Markets. Harvard Business Review. June. Pages 1-15.
ZENG, M.; Williamson. P.J. Dragons at your Door: How Chinese Cost innovation is Disrupting Global Competition. Chapter 2- Cost Innovation. Harvard Business School Press. (2007) pp. 57-88.
Case Study: AMBEV - Spreading a Results Oriented Culture Worldwide

PINTO, K.E.F.; OLIVEIRA JR. M.M, BORINI, F.M. Corporate Social Responsibility: A study in Brazilian Subsidiaries. African Journal of Business Management. v. 14, p. 405-423, 2013.
Boehe, D.M.; Barin Cruz, L. Corporate Social Responsibility, Product Differentiation Strategy and Export Performance. Journal of Business Ethics, v. 91, p. 325-346, 2010.
SCHOOLER, R. D. (1966). Product bias in the Central American common market. The International Executive, 8(2), 18-19. doi: 10.1002/tie.5060080211
PHARR, J. Synthesizing Country-of-Origin Research From The Last Decade: Is The
Concept Still Salient In An Era Of Global Brands? Journal of Marketing Theory & Practice, v.13, n.4, p.34-45, 2005.
Sharma, P. (2011). Country of origin effects in developed and emerging markets: Exploring the contrasting roles of materialism and value consciousness. Journal of International Business Studies, 42(2), 285-306. RACHEL
DIB, L. A.,ROCHA, A., SILVA, J. F. (2010). The internationalization process of Brazilian software firms and the born global phenomenon: Examining firm, network, and entrepreneur variables. Journal of International Entrepreneurship, 8 (3), 233-253. doi: 10.1007/s10843-010-0044-z.
RIBEIRO, F. C. F. ; OLIVEIRA JR, M.M. ; BORINI, F. M. ; BERNARDES, R. C. . Accelerated Internationalization in Emerging Markets: Empirical Evidence from Brazilian Technology-Based Firms. Journal of Technology Management & Innovation, v. 9, p. 1-12, 2014. CARLOS PECUCCI
BEZERRA, M. A. ; COSTA, S. ; BORINI, F. M. ; OLIVEIRA JR., MOACIR MIRANDA . Reverse Knowledge Transfer: A Comparison Between Subsidiaries of Emerging Markets and Subsidiaries of Developed Markets. Revista Iberoamericana de Estratégia, v. 12, p. 67-90, 2013.
BIRKINSHAW, JULIAN; NOBEL, ROBERT; BRESMAN, HENRIK Knowledge transfer in international acquisitions; Journal of International Business Studies; Third Quarter 1999; 30, 3; ABI/INFORM Global pg. 439.

VON ZEDTWITZ, M.; GASSMANN, O. (2002) Market versus technology drive in R&D internationalization: four different patterns of managing research and development.
Research policy 31 (4), 569-588 PAULA
OLIVEIRA JR. M.M; BORINI, F.M.; FLEURY, A. Innovation by Brazilian EMNEs in WILLIAMSON, P.J.; RAMAMURTI, R.; FLEURY, A.; FLEURY, M.T.L. The Competitive Advantage of Emerging Market Multinationals, Cambridge University Press, 2013. PAUL
BORINI,F.M.; OLIVEIRA JR.,M.M.; SILVEIRA,F.F.; CONCER, R.O. The reverse transfer of innovation of foreign subsidiaries of Brazilian multinationals. European Management Journal. Volume 30, Issue 3, pp. 219-231. DIANA
LORENZEN, M.; MUDAMBI, R. Clusters, connectivity and catch-up: Bollywood and Bangalore in the global economy. Journal of Economic Geography, 2012 - Oxford Univ Press.
KOLLMANN, M.F.C.; R MUDAMBI, R.; TAVARES-LEHMANN. A.T.Innovation networks in peripheral economies: The case of Portugal. - 2013 - druid8.sit.aau.dk CARLOS VARGAS

Palestra Marcos Machado:
Place Branding and Branding Internationalization

MELO, P.L.R.; BORINI, F.; OLIVEIRA JR., M.M.; parente, R. Internationalization of Brazilian franchise chains: a comparative study, RAE – Revista de Administração de Empresa da FGV-EAESP. V. 55, p. 258-272, 2015 PATRICIA
MELO, P.L.R.; BORINI, F.; OLIVEIRA JR., M.M.; parente, R. International analysis of the countries in which Brazilian franchise chains operate, RAUSP – Revista de Administração da USP. v. 50, p. 26-39, 2015. VERÔNICA

Palestra Fernanda Ribeiro:
Empreeendedorismo Internacional e Caso Marcopolo
GIULIANI E. (with Pietrobelli C., and Rabellotti R.) (2005) Upgrading in global value chains: Lessons from Latin American clusters. World Development 33(4), 549-573. 23. FLAVIO
GIULIANI E. (with Bell M.) (2005) The micro-determinants of meso-level learning and innovation: evidence from a Chilean wine cluster. Research Policy 34(1), 47-68
COELHO, D. B. ; OLIVEIRA JUNIOR, M. M. . Public instruments to support internationalization in Brazil: the case of Brazil Machinery Solutions from the perspective of executives of mechanical capital goods. In: Fifth Annual AIB-LAT Conference, 2015, Santiago. Internationalization of Family and Entrepreneurial Businesses in Latin America, 2015.
Claudia de Lima Cheron ; SEMENSATO, Barbara ; WUEST, Christine ; LEVEN, Max ; OLIVEIRA JR., M.M. . Public Polices Supporting the Internationalisation of Micro and Small Enterprises a Comparative Study between Brazil and Germany. In: 2013 AIB-LAT Academy of International Business - Latin American Chapter, 2013. 2013 AIB-LAT Academy of International Business - Latin American Chapter, 2013. v. 3. RODRIGO
KHANNA, TARUN, AND KRISHNA PALEPU. (2000) “The Future of Business Groups in Emerging Markets: Long-Run Evidence from Chile.” Academy of Management Journal 43, no. 3 (June). CHRISTOPHE
AULAKH, PREET S.; KOTABE, MASAAKI (2008) Institutional changes and organizational transformation in developing economies. Journal of International Management. (14) 209-216. CRISTIAN

Academy of Management Review
Academy of Management Journal
California Management Review
European Management Journal
Harvard Business Review
Long Range Planning
MIT Sloan Management Review
RAUSP - Revista de Administração
RAE - Revista de Administração de Empresas
RAC - Revista de Administração Contemporânea
Strategic Management Journal
European Journal of International Management
Global Strategy Journal
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International Journal of Innovation Management
International Journal of Technology and Globalization
Journal of High Technology
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Journal of World Business
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Research-Technology Management
Revista de Administração e Inovação
Revista Brasileira de Inovação
R&D Management
Technology Management: Strategies and Applications
Thunderbird International Business Review

http://aib.msu.edu/ (Academy of International Business)
http://www.aib-lat.org (Academy of International Business – Latin American Chapter)
http://www.eiba-online.org/ (European International Business Academy)
http://division.aomonline.org/im/ (International Management Division - Academy of Management)