The springboard network: multinationals in Latin America

Abstract

Purpose

The purpose of this paper is to provide empirical evidence regarding the springboard regionalization strategy implemented by multinationals entering Latin America and the organizational networks developed to serve this end.

Design/methodology/approach

Using the organizational network approach, a typology is developed to explain the Springboard network. Quantitative analysis is used, in the form of logistic binary regression, to study these networks composition.

Findings

From a sample of 154 subsidiaries extracted from the AMADEUS intelligent database, three categories for multinational’s networks are created, with the Spanish subsidiary acting as the leader: strategic centers (SCs), administrative centers (ACs) and regional headquaters (RHQs). Findings provide evidence of cultural features, industry behavior and the multinational’s size and entry mode influence these networks organization.

Research limitations/implications

It is proposed that culture and historical ties have evolved together and management scholars should be aware of this phenomenon. Specific limitation that this study exhibits is the data provided by AMADEUS and the fact that R&D information for both the Spanish and the Latin American subsidiary were not available.

Practical implications

Staffing composition and expatriate corporate policy should consider the springboard effect to manage springboard networks.

Social implications

Industries and authorities in all countries involved should be aware of their role in MNC strategies for regional expansion.

Originality/value

It is argued that a network of subsidiaries within the multinational can participation in the springboard behavior, which is determined by the culture that the multinational originates from, as well as the Spanish culture, creating a particular type of leadership.

Citation

Chaves, F.Q. (2018), "The springboard network: multinationals in Latin America", International Journal of Emerging Markets, Vol. 13 No. 5, pp. 855-874. https://doi.org/10.1108/IJoEM-07-2016-0172