INTERNATIONALIZATION OF EMERGING MARKET MULTINATIONALS: A CONVERSATION BETWEEN THE UPPSALA MODEL AND THE SPRINGBOARD PERSPECTIVE

Abstract

Objective: This study focuses on the internationalization process of an important emerging markets multinational (EMM), aiming to understand how such companies manage to achieve relevant positions in the global economy. In seeking to understand its strategy and internationalization process, we tackle the debate on whether traditional behavioral international business theories are adequate to explain EMM internationalization processes. Method: An in-depth case study was performed with one of the largest global players in the beauty industry, Natura & Co. The case study method was selected given that an in-depth data collection involving multiple sources of information was needed to investigate the phenomenon. Primary and secondary data were collected, analyzed, and triangulated. Main Results: This study brings the construct of organizational psychic distance to the discussion and how can it impact internationalization choices. Moreover, it illustrates how some EMMs are successfully applying concepts described by both traditional and EMM theories in their internationalization strategies Relevance / Originality: The study illustrates an empirical case from Latin America, a region poorly explored academically. Additionally, the case explains how a Brazilian company has managed to compete globally and become one of the biggest global players in the beauty industry. Theoretical / Methodological Contributions: The case discusses, for the first time, the construct of organizational psychic distance and its impact on internationalization choices. It also defies the boundaries of the existing theories and enriches the literature by portraying the springboard perspective as complementary to the Uppsala model so that both theories can dialogue and be extended.