THE ROLE OF INTERPRETATION IN THE INTERNATIONALIZATION OF SMALLER BRAZILIAN FIRMS

Informações

Código: ESO1222
Divisão: ESO - Estratégia em Organizações
Tema de Interesse: Tema 08 - Negócios Internacionais

Autores

Rene Eugenio Seifert, John Child, Suzana Braga Rodrigues

Resumo

This study considers how decision makers in smaller firms interpret the means and conditionsof internationalization, and how different modes of interpretation are likely to inform actionchoices in this process. Thus it questions whether internationalization can be understood as astrategic action that is objective and independent from actors or whether it should be viewedas a phenomenon that is oriented by their interpretation and understanding. It draws on 58interviews with the leaders of Brazilian clothing small and medium-sized enterprises [SMEs]located in the state of Paraná. The results support the contention that different understandingsgiven to the means and conditions of internationalization are associated with different actionchoices. They highlight that internationalization is not an objective phenomenon as typicallyportrayed in mainstream theorizing. Rather, they indicate that strategic choices and actions oninternationalization are rationalized on the basis of the interpretation given to its means andconditions. For the SME leaders studied, five categories are of most relevance, namely:quantities involved; mode of competition; differences between foreign and domesticoperations; risk and uncertainty; and legitimacy. Each of these categories may encompassdifferent modes of interpretation. The analysis further indicated that depending on theinterpretative mode used, different strategic choices regarding international involvement arelikely to be rationalized. It is concluded that: (1) interpretation changes the criteria andparameters by which rational choices on internationalization are made; (2) a comprehensiveexplanation of internationalization on the basis of firm, managerial, environmental and othersituational characteristics is likely to be inconclusive without taking into account decisionmakers’ interpretative modes; (3) particular meanings given to the means and conditions ofinternationalization are likely to orient choice in different ways, (4) managers act on the basisof their inter-subjectively negotiated, shared and sustained reality; and (5) investigativeproximity with practitioners is essential in order to account comprehensively for theirinterpretations. Having drawn these conclusions, the specificities of this study suggest a needand opportunity for further investigation. The categories of meaning identified are not likelyto be exhaustive, and their application to other populations of SMEs deserves investigation.The present study focused on a particular industry in a single country. There is scope forfurther research to map out interpretative modes that may be institutionalized in differentorganizational fields, sectors or industries, and how they inform choices oninternationalization. This approach is likely to be of particular interest and relevance forpolicy making in the field. Moreover, the study raises, but does not resolve, the question ofcausality. Further research should consider both how different interpretative modes informaction choices on internationalization and whether action choices in turn cause interpretationsto be modified in the light of experience with those chosen actions.

Abrir PDF