Showing papers in "Latin American Business Review in 2008"
TL;DR: The authors examined the impact of prevailing religious beliefs on the dominant view toward work and achievement in Menno Colony of the Chaco, one of the Mennonite communities in Paraguay.
Abstract: This article examines the impact of prevailing religious beliefs on the dominant view toward work and achievement. The focus of the article is the Menno Colony of the Chaco, one of the Mennonite communities in Paraguay. It illustrates that the values of this religious minority appear to facilitate successful collective entrepreneurship. Here, religion values asceticism, frugality, and thrift, but not private property. Entrepreneurship takes a collective form, and cooperatives are important economic vehicles that provide jobs for indigenous workers and markets for the produce of self-employed farmers. While Mennonite cooperatives are thriving here, Indian cooperatives modelled after them have not had the same levels of success. RESUMEN. Este estudio examina el impacto producido por las creencias religiosas sobre una vision predominante hacia el trabajo y los logros. El articulo se centra en la Colonia Meno del Chaco, una de las comunidades Menonitas que existen en Paraguay. Tambien hace hincapie e...
59 citations
TL;DR: In this article, the same sample of exporting firms was visited in three different moments over a period of 27 years (1978, 1999, 2005) to identify latent dimensions underlying the perception of specific obstacles and their change over time.
Abstract: The literature on export barriers suggests the need for longitudinal studies in order to “capture the variations in export barriers due to time…” (Leonidou, 2004, p. 297). This study aimed for a better understanding of this issue by exploring the following research questions: To what extent does the perception of export obstacles vary over time? Is such perception contingent on specific factors, or do its underlying dimensions remain the same over a long period of time? No studies were found in the literature regarding barriers to exporting that could give an answer to such questions. In the present study, the same sample of exporting firms was visited in three different moments over a period of 27 years (1978, 1999, 2005) to identify latent dimensions underlying the perception of specific obstacles and their change over time. Results showed a surprising stability in the perception of obstacles, although specific changes were determined to exist that were associated with change in environmental f...
46 citations
TL;DR: This paper carried out a comparative analysis of five typologies of organizational culture, examining their similarities and differences, and proposed a model that incorporates the typologies referred to in the existing bibliography.
Abstract: In the past two decades, culture has been the object of study for purposes of understanding organizational environment. Several contexts are examined in order to understand this variable which, coming from anthropology by way of the observation of social groups in different geographic regions, will be observed in this study as a variable belonging to a specific social group: The Organization. This study carries out a comparative analysis of five typologies of organizational culture, examining their similarities and differences. The typologies compared are those of Schneider (1996), Handy (1978), Quinn and McGrath (1985), Trompenaars (1994), and Hofstede (1991). The method of research is exploratory. Toward the end of the article, a model is proposed that incorporates the typologies referred to in the existing bibliography. What is proposed in this model is intended to assist in the determination of paradigmatic worldviews for the analysis of organizational culture by virtue of broad similarities ...
24 citations
TL;DR: In this article, consumer market segments existing among Peruvian consumers by using lifestyle patterns and ethnocentrism data for the study was collected through self-survey in two major cities located in Peru, South America.
Abstract: Exploring consumer lifestyles and ethnocentrism is one way of investigating buyer behavior and market segmentation This article studies consumer market segments existing among Peruvian consumers by using lifestyle patterns and ethnocentrism Data for the study was collected through self-survey in two major cities located in Peru, South America The results point out that there are nine style dimensions among Peruvian consumers that influence their ethnocentric tendencies These findings have implications for marketers who currently operate in or are planning to enter the Peruvian market in the near future RESUMEN Los estilos de vida de los consumidores y el etnocentrismo pueden explorarse a traves de la investigacion del comportamiento de los compradores y la segmentacion del mercado Este estudio analiza los segmentos existentes en los diferentes segmentos de mercado peruanos, utilizando patrones sobre su estilo de vida y etnocentrismo Los datos utilizados en este estudio se colectaron a tra
17 citations
TL;DR: In this paper, the similarities and differences between native-owned and foreign-owned small-and microenterprises in Costa Rica were explored using a 2005 sample of 327 firms from the central highlands and the Caribbean coast.
Abstract: In this article we explore the similarities and differences between native-owned and foreign-owned (primarily Nicaraguan) small- and microenterprises in Costa Rica. Utilizing a 2005 sample of 327 firms from the central highlands and the Caribbean coast, we found similarities in the level of business informality, firm size, and length of business operation. Significant differences exist regarding business atmosphere and job satisfaction. Important distinctions are also found in business income, business value, and business financing. Income gaps between native- and foreign-born entrepreneurs may be the result of a liability of foreignness in the marketplace. RESUMEN. En este trabajo se estudian las semejanzas y diferencias entre micro y pequenas empresas de Costa Rica de capital nacional y extranjero (principalmente de Nicaragua). Utilizando una muestra del ano 2005, de 327 empresas del altiplano central y de la costa caribena, encontramos semejanzas en el grado de informalidad de los negocios, po...
16 citations
TL;DR: A large percentage of companies use the discounted cash flow (DCF) approach as the primary technique for investment/project evaluation and the capital budgeting process as discussed by the authors, which requires forecasting the detailed cash flow of the project under evaluation and then discounting the resulting cash flow to the present value (Net Present Value) using an appropriate discount rate.
Abstract: A large percentage of companies use the discounted cash flow (DCF) approach as the primary technique for investment/project evaluation and the capital budgeting process. This approach requires forecasting the detailed cash flow of the project under evaluation and then discounting the resulting cash flow to the present value (Net Present Value–NPV) using an appropriate discount rate. The discount rate commonly used represents the Weighted Average Cost of Capital (WACC) of the firm. There is no scarcity of literature on this subject as the concept has been around for the last 50 years or so. Although most analysts believe the concept is simple and very well known, the irony is that its misinterpretation and misuse prevails. There are many versions of the WACC equation and each is specific to a certain cash flow. Therefore, using the classic WACC relationship in all cases may result in the calculation of an overly optimistic NPV. Depending on the cash flow pattern, the investment may show a positive...
13 citations
TL;DR: In this article, the authors explore the mechanism that builds brand personality through means of communication, such as advertising and word of mouth, and present viable propositions as managerial implications for building a brand's personality while taking the variables of marketing communication into consideration.
Abstract: Brand equity is built around brand personality as one of its core dimensions. The psychographic variables, such as emotions, associated with a brand's image constitute the brand's personality. Although consumers' experiences with the brand cultivate such a personality, advertising plays a dominant role in its creation. This paper attempts to explore the mechanism that builds brand personality through means of communication, such as advertising and word of mouth. The discussions in the paper integrate advertising variability concepts with brand personality and present viable propositions as managerial implications for building a brand's personality while taking the variables of marketing communication into consideration. The hypotheses set within the integrated framework lead to the construct of an advertising model that is cohesive to brand personality measures. In building this framework, analyses of the concepts of brand equity and advertising, communication, personality and loyalty have been c...
12 citations
TL;DR: In this article, the usefulness of the non-linear artificial neural network (ANN) for forecasting in finance and economics is explored, and the results show that the ANN can be used for forecasting financial forecasting.
Abstract: Forecasting is a key activity for academics and investors in the fields of finance and economics. This paper explores the usefulness of the non-linear artificial neural network (ANN) for forecastin...
12 citations
TL;DR: This paper investigated the volatility spillover effects of European equity markets to the equity markets of Mexico, Brazil, and Chile, and found that negative innovations increase volatility more than do positive innovations.
Abstract: We investigate the volatility spillover effects of European equity markets to the equity markets of Mexico, Brazil, and Chile. The results of the E-GARCH and VAR models suggest that the stock markets of Spain and Germany have stronger volatility spillover effects on Latin American markets than do Italy, the United Kingdom, and France. We find that these spillover effects of Spain and Germany have a greater impact on Mexico and Brazil than on Chile. Moreover, in all these cases negative innovations increase volatility more than do positive innovations. We tie our results to the relative degree of openness of Latin American countries and their level of international trade with the European economies. Mexico and Brazil are relatively more open economies than is Chile. Also, these two Latin American economies have higher levels of international trade with Spain and Germany than with other European economies. Our results are consistent with the notion that, as an economy becomes more open and integrat...
10 citations
TL;DR: The authors examined price and volatility spillovers and response asymmetries between the equity markets of the United States and Brazil, Chile and Mexico using a multivariate exponential generalized autoregressive conditionally heteroscedastic (M-EGARCH) model.
Abstract: Using a multivariate exponential generalized autoregressive conditionally heteroscedastic (M-EGARCH) model, this study examines price and volatility spillovers and response asymmetries between the equity markets of the United States and Brazil, Chile and Mexico. Our results vary depending on the openness of the country in terms of international trade. Evidence indicates that there are price and volatility spillovers from the United States to Mexico and Chile and but not to Brazil. In addition, our results indicate response asymmetries for Mexico and Chile, suggesting that the Mexican and Chilean markets are more sensitive to negative innovations originating from other markets than to positive innovations. RESUMEN. Este estudio examina contagios de precio y volatilidad, y respuestas asimetricas entre los mercados de capital de Estados Unidos y Brasil, Chile y Mexico, fundandose en un modelo exponencial generalizado multivariado, con un condicionante autoregresivo heteroscedastico (M-EGARCH). Los r...
10 citations
TL;DR: In this paper, the authors extend this previous research by developing and testing a conceptual framework, considering all of these constructs (complaint encounter-specific evaluations and relational constructs) within a business/consumer environment, showing that distributive and interactional justice perceptions of the service recovery impact the satisfaction with the way the complaint is handled, which, in turn, influences the consumer's level of trust.
Abstract: Although researchers and managers are increasingly paying attention to customer satisfaction, trust, loyalty and service recovery, not much is known about how these constructs interrelate with one another. Previous research has examined the interrelationships among subsets of these constructs. The authors extend this previous research by developing and testing a conceptual framework, considering all of these constructs (complaint encounter-specific evaluations and relational constructs) within a business/consumer environment. The findings show that distributive and interactional justice perceptions of the service recovery impact the satisfaction with the way the complaint is handled, which, in turn, influences the consumer's level of trust. Finally, consumer loyalty is affected by satisfaction, trust and perceived value. RESUMEN. A pesar del creciente interes demostrado por los investigadores y gerentes en la satisfaccion, confianza lealtad y recuperacion del servicio del cliente, es poco lo que ...
TL;DR: A regression model based on the relationship between 24 success factors, 2 classification variables, and the export performance of 133 Chilean exporters revealed that Chilean export companies that successfully developed foreign markets did so following a different strategy than their counterparts in more developed countries as discussed by the authors.
Abstract: In what seems to be a challenge to findings published in the literature, a regression model based on the relationship between 24 success factors, 2 classification variables, and the export performance of 133 Chilean exporters revealed that Chilean export companies that successfully developed foreign markets did so following a different strategy than their counterparts in more developed countries. Like such counterparts, the entry of Chilean firms into foreign markets was driven by consumer needs. They established cooperative alliances and networks with foreign companies, and gained access to foreign technology and know-how through means such as receiving foreign investment, engaging in joint research and development projects, and utilizing managers who had studied abroad. But unlike these counterparts, the Chilean firms were small, less likely to position their products in a market, less inclined to use foreign suppliers, and less likely to have a strategic plan. These differences can be attribut...
TL;DR: In this article, the authors assess whether there are differences in problem-solving styles between two culturally different groups of managers registered in MBA programs: Anglo American and Latin American, using Kolb's (1984 2006) Learning Style Inventory.
Abstract: The literature suggests that North American business-people differ from their Latin American counterparts with respect to specific behavioral traits. Our particular interest is in problem solving and in effecting changes in behavior to achieve better problem-solving capability. The purpose of the present study is to assess whether there are differences in problem-solving styles between two culturally different groups of managers registered in MBA Programs: Anglo American and Latin American. Using Kolb's (1984 2006) Learning Style Inventory, it was found that Anglo American managers tended to be relatively action-oriented, “Convergers” (they emphasize decision-making and use deductive reasoning), while Latin American managers tended to be reflection-oriented, “Assimilators” (they emphasize planning and like to create models in their analyses) in their problem-solving styles. The positive and negative aspects of each style are discussed and suggestions for improved decision-making are offered. RESU...
TL;DR: In this paper, the authors used correlation analysis, principal components analysis and Granger causality statistical techniques to compare the co-movement patterns of seven Latin American equity markets and the U.S. and Canadian equity markets during the five-year period before and after the 9/11 terrorist attacks.
Abstract: Empirical studies show that correlation between national equity markets tends to increase and the benefits of global portfolio diversification tend to decrease after events of global importance. A sufficiently long time period has passed since the September 11, 2001 terrorist attacks on the U.S. This time period provides a valuable opportunity to study if these events have changed the long-term co-movement patterns of international equity markets. We test this hypothesis using correlation analysis, principal components analysis and Granger causality statistical techniques by comparing the co-movement patterns of seven Latin American equity markets and the U.S. and Canadian equity markets during the five-year period before September 11 and during the five-year period afterward. Despite the findings of several previous studies on the world's other equity markets, our findings in this study indicate that correlation between the equity markets on the American continent decreased and the benefits of g...
TL;DR: In this paper, the authors analyzed the behavior of share prices in the first aftermarket year at the moment a company goes public for the first time, specifically in the case of Brazil, and found that Brazilian initial public offerings averaged large positive returns both in the short-term and for a one-year period.
Abstract: This article analyzes the behavior of share prices in the first aftermarket year at the moment the company goes public for the first time, specifically in the case of Brazil. First, we present evidence drawn from the international capital markets and how returns may be characterized. Next, we analyze current Brazilian capital markets and returns on shares for 30 companies that went public in the country between January 2004 and July 2006. We found that Brazilian initial public offerings averaged large positive returns both in the short-term and for a one-year period. RESUMEN. Este trabajo busca evidenciar como el precio de las acciones en IPOs tiende a comportarse en el mercado secundario durante el primero ano de negociaciones, especificamente en el caso brasileno. En primer lugar, se presentan las evidencias en el mercado internacional de capitales y mostramos que tipo de retornos se suele obtener. Luego, se lleva a cabo un analisis del mercado de capitales brasileno y de la rentabilidad en 30 ...
TL;DR: The most prominent personal values identified in a group of Brazilian executives were Civility, Self-direction, and Conformity, whereas the least important values were those related to conformity as mentioned in this paper.
Abstract: Human values are desirable goals that vary in importance and serve to guide people's lives. This study addresses the following issue: what personal value dimensions emerge from a group of Brazilian executives and which one is the most important? This is a descriptive and quantitative study, employing an exploratory factor analysis of personal values. The most prominent personal values were identified in a group of Brazilian executives. In this study, the personal value dimensions found were Civility, Self-direction, and Conformity. The dimension that received the highest scores was Civility, whereas the least important values were those related to Conformity. RESUMEN. Los valores humanos son metas deseables con diferentes grados de importancia, utiles para orientar la vida de las personas. Este estudio trata sobre el siguiente tema: ?Cuales son las dimensiones del valor personal que surge de un grupo de ejecutivos brasilenos, y cual de ellos es el mas importante? Este es un estudio descriptivo y ...
TL;DR: In this paper, the authors report on the development of a measurement tool to assess service quality in an executive education setting and two studies were performed at a Peruvian business school to establish the dimensionality of the measurement instrument.
Abstract: This article reports on the development of a measurement tool to assess service quality in an executive education setting. For this purpose, two studies were performed at a Peruvian business school. In the first study, data were collected from 205 executive students to establish the dimensionality of the measurement instrument. The follow-up study, performed a year later with data gathered from 354 executive students, was devoted to examining the stability of the factor structure in addition to the reliability and construct validity of the scale's scores. Results provide strong support for the validity and reliability of the scores on the five EXEQ subscales. The findings also showed that students not only evaluate executive education service quality through five factors but that they also view overall executive education service quality as a higher-order construct that captures elements of all its constitutive dimensions. RESUMEN. El proposito de este estudio es informar sobre el desarrollo de u...
TL;DR: In this article, a credit risk model for consumer loan portfolios in Brazil is proposed, and the dependence among the credit losses in the different segments of the portfolios is modeled through an elliptical copula function.
Abstract: We propose a credit risk model for consumer loan portfolios in Brazil. Consumer profiles and the risk classification of credit operations are used to segment the portfolios. Credit loss distributions for each segment are selected and used in a Monte Carlo simulation process to generate the loss distribution of the portfolios. The dependence among the credit losses in the different segments of the portfolios is modeled through an elliptical copula function. Statistical tests are done and show that the proposed model is adequate to represent credit loss distributions in consumer credit in Brazil. RESUMEN.Proponemos un modelo para los creditos de riesgo de la cartera de prestamos al consumidor en Brasil. Los perfiles del consumidor y la clasificacion del riesgo de las operaciones crediticias se utilizan para segmentar la cartera. La distribucion de las perdidas de los creditos de cada segmento se seleccionan e utilizan en un proceso de simulacion Monte Carlo, para generar la distribucion de las perd...
TL;DR: This paper examined how this change is shaping the quality of foreign direct investment (FDI) in Mexico's maquiladora industry and provided case studies drawn from five startup plants located in the only major Mexican city that has seen maquila employment gains over t...
Abstract: Studies have consistently shown that exports manufactured in China have taken a significant market share away from Mexican producers in the United States (US) import market. In this paper, we examine how this change is shaping the quality of foreign direct investment (FDI) in Mexico's maquiladora industry. Various thought leaders have suggested that low wage Chinese competition will force maquilas of out labor intensive sectors and will make them lean towards higher value added, technology intensive activities. An alternative perspective has been provided by those who argue that Mexico's unique comparative advantage is its geographic proximity to the US, and that there is no reason to believe proximity dependent maquilas will fit into a high-tech, high value added model. To determine which of these scenarios is more accurate, we summarize relevant literature and provide case studies drawn from five startup plants located in the only major Mexican city that has seen maquila employment gains over t...
TL;DR: The belief that individual differences or choice behavior in brand preference are caused by personality differences has not always been supported by empirical research as discussed by the authors, however, it is not always supported by evidence.
Abstract: Brands are successful because people prefer them to ordinary products. In addition to the psychological factors, brands give consumers the means whereby they can make choices and judgments. The secret to successful branding is to influence the way consumers perceive the company or product, and brands can affect the minds of customers by appealing to acquired and analyzed information. The inflow and outflow of information about brands through inter-personal communication may act as a device for coordinating consumers' expectations resulting from the purchasing decisions of other consumers in markets with consumption externalities. The belief that individual differences or choice behavior in brand preference are caused by personality differences has not always been supported by empirical research. RESUMEN. Las marcas son exitosas porque las personas se inclinan a preferirlas a los productos comunes. Ademas de los factores psicologicos, las marcas tambien brindan a los consumidores los medios necesa...
TL;DR: In this paper, the authors investigated the relative importance of dimensions of risk when the consumer in Brazil is deciding on purchasing a service online and found that value for money and psychological risk were the only dimensions considered relevant by respondents when making their online purchase decision.
Abstract: Marketing literature presents evidence that perceived risk may be one of the deterrents preventing the quicker spread of the Internet as a purchasing channel. This study investigates the relative importance of dimensions of risk when the consumer in Brazil is deciding on purchasing a service online. The results suggest that value for money (corresponding to a combination of financial and performance risks) and psychological risk were the only dimensions considered relevant by the respondents when making their online purchase decision. Time risk seemed to be mediated by these two dimensions. The implications of this study can be applied by both marketing professionals and academic researchers. RESUMEN. La literatura de mercadeo presenta pruebas de que el riesgo percibido puede ser uno de los obstaculos que previenen la diseminacion acelerada de la Internet como un canal de compras. Este estudio investiga la importancia relativa de las dimensiones del riesgo inherentes al instante en que el consumi...
TL;DR: In this paper, a multivariate statistical analysis of canonical correlation analysis enabled the investigation of the overall relationship amongst a group of variables reflecting IT adoption (comprising the number of microcomputers per employee (median value), the percentage of firms providing computer training for employees, the proportion of firms with Internet connection, and the percent of firms having intranet (internal data communication network).
Abstract: Rapid price declines are likely to facilitate the increasing diffusion of information technology (IT) in industrial firms. Recent contributions by Bresnahan et al. (2002), however, have emphasized the interdependence between IT adoption and workplace organization. The present paper undertakes an exploratory analysis of the complementarities between IT adoption and the utilization of modern organizational practices. The analysis considers 3-digit sectoral data on the Brazilian manufacturing industry in 1996. A multivariate statistical analysis of canonical correlation analysis enabled the investigation of the overall relationship amongst a group of variables reflecting IT adoption (comprising the number of microcomputers per employee (median value), the percentage of firms providing computer training for employees, the percentage of firms with Internet connection and the percentage of firms with intranet (internal data communication network)), and amongst another group of variables reflecting the ...
TL;DR: In this article, the authors identify the intensity of the existent relationships in the explanatory topology of corporations' financial performances, comprised by the three dimensions of macroeconomic context, resource management strategies and relationships with stockholders.
Abstract: With the purpose to identify the intensity of the existent relationships in the explanatory topology of corporations' financial performances, comprised by the three dimensions of macroeconomic context, resource management strategies and relationships with stockholders, Brazilian corporations which were active from the year of 1996 to 2000 were analyzed. Based on the understanding of the relationships among the three dimensions previously mentioned, a structural model was adopted and as the methodology for the measurement and analysis of the relationships among constructs, the parameters estimation method used was the Partial Least Squares. As a result, the resource allocation strategies were identified as the critical factor in the performance of the analyzed corporations. RESUMEN. Las empresas brasilenas de capital abierto fueron estudiadas a lo largo del periodo 1996 a 2000, con el objeto de identificar la intensidad de las relaciones existentes en la topologia explicativa del desempeno financi...
TL;DR: In this article, the authors analyzed the relationship between withdrawals from Brazilian open retirement funds, portfolio composition (fixed income or equity) and frequency of statement sending (monthly, quarterly, semiannual or annually).
Abstract: This paper analyzes the relationship between withdrawals from Brazilian open retirement funds, portfolio composition (fixed income or equity) and frequency of statement sending (monthly, quarterly, semiannually or annually). Our results indicate that equity retirement plans present a lower withdrawal index when compared to that of fixed income plans. Furthermore, the higher the statement sending frequency, the lower the withdrawals from open retirement plans. However, withdrawals from equity retirement plans tend to increase when statements are sent to investors more frequently. These phenomena can be explained by behaviorist theories, such as the concept of myopic loss aversion. In a context where loss aversion is present, the more frequently the investor evaluates his or her portfolio, or the shorter the investment horizon, the less attractive he or she will find investment in assets with a high rate of return and risk, such as equities. This behavior occurs not only regarding short-term invest...