How do MNEs manage their socio-political interactions in emerging countries?

: the case study of Saphety in Latin America

Abstract

The purpose of this dissertation is to analyse how MNEs manage their socio-political interactions with business and non-business actors in emerging countries. With this study we are not only filling a gap in the literature regarding the relationships with non-business actors, but at the same time we are exploring a real challenge of a company.
To answer this research question we conducted a qualitative study, using the case-study method. The company studied was Saphety, a Portuguese IT company with special focus on the internationalization to Latin America. We mostly used primary data through semi-conducted interviews. Nonetheless, we also used secondary data in the form of internal and external documentation.
Our results show that there are several determinants that influence the type of strategy undertaken by the MNEs to manage the social-political relationships. So, for MNEs to be able to chose the adequate strategy they first should establish legitimacy, power, trust and commitment. However, in the case of Brazil we reject that power can have a positive influence. Furthermore, for this specific case, we also considered important in Brazil the entry mode and in Colombia the business networks of the firm clients. Moreover, Saphety uses a supportive relationship to manage the socio-political interactions. While the strategies undertaken by the socio-political actors towards the firm will depend on each actor. In addition, the firm established a cooperative relationship with both host countries governments. Finally, we found evidence that the socio-political relationships managed by Saphety have a positive impact on firm performance.

Date of Award	27 Jul 2017
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Laure Leglise (Supervisor)