The Drivers of Successful Regional Expansion in Latin America: A Historical Analysis of Beachhead Choice, Country Sequence and Regional Knowledge

33 Pages Posted: 26 Nov 2018

See all articles by Raju Parakkal

Raju Parakkal

Thomas Jefferson University

Joseph Johnson

University of Miami - Department of Marketing

Sherry Bartz

University of Miami

Date Written: September 15, 2018

Abstract

Research that examines beachhead choice and speed of expansion in the context of a regional entry strategy is absent in international business literature. To address this gap, we developed a three-part model of country-by-country expansion and applied it to a uniquely compiled dataset of foreign firms that entered various Latin American countries between 1990 and 2005. We found that a firm’s regional speed and performance in Latin America were sensitive to its beachhead choice and its sequential expansion path. The implication is that managers should weigh the regional knowledge a country provides when selecting a beachhead for regional expansion.

Keywords: Latin America, Regional Expansion, Beachhead Choice, Sequential Choice, Regional Knowledge, Firm Performance

JEL Classification: F23, M16, M30

Suggested Citation

Parakkal, Raju and Johnson, Joseph and Bartz, Sherry, The Drivers of Successful Regional Expansion in Latin America: A Historical Analysis of Beachhead Choice, Country Sequence and Regional Knowledge (September 15, 2018). University of Miami Business School Research Paper No. 18-15, Available at SSRN: https://ssrn.com/abstract=3276482 or http://dx.doi.org/10.2139/ssrn.3276482

Raju Parakkal (Contact Author)

Thomas Jefferson University ( email )

4201 Henry Avenue
Ravenhill 207
Philadelphia, PA Philadelphia 19144
United States

Joseph Johnson

University of Miami - Department of Marketing ( email )

United States

Sherry Bartz

University of Miami ( email )

Coral Gables, FL 33124
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
28
Abstract Views
399
PlumX Metrics