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
Date Written: September 15, 2018
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: Suggested Citation