Drivers of internationalisation of companies from emerging economies: comparing Petrobras (Brazil) and PDVSA (Venezuela). (23rd March 2011)

• Record Type: Journal Article
• Authors: Goldstein, Andrea; Baena, Cesar
• Is Part Of: International journal of technological learning, innovation and development. Volume 3:Number 4(2010)
• Page Start: 392
• Page End: 407
• Publication Date: 2011-03-23
• Subjects: multilatinas -- technological innovation -- DMNCs -- Petroleos de Venezuela, SA -- PDVSA -- oil industry -- internationalisation -- developing countries -- multinational corporations -- MNCs -- Brazil -- Venezuela -- National Oil Companies -- NOCs -- Petrobras -- emerging economies -- foreign direct investment -- FDI -- organisational innovation; Organizational learning -- Periodicals; Technological innovations -- Economic aspects -- Periodicals; Industrial organization -- Technological innovations -- Developing countries -- Periodicals; Diffusion of innovations -- Developing countries -- Periodicals; 338.064091724
• Languages: English
• ISSNs: 1753-1942

Abstract

The history of the global oil industry is essential to understand the rise of multinational enterprises. Petrobras, in particular, has started to exploit in international markets the world-class technology it developed to exploit deepwater oil fields. PDVSA, on the other hand, has focused its international expansion strategy in building a network of refineries in key consuming markets. This paper examines the cases of Petrobras and PDVSA. The Petrobras experience confirms that the rise of emerging economies is leading to a transformation in global business in which foreign direct investment is driven not only by the exploitation of traditional firm-specific competencies, but also by the exploration of new patterns of organisational innovation. PDVSA's case illustrates that for a developing country multinational, the path towards decision-making autonomy from government is mired with many obstacles; key commercial strategies can be challenged by a government seeking to impose its agenda on the company.