Chilean Multinationals: Contexts, Paths and Strategies

Abstract

This chapter analyses the expansion strategies of the largest Chilean multinational firms, within the context of the internationalisation of Emerging Market Multinational Enterprises (EMNEs) more generally, and the evolution of the Chilean economy since the middle of the 1970s. The objective is to explain the factors that led to a high degree on internationalisation on the part of Chilean firms compared with other Latin American countries, and to establish a dialogue between theory and history. After examining different theories on the growth of international business in general, and EMNEs in particular, the paper considers the historical examples of foreign expansion among the 12 Chilean firms with the highest ‘internationalisation index’ according to América Economía’s ranking in 2015. It finds that for the most part these are diversified business groups which took advantage of early privatisations in Chile, the professionalisation of management, and the acquisition of experience and knowledge in a competitive market. They tended to expand first into neighbouring countries, successfully adapting to different cultural and economic environments. They also often grew through acquisitions rather than ‘greenfield’ investments. This suggests that international business theories need to be modified to explain the growth of EMNEs, rather than abandoned completely.