The development of organizational competences in different management models of subsidiaries of Brazilian multinationals companies

Felipe Mendes Borini and Maria Tereza Leme Fleury

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), 2010, vol. 14, issue 4, 575-593

Abstract: The aim of this paper is to understand the models for developing managerial competences in different types of Brazilian multinationals. The main premise is that Brazilian multinationals need to develop non local competences in their subsidiaries in order to compete on equal terms with established multinationals in the global market. The article is based on a research survey conducted with sixty-six foreign subsidiaries of thirty multinationals of Brazilian origin. The results show that the development of non local competences is associated with four essential factors. Subsidiaries with non local competence show greater insertion of the subsidiary in foreign business networks, location in dynamic competitive contexts, greater intensity of initiatives and a strong integration between headquarters and subsidiaries. The lack of initiatives and location in adverse contexts characterize the development of specific competences. Lower insertion of the subsidiary in foreign business networks and less integration with the internal network characterize the development of local competences.

Date: 2010
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