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The expansion of emerging economies' multinationals: the case of Embraer in Portugal

Andrea Goldstein and Manuel Godinho ()

International Journal of Technological Learning, Innovation and Development, 2010, vol. 3, issue 3, 226-244

Abstract: Embraer, a Brazilian aircraft manufacturer, has transformed itself after privatisation in 1992 to become a world market leader in a high-tech industry traditionally dominated by OECD-based companies. In recent years Embraer has also become an aggressive foreign investor and took over Portugal's OMGA in 2005 as part of a privatisation process. This paper analyses the organisational processes being deployed to consolidate the existing knowledge base and build new capabilities. We argue that OGMA top management lacked a clear view about how to integrate technology, organisational change and marketing to achieve competitiveness, whereas at Embraer management played a key role in aligning innovation for dynamic capabilities in different areas. We also examine the implications of the industry slowdown that has hit Embraer, and other companies, since 2008. Finally the paper addresses Embraer's recent manufacturing expansion in Portugal by investing in a green site where it intends to install two new plants.

Keywords: aerospace industry; foreign direct investment; FDI; organisational learning; knowledge management; technology strategy; latecomer firms; emerging economies; Brazil; Portugal; MNCs; multinational corporations; aircraft manufacturing; technology integration; organisational change; marketing; innovation. (search for similar items in EconPapers)
Date: 2010
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