Sixteenth International Conference on Interdisciplinary Social Sciences

Abstract

The present research had compared how Uppsala and Bartlett & Ghoshal (B&G) models explain the internationalization process of the Brazilian pulp producers using the case of Fibria. The Uppsala model describes the developments of capabilities that enable the firm to move towards higher commitments abroad. Despite its sine-qua-non dependence on foreign markets, it is unlikely that Fibria will internationalize its production to another country, given the country-specific advantages that the company has in Brazil. Nevertheless, Fibria set its structure abroad even when the direct exports would suffice to reach the markets without any foreign direct investment. B&G deals with the aspects of the organizational structure and described the Transnational type as the evolution of the international firm. In their typology, Fibria was a Global and Ethnocentric type, but interestingly, elements of Transnational and Geocentric models were also observed in the company. Both theories overlap or complement each other in many aspects. However, they could not explain the peculiarities of the internationalization of Fibria. One reason is the lack of country-related elements in these models. Eventually, comparisons between theories such as those presented enable decisionmakers to align the corporate strategy using suitable models and policymakers to understand and improve the attractiveness of their countries, bearing in mind the limitations that each method entails.