The influence of formal institutions on the internationalization of companies in an emerging country

Jefferson Marlon Monticelli, Cyntia Vilasboas Calixto, Silvio Luís de Vasconcellos, Ivan Lapuente Garrido


Purpose – The goal of this study is to use the institution-based view
as the background for an investigation of how formal institutions
influence the internationalization processes of firms from an emerging

Design/methodology/approach – Our case study is based on semistructured
interviews with twenty-one representatives of formal
institutions and firms in the Brazilian wine industry.

Findings – It was noted that formal institutions have positive influences
on the internationalization of Brazilian wineries by providing learning,
relationship networks, intelligence about foreign markets, costs
reduction, internationalization of business processes, and by promoting
the home country’s image as a wine producer in foreign markets, and as
a recognized supplier to the domestic market. They also have negative
influences, as excessive bureaucracy, strikes, erection of legal barriers to
trade with other countries, insufficient technical knowledge, high taxes,
and favoritism benefiting the largest wine producers in the industry.

Originality/value – The paper closes with suggestions for future
research on how phenomena such as the relationship strategies
established by the wineries impact upon internationalization and how
decisions of a political nature made by formal institutions influence
the wine industry, providing a new outlook on the internationalization
of these firms.



Institutions in emerging economies; formal institutions; institutional environment; neo-institutional theory; competitive strategies of multinational enterprises.


Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM

Av. da Liberdade, 532 - São Paulo - SP Brasil Cep. 01502-001 Tel. 55 11 3272-2340
 The RBGN adopts the Creative Commons licens CC-BY Creative Commons Attribution 4.0 

The RBGN has the financial support from Fundação Escola de Comércio Álvares Penteado - FECAP and development agencies Conselho Nacional de Desenvolvimento Científico e Tecnológico - CNPq and Coordenação de Aperfeiçoamento de Pessoal de Nível Superior – CAPES.

Desenvolvido por:

Logomarca da Lepidus Tecnologia