Title: Drivers of internationalisation of companies from emerging economies: comparing Petrobras (Brazil) and PDVSA (Venezuela)

Authors: Andrea Goldstein, Cesar Baena

Addresses: OECD, 2, rue Andre Pascal – 75016 Paris, France. ' BEM Bordeaux Management School, 680 Cours de la Liberation, Talence 33405, France

Abstract: The history of the global oil industry is essential to understand the rise of multinational enterprises. Petrobras, in particular, has started to exploit in international markets the world-class technology it developed to exploit deepwater oil fields. PDVSA, on the other hand, has focused its international expansion strategy in building a network of refineries in key consuming markets. This paper examines the cases of Petrobras and PDVSA. The Petrobras experience confirms that the rise of emerging economies is leading to a transformation in global business in which foreign direct investment is driven not only by the exploitation of traditional firm-specific competencies, but also by the exploration of new patterns of organisational innovation. PDVSA|s case illustrates that for a developing country multinational, the path towards decision-making autonomy from government is mired with many obstacles; key commercial strategies can be challenged by a government seeking to impose its agenda on the company.

Keywords: multilatinas; technological innovation; DMNCs; Petroleos de Venezuela, S.A.; PDVSA; oil industry; internationalisation; developing countries; multinational corporations; MNCs; Brazil; Venezuela; National Oil Companies; NOCs; Petrobras; emerging economies; foreign direct investment; FDI; organisational innovation.

DOI: 10.1504/IJTLID.2010.039165

International Journal of Technological Learning, Innovation and Development, 2010 Vol.3 No.4, pp.392 - 407

Published online: 22 Mar 2011 *

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