Adopting imported managerial expertise in developing countries: the Brazilian experience

Abstract

Emerging economies are drawing increasing attention from investors and foreign businesses. However, doing business within emerging countries can be frustrating. As a case in point, in the largest South American economy there is a saying that goes: 'Brazil is not for beginners.' For casual foreign observers, the country may appear to have the same institutions and traits as developed Western nations. But acting on that assumption may well lead to unsuccessful, frustrating experiences. Behind the Brazilian facade lie institutions still under construction and a complex. hybrid, and everchanging business culture. In this article, we seek to contribute to the understanding of the Brazilian business environment. We deal specifically with the importation and adoption of managerial expertise. We propose a framework to explain the reasons for adoption of this expertise and the reaction of Brazilian companies to it. Based on field surveys, we have identified the three most typical approaches to the adoption of imported managerial expertise: unreasoned adoption, ceremonial behavior, and managerial anthropophagy (cannibalism). We propose that the latter may be at once a perspective for analysis and an appropriate strategy to carry out successful enterprises in Brazil. We also present suggestions to increase the possibility of success for business ventures in Brazil.