FACTORS INFLUENCING THE DE-INTERNATIONALIZATION OF BRAZILIAN RETAIL MULTINATIONALS

Abstract

ABSTRACT The purpose of this paper is to analyze the reasons and factors that lead to the de- internationalization of Brazilian retail multinationals. Recent geopolitical trends and increased protectionism are slowing globalization. As a result, multinationals are reconsidering their international activities, and some are realigning resources in order to defend their home market position. This paper explores the factors that triggered the de-internationalization of five Brazilian retail multinationals. These companies are in the footwear, footwear and handbags, accessories, textile (clothing), and jewelry industries. We borrowed insights from de-internationalization theoretical frameworks to identify factors that lead to the retraction of multinationals from international markets. We gathered data through in-depth interviews with top managers at these five companies. Interviews were recorded, verbatim transcriptions were carried out, and their content was analyzed. With the aid of mixed research methods that combine qualitative (Content Analysis) and quantitative (Correspondence Analysis) techniques, we found that the key factors leading to the de-internationalization of Brazilian retail multinationals are mostly internal drivers. These key factors are related to financial, portfolio, and organizational restructuring issues. Another key driver is the re-configuration of regional and country markets in which the firms operate. The goal of these restructuring efforts is to increase efficiency. The study also provides empirical validation of factors identified in the de-internationalization literature. Moreover, the de-internationalization process is new to Brazilian multinationals and the findings of this study may be relevant to other firms that are planning to follow the de-internationalization steps. Keywords de-internationalization; multinationals; retail; Brazil.