INTEGRATION OF BUSINESS UNITS OF WEG: HOW TO GENERATE POSITIVE EXTERNALITIES IN THE PROCESS OF INTERNATIONALIZATION BETWEEN BUSINESS UNITS OF A GLOBAL COMPANY?

Abstract

Objective: This teaching case describes the trajectory of the internationalization of WEG, a Brazilian company producer of electric engines. This study proposes to fulfill the following objectives: (a) comprehend the company’s process of internationalization from the perspective of international business theories; (b) analyse why the way taken in the process of internationalization by the business unit WEG Automação occurred in a sequential way to that of WEG Motores; and, (c) reveal if the network of WEG Motores generated positive externalities to the internationalization of WEG Automação. Method: Teaching case, based on real case. The primary and secondary data were used for the development of this teaching case. The primary data was obtained through a semistructured interview with the director of WEG Automação and mangers of the unit, made during late 2016. The interviews were transcripted and used together with the secondary data for the development of this teaching case. The secondary data was obtained using institutional information available at WEG’s website and documents of the company. Besides, the interviewers performed direct observation during visits of a long duration to the company. Relevance/originality: The company’s move of internationalization shows its value inside the context of emerging multinational companies, considering that different units feed themselves with internal and external skills during the process, corroborating aspects of the behavioral approach of the Uppsala Models. Theoretical / Methodological Contributions: The case contributes to apply theorical lens of International Business, as Network and Uppsala Model to explain the movement of internationalization process of a Global firm, specifically to compare the process between two of its units business – WMO and WAU. Social / management contributions: This teaching case application is recommended for graduation or undergraduate courses in Administration, Foreign Trade and International Management, to discuss in subjects such as: Internationalization of Companies, International Business, Internationalization Theories, and Emerging Markets. The use of the case help to improve analytical skills of students, about real situation of an emerging market firm that become a global player. Keywords: Internationalization. Emerging Multinational. Network. Business units of WEG. Teaching Case.