Latin American Companies Research Articles

Complementarities in R&D and Innovation Decisions: An Enquiry on an Extensive Sample of Latin American Companies

This study uses an extensive sample of company data referring to seven Latin American countries to analyze the potential influence of simultaneity and heterogeneity in determining decisions to commit to R&D and innovation outputs. First, the analysis focuses on the decisions about spending on in-house and external research. Second, the outcomes of three different innovations: process, product, and organizational. Choices were considered simultaneously by employing a multivariate probit estimation model. In so doing, the enquiry considered the possible systematic interdependencies among the decisions. The results indicate that the two R&D decisions are interdependent. However, a different picture emerged in relation to innovation outputs, in which the correlations coefficients were small with unexpected signs. This may indicate a structural weakness of the technological production system in Latin America, wherein the synergies, complementarities, and complex relationships usually involved in the process of innovation are not fully developed.

Information Management and User Engagement in Corporate Social Responsibility Communication: A Comparative Analysis of Chinese and Latin American Companies on WeChat and Facebook

China and America are world’s leading countries in technology, digitalization and advanced systems. Both countries seek to maximize their system qualities and customer-centered services to capture their engagement and long-term interaction. In this domain, this study investigated the impact of information system factors on users’ engagement with the mediation of corporate social responsibility (CSR). This study was structured according to quantitative methodology, wherein the data was collected through a survey questionnaire comprising close-ended questions on a Likert scale. The data was analyzed on SPSS 20 and AMOS 24.0. Using the SEM and specific indirect effects, the study encountered all designed paths as significant. Moreover, the comparative analysis revealed that both countries had a significant difference in terms of information system quality, CSR and user engagement with significance level >0.05 and 0.01. With these findings, this study shared valuable contributions, implications and suggestions for the policymakers, managers and IT experts that how far enhancing their information systems and their backend information and algorithms to gain an alleviated user engagement

Innovation and economic sustainability in small and medium-sized Latin American companies

Innovation and economic sustainability in small and medium-sized Latin American companies

Capital structure in Latin America: institutional and macroeconomic effects

PropósitoEste estudio analiza la influencia de los factores institucionales y macroeconómicos, además de los factores a nivel de empresa, en la estructura de capital de las empresas industriales cotizadas latinoamericanas (LATAM). El objetivo es proporcionar evidencia empírica sobre las empresas latinoamericanas desde (1) la perspectiva de las teorías tradicionales trade-off y pecking order, y (2) desde los enfoques que introducen el impacto de los factores institucionales y macroeconómicos en el análisis.Diseño/metodología/enfoqueEl análisis empírico adopta una metodología econométrica, utilizando datos de panel de empresas de Argentina, Brasil, Chile, Colombia, México y Perú, de 2008 a 2018.HallazgosLos resultados indican que, además de las características a nivel de empresa, las características institucionales y macroeconómicas de los países influyen en la estructura de capital de las empresas latinoamericanas.Limitaciones/implicaciones de la investigaciónEl estudio presenta algunas limitaciones, principalmente se centra en empresas cotizadas provenientes de solo seis países de LATAM, debido a la falta de datos. Sería recomendable realizar estudios similares con factores de gobierno corporativo, con empresas familiares y PYMES.Implicaciones prácticasLos resultados pueden servir de referencia para los agentes económicos y profesionales, animándolos a considerar la evolución de las variables institucionales y macroeconómicas a la hora de tomar decisiones. Académicamente, nuestros hallazgos verifican la validez de las teorías convencionales y la relevancia de incorporar variables institucionales externas en el marco de la estructura de capital.Originalidad/valorLa importancia de esta investigación radica en analizar la estructura de capital de empresas en un área geográfica poco explorada, LATAM, incluyendo factores institucionales y macroeconómicos y utilizando la nueva base de datos Orbis.

Comparative analysis of accounting information quality amongst French, Brazilian and Latin American companies

Purpose: This work aimed to compare the Accounting Information Quality (AIQ) of publicly traded companies in markets with different levels of economic development, represented by France, Brazil and other Latin American countries (these together). Methodology: The methodological approach was quantitative, using descriptive and exploratory statistics, and regression with unbalanced panel data. The data used encompassed the following periods: between 1987 and 2017, for the French market; between 1995 and 2017, for the Brazilian market; and between 1989 and 2015, for the Latin American market. Results: The results pointed to structural differences in AIQ in financial statements between the markets analyzed, indicating that the more developed market has better AIQ. Contributions of the Study: As a practical contribution, this research can support investor decisions, while the academic knowledge generated reveals that markets in different economic contexts have different levels of AIQ.

Exploring the Role of Chatbots in the Recruitment Process in Latin America

Objective: This study aims to explore the implementation and expectations of using chatbots in the personnel recruitment process in Latin American companies, focusing on their application, challenges, and perceived benefits. Theoretical Framework: Personnel recruitment and selection have evolved with the incorporation of Artificial Intelligence (AI), specifically through the use of chatbots. The literature highlights AI's ability to automate repetitive tasks, improve the efficiency of the recruitment process, and reduce human biases. However, there is a lack of research in the Latin American context regarding the experience and skills necessary to successfully implement chatbots in recruitment. Method: A multiple case study was conducted in seven Latin American companies from various sectors, using qualitative interviews with human resources professionals and managers. The case study methodology was applied to understand the implementation and expectations of using chatbots in the recruitment process. Transcriptions of the interviews were analyzed using a constructivist approach oriented towards grounded theory. Results and Discussion: The research presents two relevant aspects, previous experience with chatbots and expectations for their use in the recruitment process. Chatbots are primarily used for customer service, replacing traditional methods such as email and phone calls. Best practices include programming aspects, information quality, feedback, and change management. Benefits include the automation of repetitive tasks, improvement in efficiency, and cost reduction, while challenges include proper programming, bias management, and cultural adaptation. Regarding the use of chatbots and the Recruitment Process, their potential benefit in shortening process times was perceived. Various activities were identified where they could be useful, especially in the initial stages of recruitment, although the need for a human component in the final stages to evaluate emotional and aptitude aspects was recognized. Chatbots are considered reliable as a complement in the early stages of the process, but challenges are posed in programming, bias management, and adaptation to recruitment needs. Research Implications: The successful implementation of chatbots in the recruitment process could improve efficiency, reduce costs, and enhance the company's image. However, careful consideration of identified challenges such as proper programming, bias management, and integration with the human component of recruitment is required.

Predicting financial distress in Latin American companies: A comparative analysis of logistic regression and random forest models

Latin America represents a growing financial market. The performance of its private sector corporations is critical, as inadequate performance and financial distress can lead to significant losses for many stakeholders. This study assesses the efficacy of Logistic Regression (LR) and Random Forest (RF) techniques in predicting corporate distress up to three years in advance. Additionally, we discuss relevant indicators and compare our findings in two different scenarios (pre versus pandemic period). The results indicate that RF outperforms LR in terms of predictive power and error levels. The most effective predictors remained consistent over the 20-year period but varied between the two models. Importantly, the performance levels remained unaffected by the COVID-19 pandemic.

The impact of environmental innovation and national culture on ESG practices: a study of Latin American companies

PropósitoExaminar cómo las prácticas de Medio Ambiente, Social y Gobierno Corporativo (ESG) se ven influenciadas por las innovaciones ambientales y cómo las dimensiones culturales moderan esta interacción en las empresas latinoamericanas.Diseño/metodología/enfoque:Se estudiaron 157 empresas de 6 países latinoamericanos entre 2010 y 2021, con un total de 1,204 observaciones. Los datos se recopilaron de Refinitiv Eikon® y los resultados se generaron utilizando regresiones de mínimos cuadrados ordinarios, con el país y el año como variables de control.Hallazgos:El desempeño ESG es mayor en empresas que invierten en innovación ambiental; la innovación afecta positivamente a factores ambientales, sociales y de gobierno corporativo individuales; y la masculinidad, el individualismo, la indulgencia y la distancia de poder moderan positiva o negativamente la relación entre la innovación y el desempeño ESG, así como las dimensiones ambientales y sociales.OriginalidadNuestro estudio llena un vacío al examinar la influencia específica de la innovación ambiental en el desempeño ESG, especialmente a través de sus interacciones con las dimensiones culturales, en una muestra de empresas latinoamericanas.Implicaciones prácticasMejor comprensión de cómo la innovación ambiental puede mitigar la desigualdad, la pobreza y los problemas ambientales en América Latina, promoviendo el desarrollo equitativo y la preservación del medio ambiente.Implicaciones socialesLos países latinoamericanos muestran niveles significativos de pobreza, heterogeneidad social y productiva, y deficiencias en prácticas sostenibles. Por lo tanto, proporcionar información sobre la innovación como incentivo para políticas más sostenibles puede promover estas prácticas.Limitaciones/implicaciones de la investigaciónNuestros hallazgos contribuyen al cuerpo de conocimiento sobre prácticas sostenibles en diferentes culturas. Llamamos la atención de los reguladores sobre el impacto de la innovación y la cultura en las prácticas ESG en diferentes países.

Corporate structure and prevention: The three lines model applied to Latin American companies

The economic environment in which enterprises operate is increasingly harsh and complex, making business more complex, volatile and uncertain. This context requires a change in the management model based on the three fundamental pillars of governance, risk management and regulatory compliance. In this sense, the presentation of the three-line model is considered particularly useful, as it has become one of the most recognized management tools internationally due to its flexibility and adaptability. Therefore, the purpose of this study is to examine the current literature on this management model and then analyze its applicability in business practice through a case study. In particular, the analysis of four companies in the Ibero-American energy sector (Petrobras, Codelco, Ecopetrol, and Iberdrola) reveals that, although the adaptation of the model is generally comprehensive and universal in all aspects, its flexibility is very Large allows adaptation to any organization’s needs and structure. Finally, the study draws some conclusions weighing the theoretical development of the three-line model and its applicability and usefulness to managers as well as researchers and legislators who want to strengthen national business structures.

International performance of Latin American companies: institutional and reputational perspectives

PurposeThis study aims to analyze the effect of institutional dimensions and corporate reputation (CR) on the performance of Latin American companies using a study framework built on institutional theory.Design/methodology/approachThe authors used a panel data analysis of 45 companies from the 6 biggest economies in Latin America for 5 years.FindingsThe authors found a positive effect between institutional independence and transparency perception, certifications, social norms, chief executive officer (CEO) international experience, board of directors' networks and CR with international performance (IP) and a negative effect between property rights protection and the perception of corporate social responsibility (CSR) with performance.Originality/valueThe uniqueness of this paper is based on the analysis of institutional and reputational variables on the IP of firms from emerging markets.

Corporate Social Responsibility Latin America: A Systematic Review and Future Research Agenda

This research topic studies the main implications and approaches of social responsibility in Latin American companies, and becomes a topic of great importance due to the need of many organizations to transcend and differentiate themselves with their target audience, promoting inclusive and sustainable growth, managed by policies that promote welfare and development. The databases used for this systematic review were Dialnet, Scielo, Redalyc and Scopus, using information from 2012 to 2022; likewise, the method used was the search of empirical literature with the analysis of descriptive designs and quantitative and qualitative methodological approaches. On the other hand, the country with the highest number of studies on the subject was Mexico with 24%, followed by Colombia with 20%; likewise, descriptive and explanatory studies of quantitative type are addressed; and among the populations with the highest study implication are companies in the commercial and productive area. Finally, the objective of this study is to determine the factors that induce Latin American companies to apply corporate social responsibility; one such factor being environmental leadership, as the main finding, which seeks to maintain standards of image and acceptance in the market that differentiate it from the competition; the next factor is ethical labor actions, which ensure a fair internal system in relation to its stakeholders, who are the heart of the operation of its business; and finally, maintaining a successful corporate philanthropy, which strengthens human relations and creates awareness of respect and quality in the organizations. The contribution of this research will allow future research to know the repercussions of corporate social responsibility practices and how these factors influence the creation of a competitive image valued by the market.

Innovation Training and Entrepreneurial Climate in Emerging Market Multinational Corporations

Despite their innovation practices, Latin American companies seem to show low levels of corporate entrepreneurship. More research on corporate practices directed at infusing an entrepreneurial climate in the region is needed. This study draws on a recent theory that brings together configuration theory with prior corporate entrepreneurship conceptualizations. With this study, the authors test whether innovation training programs increase the entrepreneurial climate of multinational corporations from Latin American emerging markets. The authors of this study collected data from a sample of 2,796 employees of a Colombian multinational, divided into two groups of trained and untrained staff. They hypothesise that the corporate entrepreneurship climate would be higher in the trained group. They specify and validate a series of multigroup structural equation models to test their hypothesis. The results of this study suggest that some dimensions of entrepreneurial climate are higher when companies implement innovation programs.

The effects of innovations on peruvian companies’ sales: The mediating role of KIBS

Companies increasingly embrace open business-to-business innovation. In this context, knowledge-intensive business services (KIBS) play a crucial role as they can provide services and know-how to companies. As comparisons of digital innovation in Latin American companies are scarce, a more in-depth study is required of the role that KIBS plays in their digital innovation. This study therefore investigates the impact of KIBS and the implementation of innovations, including digital ones, on the sales of companies. Utilizing a Partial Least Squares Structural Equation Modelling (PLS-SEM), we scrutinize data from 959 companies in Peru. The findings reveal that internally implemented innovations do not have a statistically significant direct effect on sales. However, outsourcing KIBS emerges as a positive mediator in this relationship. Specifically, we find that companies that subcontract those services are more likely to implement innovations and to achieve a positive impact on their sales in the short-term. Despite the opportunities that digital innovation brings, its direct effect on companies’ sales still needs to be improved, especially for manufacturing companies.

Relationship between Women on Board Directors and Economic Value Added: Evidence from Latin American Companies

This study aims to evaluate the relationship between the presence of women on boards of directors and the generation of economic value added (EVA®). For the empirical analysis, a panel data model with random effects is used, encompassing 202 Latin American companies between 2019 and 2021. The results obtained show that having women on boards of directors has a non-significant positive effect on EVA®, which diminishes as women’s participation on the board increases. Theory suggests that more diverse boards of directors exercise better control, leading to improved financial results. However, the diversity of members has also been associated with longer decision-making processes that generate inefficiencies and increase costs. This contribution adds to the existing literature by exploring under-studied variables in the region and expanding knowledge on this topic in the Latin American context.

Determinants of BPMS use for knowledge management

PurposeCompanies are increasingly implementing business process management systems (BPMSs) to support their processes. However, there is a gap in the literature regarding whether users also use BPMSs to manage the knowledge needed for processes to be completed. This study aims to analyze the factors that cause users to use BPMSs to manage the knowledge required in business processes.Design/methodology/approachThe paper proposes an original model that integrates two successful information system models applied to BPMSs and knowledge management systems. To test the hypotheses derived from this new model, data were collected from 242 mature BPMS users from 12 Spanish and Latin American companies. Structural equation modeling with AMOS was used to examine the model.FindingsUsers’ perceived usefulness of a BPMS when using it for knowledge management (KM) is the only factor influencing them to use it for KM.Practical implicationsThis study has practical implications for managers wishing to successfully implement a BPMS to support processes and for employees to use the knowledge embedded in the tool. The latter will only happen if users perceive the tool’s usefulness for KM.Originality/valueTo the best of the authors’ knowledge, this model is the first empirically validated model to successfully analyze BPMS users’ tendency to use BPMSs as a tool to support necessary KM in processes.

The Effects of Sovereign Rating and Corporate Governance on The Capital Structure of Latin American Companies

This study analyzed the effects of sovereign rating and corporate governance (CG) on the capital structure of Latin American companies. A multilevel regression model was used for 823 companies listed on major Latin American stock exchanges over the period 2004-2018. The results showed that firm level is the most responsible factor for the variation in companies’ capital structure, while country level had the greatest influence on the variation in long-term debt. In the absence of CG mechanisms, sovereign rating is one of the factors not controlled by managers that can explain the capital structure of Latin American companies, which reduce their debt levels to protect themselves in the face of their countries’ sovereign rating variations. The results indicated that, despite having an audit committee and keeping independent members on the committee, firms choose to reduce their debt levels to protect themselves against the constant variations of their countries’ sovereign rating. The results also showed that CG mechanisms do not act in isolation when it comes to reducing agency problems. This research is one of the first studies to provide evidence on the implications of sovereign ratings and CG on the capital structure of firms in Latin America.

Measures of bad faith in Latin America: Governments and multinational extractive companies 1982-2020

This paper analyzed a possible 'Ethics of freedom' in the relations between extractive companies and Latin American states. The research supports an original theory on the origin of global injustices that focuses on developing countries as ethically responsible ontological units. The empirical case studies of the relations between Multinational Companies and the Latin American States are taken from a qualitative methodology that analyzes fifteen instances of injustice judged by the Inter-American Court of Human Rights between 1980 and 2020. Does the article ask: How have ethic concepts such as bad faith, L'angoisse de la liberté, selfawareness, Being-in-itself, and Being-for-itself been applied in relations between Latin American companies and governments? The authors take, hypothetically, States, companies, and international organizations as ontological units of a "global society." While other research tends to focus on the responsibilities of extractive companies, this article concludes that distortions in the Ethics of States, such as the bad faith of governments in developing countries, largely explain situations of injustice. Accordingly, the article concludes that it is possible to argue new criminalities of bad faith given that Latin American Governments are morally responsible for crimes prior to and during the establishment of extractive companies between 1982 and 2020.

Does board diversity encourage an environmental policy focused on resource use, emission reduction and innovation? The case of companies in Latin America

AbstractThis study aims to identify the effect of board diversity on environmental policy in Latin American companies. This research focuses on 11 industrial sectors in Brazil, Mexico, and Chile that took into consideration a broader extension of environmental policy, involving practices regarding resource use, emissions reduction, and innovation. Drawing on corporate governance (CG) and corporate social responsibility (CSR) relationships, a regression analysis was conducted with 1214 firm‐year observations from 181 companies. Our results indicate that the predominantly weak CG in Latin America might favour the use of manipulative environmental policy decisions. Board diversity does not have a relevant influence on CSR activities, as environmental issues are only taken into account so far as the cost of natural resources, while issues such as environmental innovation and reducing emission are not part of the agenda. In Brazil and Chile, independent directors have no significant effect on environmental policy decisions, while in Mexico, a less independent board grants managers greater discretion to establish an environmental policy, whereas in all three countries, board gender diversity has no significant effect. The theoretical insights drawn from this study reinforce that board composition, as an internal CG mechanism, is insufficient to overcome the institutional voids and give protagonist to sustainability issues in Latin America, reiterating the need for more robust CG mechanisms to coerce CSR.

Inappropriate Corporate Strategies: Latin American Companies That Increase Their Value by Short-Term Liabilities

This study seeks to understand the financing strategy used by companies listed on the Mexican Stock Exchange (BVM), the São Paulo Stock Exchange (VVSP), and the Santiago Stock Exchange (BCS). To this end, the data observed in the Economática database for a sample of 29 companies were considered. Then, through a long panel data model, the study concludes that in the organizations reviewed, there is a degree of association between the variables “short-term liabilities” and “share price”, as the former increases by 1%, and the value of the shares increases by 0.09% in the subsequent period. This confirms a procyclical financial leverage.

Does gender diversity moderate the relationship between CSR committees and Sustainable Development Goals disclosure? Evidence from Latin American companies

Purpose This study aims to investigate the association between the presence of a corporate social responsibility (CSR) committee and Sustainable Development Goals (SDGs) disclosure, as well as the moderating role of gender diversity in this relation. Design/methodology/approach The sample consists of 897 annual observations from 238 firms from Argentina, Brazil, Chile, Colombia, Mexico and Peru for 2018–2020. The data were collected from the Refinitiv database. The proposed model and hypotheses were tested using the feasible generalized least squares estimation technique with heteroscedasticity and panel-specific AR1 autocorrelation. Findings The results reveal that the presence of CSR committees positively influences the SDGs. Gender diversity positively moderates the relationship between CSR committees and SDGs. Leverage and firm size also positively impact the SDGs. On the other hand, board size and CEO duality negatively affect SDGs disclosure. Research limitations/implications This study extends the scope of stakeholder theory by suggesting that CSR committees and gender diversity enable a better relationship for the firm with its stakeholders. Practical implications The findings support policymakers and managers in improving sustainability disclosure. In addition, the results demonstrate the importance of CSR committees and gender diversity to meet the stakeholders' demands. Social implications This study demonstrates how firms can improve sustainability issues through gender diversity and CSR committees. Originality/value To the best of the authors’ knowledge, this study complements previous literature by being the first to examine the moderating effect of gender diversity on the association between CSR committees and SDGs disclosure in the Latin American context.