DIFFERENCES BETWEEN FIRST MOVERS AND LATE MOVERS FOR PRODUCT DEVELOPMENT CAPABILITY-BUILDING IN THE BRAZILIAN AUTOMOTIVE INDUSTRY DOI: 10.5585/RAI.2010552

Abstract

This study aspires to explain the influence of the order of entry of multinational companies in Brazil’s automotive industry concerning the capability-building process of the subsidiary for product development. The analytical framework involves discussing the benefits and advantages of the pioneer/follower, of economy, and its application to the internationalization of enterprises, and the literature relating to capability-building in automobile product development. The multiple case studies were embarked by in-depth interviews with four automakers who undertook relevant engineering activities in Brazil: General Motors (GM), Volkswagen, Fiat and Renault. The method used was a multiple case study. The results suggest that late movers leap steps above in the capability-building process, using the successful experience of the pioneers. Theoretically, the results contribute to promote the discussion of: empowering subsidiaries for product development and innovation; to discuss the pioneers and followers in the international arena. In practical terms, the results are relevant by identifying a "fast track” for the qualified engineering, in an industry where most subsidiaries still exert such activity in a very limited manner.