AMTP Proceedings 2026

Document Type

Conference Proceeding

Publication Date

Spring 2026

Abstract

This study examines innovation-based foreign direct investment of multilatinas. More specifically, how multilatinas utilize subsidiaries located to drive innovation performance. Partial least squares structural equation modeling is used to analyze a sample of 92 multilatinas from Brazil and Mexico. This study advances the multilatinas literature by examining how Brazilian and Mexican firms that experience varying levels of government intervention in their home countries related to internationalization and innovation pursue innovation-driven internationalization into developed markets. Our study contributes to the discussion that multilatinas are a heterogenous group despite the common history of the Latin American region.

Our results indicate that delegating autonomy towards subsidiaries located in developed markets is a key strategic mechanism to initiate internal embeddedness and knowledge transfer activities in Brazilian multilatinas. Moreover, Brazilian multilatinas foster headquarters – subsidiary internal embeddedness to support knowledge transfer and innovation performance. However, reverse knowledge transfer drives innovation performance of Mexican multilatinas.

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