The Internationalization Process as Generator Element of Dynamic Capacities: the case of WEG in Argentina and China

Abstract

The objective of he article is to research the dynamic capacitiesdeveloped and used by WEG in its internationalization process and toexplain how these capacities help the company defends and supportscompetitive advantage. The article presents an exploratory study of theinternationalization process of WEG in Argentina and China. This articlehas as analysis approach the dynamic capacities, contributes to theliterature of international management in two aspects. First, it addsthe analytical look of the internationalization based on dynamiccapacities that are still well restricted. Second, when working thedynamic capacities as central element of the analysis of theinternationalization process, it Proposes one framework of integrativeanalysis of the economic and behavioral theories that are used toexplain the process of companies'-internationalization, although theyare dealt independently and sometimes antagonistic way. The result showsas the dynamic capacities are articulated in the base of WEG in itsprocess of internationalization for Argentina and the subsequentmovement for China. The developed dynamic capacities in Argentina wereacquired for the Brazilian headquarter and could have been applied inthe process of internationalization for China. However, a more complexorganizational structure cannot be identified where the inter-subsidiaryrelationships could share dynamic capacities as proposed in framework.