A Novel Framework for International Value Creation : An Investigation of Latin American Affiliates

There is a long history of European and U.S. affiliates in Latin America. This articleattempts to ascertain the different roles these affiliates play. A new framework is developedthat categorizes different choices a company can make in its value creationsystem and therefore what roles foreign operations can have within a company widenetwork. A methodology is devised that allows measuring these different roles. Resultsare discussed with specific focus on wholesale trade, transportation equipment,and electronics in Mexico and Brazil...