The changing pattern of operations management in developing countries : The case of Brazil

Economic activity is becoming increasingly globalised. Multinational enterprises, which are the main drivers of that process, are reconsidering the role of their subsidiaries. In countries where the industrialisation process was heavily dependent on multinationals, such as Brazil, these changes are intrinsically relevant, as they influence the operations of local companies as well as the definition of economic and industrial policies. This paper, based on longitudinal studies of 21 leading Brazilian companies (11 subsidiaries and 10 local), identifies the different roles performed by the subsidiaries in the global competitive strategies chosen by distinct TNCs as well as the strategic and organisational changes adopted by local companies aiming to participate in global productive chains and networks. The final picture reveals that the transition to a globalised competition logically requires the development of new concepts of production systems for developed and developing countries.