Open Conference Systems, 16th SGBED & XII ESPM International Conference in Management

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Walter Caballero, Frederico Araujo Turolla, Mario Henrique Ogasavara, Nidi Andrea da Cruz

Last modified: 2019-03-27


This paper examines the institutional theory aspects for entry mode of infrastructure’s foreign direct investment (FDI) in the recent Brazil’s airport privatization process in light of the local institutional (contractual) environment to attract resources and knowledge to overcome country’s infrastructure asymmetries. The paper draws on institutions theory. We consider the institutional environment in Brazil for foreigner investors pursuant to key regulations on concessions and on bidding and procurement of public-private partnerships (PPP). In addition, the influence of the major local contractors on the bidding process in infrastructure.  project auctions. This paper will be based upon qualitative research with a case study focusing on the entry of three international airport infrastructure airports that were winning bidders in the recent privatization process in Brazil. Analysis of documents was carried out. Results show that without any prior knowledge of local institution environment these firms have committed high volumes of capital into Brazil counting on the protection of the country’s institution environment of concessions and that a wide anticorruption operation in Brazil has promoted a major change in the entry mode of foreign firms in this market.


Entry Mode - Institutions - FDI - Infrastructure - Airport


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