North American and European plastic equipment processing companies’ relationships with Andean markets

Abstract

Purpose: The purpose of this investigation is to establish why North American firms, specifically plastic proces- sing machinery firms, do not have aggressive strategies to improve their performance in Andean countries while the European competition has a more productive attitude towards developing local operations. Methodology: The document presents the main theories that might explain why North American firms seem to be less interested in Andean Markets. Interviews with North American and European senior executives with deci- sion-making and managerial responsibilities in Andean markets make the main contributions to this paper. Findings: They illustrate findings and behaviour patterns that support the authors’ hypotheses. Originality: The conclusions of the study can be used to suggest possible similar studies in different industry sec- tors and to verify whether this is an industrial or cultural phenomenon.

Keywords

• Firm internationalization
• global mindset
• plastic machinery
• Uppsala model
• cultural distance
• uncertainty and risk