Brazilian Secrets Hair Case

Felicia, Lucyana; Kogut, Clarice Secches; Mello, Renato Dourado Cotta de

doi:10.1590/1982-7849rac2020180076

Lucyana Felicia

Universidade Federal do Rio de Janeiro, Instituto de Pós-Graduação e Pesquisa em Administração (COPPEAD), Rio de Janeiro, RJ, Brazil.

Lucyana Felicia, Rua Pascoal Lemme, nº 355, Ilha do Fundão, 21941-901, Rio de Janeiro, RJ, Brazil. E-mail address: lucyanafelicia@gmail.com, https://orcid.org/0000-0003-1217-4879

https://orcid.org/0000-0003-1217-4879

Clarice Secches Kogut

Universidade Federal do Rio de Janeiro, Instituto de Pós-Graduação e Pesquisa em Administração (COPPEAD), Rio de Janeiro, RJ, Brazil.

Clarice Secches Kogut*, Rua Pascoal Lemme, nº 355, Ilha do Fundão, 21941-901, Rio de Janeiro, RJ, Brazil. E-mail address: clarice.kogut@coppead.ufrj.br, https://orcid.org/0000-0002-4760-654X

https://orcid.org/0000-0002-4760-654X

Renato Dourado Cotta de Mello

Universidade Federal do Rio de Janeiro, Instituto de Pós-Graduação e Pesquisa em Administração (COPPEAD), Rio de Janeiro, RJ, Brazil.

Renato Dourado Cotta de Mello, Rua Pascoal Lemme, nº 355, Ilha do Fundão, 21941-901, Rio de Janeiro, RJ, Brazil. E-mail address: renato@coppead.ufrj.br, https://orcid.org/0000-0003-2345-1202

https://orcid.org/0000-0003-2345-1202

*Corresponding Author

Editor-in-chief: Wesley Mendes-Da-Silva (Fundação Getulio Vargas, EAESP, Brazil) https://orcid.org/0000-0002-5500-4872

Associate Editor: Paula C. P. de S. Chimenti (Universidade Federal do Rio de Janeiro, COPPEAD, Brazil) https://orcid.org/0000-0002-6492-4072

Reviewers: Ilan Avrichir (Escola Superior de Propaganda e Marketing, Brazil) https://orcid.org/0000-0001-8234-3872

Anete Alberton (Universidade do Vale do Itajaí, PPGA, Brazil) http:/orcid.org/0000-0002-6477-0122

Daniela Abrantes Ferreira (Universidade Federal do Rio de Janeiro, Brazil) https://orcid.org/0000-0002-6773-1954

Lucyana Felicia, Rua Pascoal Lemme, nº 355, Ilha do Fundão, 21941-901, Rio de Janeiro, RJ, Brazil. E-mail address: lucyanafelicia@gmail.com, https://orcid.org/0000-0003-1217-4879

Clarice Secches Kogut^**Corresponding Author, Rua Pascoal Lemme, nº 355, Ilha do Fundão, 21941-901, Rio de Janeiro, RJ, Brazil. E-mail address: clarice.kogut@coppead.ufrj.br, https://orcid.org/0000-0002-4760-654X

Renato Dourado Cotta de Mello, Rua Pascoal Lemme, nº 355, Ilha do Fundão, 21941-901, Rio de Janeiro, RJ, Brazil. E-mail address: renato@coppead.ufrj.br, https://orcid.org/0000-0003-2345-1202

Conflict of Interest

The authors have stated that there is no conflict of interest.

Authors' Contributions

1^st author: Largest contribution related to the original data collection. She also contributed to the conception of the work, analysis and interpretation of data, writing and critical review, final approval and overall responsibility.

2^nd author: Greater contribution regarding the design of the work, development and transformation of data suitable for the case for teaching. She also contributed to the acquisition and analysis of data, writing and critical review, final approval and overall responsibility.

3^rd author: Greater contribution regarding the text elaboration, critical review and final approval. He also contributed to the work design, acquisition, analysis and interpretation of data and overall responsibility.

Internationalization theories	Key variables	Authors
Gradual internationalization (Uppsala model)	- Entry modes into international markets - First foreign market - Sequence of international expansion - Significance of individuals - Pace of international expansion	Johanson and Vahlne (1977Johanson, J., & Vahlne, J.-E. (1977). The internationalization process of the firm - a model of knowledge development and increasing foreign market commitments. Journal of International Business Studies 8(1), 23-32. https://doi.org/10.1057/palgrave.jibs.8490676 https://doi.org/10.1057/palgrave.jibs.84... ; 1990Johanson, J., & Vahlne, J. (1990). The mechanism of internationalization. International Marketing Review, 7(4). https://doi.org/10.1108/02651339010137414 https://doi.org/10.1108/0265133901013741... ; 2009)Johanson, J., & Vahlne, J.-E. (2009). The uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies. 40(9), 1411-1431. https://doi.org/10.1057/jibs.2009.24 https://doi.org/10.1057/jibs.2009.24... Vahlne and Johanson (2013)Vahlne, J.-E., & Johanson, J. (2013). The uppsala model on evolution of the multinational business enterprise - from internalization to coordination of networks. International Marketing Review. 30(3), 189-210. https://doi.org/10.1108/02651331311321963 https://doi.org/10.1108/0265133131132196... Vahlne and Johanson (2017)Vahlne, J. & Johanson, J. (2017). From internationalization to evolution: The uppsala model at 40 years. Journal of International Business Studies. 48(9), 1087-1102. https://doi.org/10.1057/s41267-017-0107-7 https://doi.org/10.1057/s41267-017-0107-...
Networks	- Previous (social and/or business) relationships - Existing (formal and/or informal) partnerships abroad - Role of networks in a firm's international expansion - Firm's position within networks	Johanson and Mattson (1988)Johanson, J., & Mattson, L.-G. (1988). Internationalization in industrial systems - a network approach. In N Hood & J Vahlne (Eds.), Strategies in global competition, (pp. 303-321). New York: Croom Helm. Johanson and Vahlne (2009)Vahlne, J.-E., & Johanson, J. (2013). The uppsala model on evolution of the multinational business enterprise - from internalization to coordination of networks. International Marketing Review. 30(3), 189-210. https://doi.org/10.1108/02651331311321963 https://doi.org/10.1108/0265133131132196... Chetty and Agndal (2007)Chetty, S. K., & Agndal, H. (2007). Social capital and its influence on changes in internationalization mode among small and medium-sized enterprises. Journal of International Marketing. 15(1), 1-29. https://doi.org/10.1509/jimk.15.1.001 https://doi.org/10.1509/jimk.15.1.001... Chetty and Stangl (2010)Chetty, S. K., & Stangl, L. M. (2010) Internationalization and innovation in a network relationship context. European Journal of Marketing. 44(11/12), 1725-1743. https://doi.org/10.1108/03090561011079855 https://doi.org/10.1108/0309056101107985... Schweizer (2013)Schweizer, R. (2013). SMEs and networks: Overcoming the liability of outsidership. Journal of International Entrepreneurship. 11(1), 80-103. https://dx.doi.org/10.1007/s10843-012-0097-2 https://dx.doi.org/10.1007/s10843-012-00... Oparaocha (2015)Oparaocha, G. O. (2015). SMEs and international entrepreneurship: An institutional network perspective. International Business Review. 24(5), 861-873. https://doi.org/10.1016/j.ibusrev.2015.03.007 https://doi.org/10.1016/j.ibusrev.2015.0...
International entrepreneurship	- Venture creation process - Search for international market - Selection of foreign market - Period between venture creation and completion of first business deal abroad - Governance structure adopted - Focus on domestic/international market	Oviatt and McDougall (2005)Oviatt, B. M., & McDougall, P. P. (2005). Toward a theory of international new ventures. Journal of International Business Studies. 36(1), 29-41. https://doi.org/10.1057/palgrave.jibs.8400128 https://doi.org/10.1057/palgrave.jibs.84... Coviello, McDougall, and Oviatt (2011)Coviello, N. E., McDougall, P. P., & Oviatt, B. M. (2011). The emergence, advance and future of international entrepreneurship research - an introduction to the special forum. Journal of Business Venturing. 26(6), 625-631. https://doi.org/10.1016/j.jbusvent.2011.07.002 https://doi.org/10.1016/j.jbusvent.2011.... Jones, Coviello, and Tang (2011)Jones, M. V., Coviello, N., & Tang, Y. K. (2011). International entrepreneurship research (1989-2009): A domain ontology and thematic analysis. Journal of Business Venturing. 26(6), 632-659. https://doi.org/10.1016/j.jbusvent.2011.04.001 https://doi.org/10.1016/j.jbusvent.2011.... Gabrielson and Kirpalani (2004)Gabrielson, M., & Kirpalani, V. H. M. (2004). Born globals: How to reach new business space rapidly. International Business Review. 13(5), 555-571. https://doi.org/10.1016/j.ibusrev.2004.03.005 https://doi.org/10.1016/j.ibusrev.2004.0... Rennie (1993)Rennie, M. W. (1993, Autumn). Born global. The McKinsey Quarterly, (4), 45-52. Retrieved from https://go.gale.com/ps/anonymous?id=GALE%7CA15424561&sid=googleScholar&v=2.1&it=r&linkaccess=abs&issn=00475394&p=AONE&sw=w https://go.gale.com/ps/anonymous?id=GALE... Autio (2005)Autio, E. (2005). Creative tension: The significance of Ben Oviatt’s and Patricia McDougall’s article ‘toward a theory of international new ventures’. Journal of International Business Studies. 36(1), 9-19. https://dx.doi.org/10.1057/palgrave.jibs.8400117 https://dx.doi.org/10.1057/palgrave.jibs...
Effectuation	- Entrepreneurial profile - Decision-making logic - Entrepreneur's vision of the future - Positioning regarding risk vs. opportunity - Company's adaptability to each market	Andersson (2011)Andersson, S. (2011). International entrepreneurship, born globals and the theory of effectuation. Journal of Small Business and Enterprise Development. 18(3), 627-643. https://dx.doi.org/10.1108/14626001111155745 https://dx.doi.org/10.1108/1462600111115... Galkina and Chetty (2012)Galkina, T., & Chetty, S. (2012, September) Effectuation and the revisited uppsala model: Networking of internationalizing SMEs. Proceedings of the McGill International Entrepreneurship Conference, Pavia, Italy, 15. Sarasvathy (2001)Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. The Academy of Management Review. 26(2), 243-263. https://doi.org/10.2307/259121 https://doi.org/10.2307/259121... Sarasvathy, Kumar, York, and Bhagavatula (2014)Sarasvathy, S., Kumar, K., York, J. G., & Bhagavatula, S. (2014). An effectual approach to international entrepreneurship: Overlaps, challenges, and provocative possibilities. Entrepreneurship Theory and Practice. 38(1), 71-93. https://doi.org/10.1111/etap.12088 https://doi.org/10.1111/etap.12088...

Dates	Events
2004	Entrepreneur's first business attempt-Inovagine
2010	Creation of Brazilian Secrets Hair (BSH)
2010	Exports to France begin
2011	Exports to other francophone countries begin
2012	Exports to Middle East begin
2014	Exports to Latin America and Northern and Western Europe begin
2016	BSH is present in 20 countries abroad, still not actively present in Brazil

Type of entry	Advantages	Disadvantages
Exports	Speed of entry, lowest risk, lowest investments (if available capacity)	Lowest control, low local knowledge, liability of outsidership, higher transportation costs, trade barriers
Licensing and franchising	High speed of entry, with low cost, and low risk	Less control of the business (compared to FDI), licensee may become a competitor, legal and regulatory environment (IP and contract law)
Strategic alliances or JVs	Shared costs and investments, shared risks, seen as local	Higher cost than previous options, possible integration or cultural problems, possible legal problems in 50/50 partnerships
Direct investments	Maximum control of operations	Highest cost of investments, higher risks

Pros	Cons
Marketing (name)	Complexity of business will increase
Partnership with Nazih Group	Andréa's previous bad experiences in the domestic market
Market size	Difficulties of domestic markets - distribution, bureaucracy, to name a few
Reputation of global brand	Strong competitors well stablished
Quality of products	The advantage of "made in" effect can disappear: one more in the crowd
Andréa's personal characteristics

[1] *Corresponding Author

Brasil

Brasil

Brazilian Secrets Hair Case

O Caso da Empresa Brazilian Secrets Hair

ABSTRACT