Conclusions: So ... Can Latin American Firms Compete?

Latin America presents unique challenges, such as roller-coaster bouts of economic development boom and bust; massive presence of state in the economy; failing markets for human and physical capital, and many other intermediate production goods; and underdeveloped and unstable institutional environments, especially in areas related to finance and law. Some firms have successfully learned how to navigate such a difficult environment. This book aims to help disseminate the lessons these firms bring to other firms and economic sectors. This chapter summarizes these in light of three leading theoretical perspectives: institutional theory, transaction cost economics, and the resource-based view of the firm. The chapter weaves common threads across the studies, and distills common strategic factors and decisions used by successful Latin American firms to compete.