Partner Selection in Brazil

Kathrine Lyster-Clausen

Student thesis: Master thesis


This project examines, what partner selection criteria should guide DDD-Diagnostic’s choice of distributor in Brazil. Considering the characteristics of the nuclear imaging industry, a global presence is inevitable for DDD-Diagnostic. With insufficient financial resources, the company cannot afford to establish global subsidiaries, and has thus decided to develop a global distribution network. Brazil is an emerging economy, which combined with the latest improvements in the country’s welfare, implies a great market opportunity for DDD-Diagnostic. However, through a multilevel analysis I identify several difficulties DDD-Diagnostic can meet in the Brazilian market, and I correspondingly identify partner selection criteria that can help mitigate these difficulties. The multilevel analysis covers the institutional level, where large institutional distances are identified; the industrial level that recognizes large entry barriers and a protectionistic market; the company level concerning resources, which finds both supplementary and complementary resource that can enhance the chances of success of the alliance; and the company level concerning transaction costs that underlines the risks of opportunism. My findings are collected and examined through a sensitivity analysis. Furthermore, the interrelatedness between the different levels of analysis is discussed. The resulting conclusions is a set off partner selection criteria, and these criteria will, based on this research, ensure a Brazilian partner that can accommodate DDDDiagnostic’s needs and wishes on the Brazilian market. Furthermore, a main conclusion of this project is that the choice of entry mode (nonequity partnership) is supported namely due to institutional distances. Key Words: Brazil, partnership, institutional distance, industrial organization, resources, transaction costs, trust and legitimacy.

EducationsMSc in International Marketing and Management, (Graduate Programme) Final Thesis
Publication date2013
Number of pages156