Management in a polarized Latin American region: special issue introduction

The purpose of this paper is to introduce the special issue which aims to provide a better understanding of the extent of regional polarization across different economic sectors and its impact on the business environment and strategies of firms in Latin America.

This paper introduces the topic of regional polarization, summarizes the findings from the articles in this special issue, and offers directions for future research.

The macro studies showed that polarization has impacted the agricultural and sector contributions to economic growth, FDI and remittance flows to the region, and created different competitive business environments in the Brazil and Mexico-led clusters. On the other hand, these studies show uniformity in the contribution of manufacturing to growth and superior women loan repayment performance across the region. The micro level studies showed convincingly that firms have to nurture different sets of competencies in the Mexican and Brazil-led clusters. These pioneer studies show the importance of the environmental context to firm's strategy.

The alignment between firm strategy and environment is a key factor of success. In a polarized Latin America, alignment with the changing global order is a necessary condition for success. Such an alignment requires a configuration of firm strategic resources to respond to the increasing opportunities.

The paper introduces the special issue which lays the foundation for further studies on how firms adapt to regional polarization.