Search Results (41)

The study of capital structure is one of the most relevant topics in finance because, despite the various theories that seek to explain it, there is still no consensus on the determining factors or the behaviors of financing decisions in companies. This study empirically analyzes the capital structure decisions of Latin American companies during the period of 2013–2023, in light of trade-off and pecking order theories. A panel data methodology was applied to 62 companies, using fixed and random effects models. The results show that, on average, companies correct around 5.80% of the gap between their current and optimal level of indebtedness per period, partially supporting the trade-off theory. However, the effects of the financial deficit on indebtedness are heterogeneous and, in most cases, inconsistent with the pecking order theory, especially in countries such as Colombia. It is concluded that country risk has a marginal influence on debt decisions, and the need to consider each country’s institutional and market particularities when analyzing the dynamics of capital structure in emerging economies is emphasized. Full article

This study examines the relationship between fear of failure, entrepreneurial passion, and entrepreneurial self-efficacy among university business students from four emerging Latin American economies: Mexico, Colombia, Peru, and Ecuador. This research addresses the need to understand the psychological factors that influence entrepreneurship, particularly in developing economies. Using non-probability convenience sampling, surveys were distributed between June 2021 and August 2022, and 961 valid responses were obtained. Scales from renowned researchers were used, which were translated and semantically validated in Spanish to measure the three variables. The data were analyzed using structural equation modeling with PLS. The overall results reveal that fear of failure negatively affects entrepreneurial passion, while entrepreneurial passion has a positive and significant relationship with entrepreneurial self-efficacy. Furthermore, entrepreneurial passion has a positive and significant relationship with fear of failure and entrepreneurial self-efficacy, with substantial differences between countries. Gender differences were also identified: in women, all relationships in the model were significant, while in men, the direct effect of fear of failure on entrepreneurial self-efficacy did not reach statistical significance. These findings contribute to the entrepreneurship literature by demonstrating that the relationship between these psychological variables varies by context (country) and gender, contradicting the notion of a universal effect. Full article

This study explores the use of Life Cycle Assessments (LCAs), Total Sustainability Assessment, and Life Cycle Sustainability Assessment (LCSA) as tools to evaluate the environmental, social, and economic impacts in Agri-industry. It highlights the unique trajectory of LCA and LCSA implementation in Latin America, shaped by the region’s distinct environmental, social, and economic contexts, contrasted with global research trends. Evidence shows the importance of biodiversity, conservation, and deforestation mitigation in Latin American LCA applications, which differ from the urban-focused impacts seen in regions like Europe or North America. Furthermore, it emphasizes the significant role of LCSA in addressing socio-economic challenges unique to Latin America, such as inequality and labor conditions. The research reveals the benefits of LCA and LCSA methodologies in the agro-industrial sector, particularly in addressing social issues like land use rights and rural community welfare. Despite challenges such as limited access to high-quality data and the need for capacity building, the innovative application of these methodologies in Latin America offers valuable insights for the global community. Our work relies on Latent Dirichlet Allocation (LDA) to analyze the LCSA literature from 1990 to 2024, identifying evolving trends and research focal areas in sustainability. The analysis herein presented highlights the need for a multi-dimensional and holistic approach to sustainability research and practice. Our findings also emphasize the importance of developing comprehensive models and integrated methodologies to effectively address complex sustainability challenges. Environmental information remains crucial for policy processes, acknowledging uncertainties in estimations and the connection between land use change, agriculture, and emissions from the global food economy and bioenergy sectors. The research underscores the dynamic nature of LCSA and the importance of continually reassessing sustainability efforts to address pressing challenges. Full article

This study identifies key drivers for ERP implementation in small- and medium-sized enterprises (SMEs) in Austro–Ecuador and examines their impact on operational efficiency, strategic adaptability, and digital transformation. Motivated by the limited empirical evidence on ERP adoption in Latin American SMEs, this research aims to provide Austro–Ecuadorian insights that contribute to innovation management practices in emerging economies. To identify the critical success factors (CSFs) influencing ERP implementation, a four-phase methodology was employed, encompassing a CSF literature review, data collection and case analysis from 55 SMEs, multiple correspondence analysis (MCA), and descriptive ERP analysis. Statistical analysis of the surveyed SMEs, primarily from manufacturing sectors, revealed that while a significant portion (37%) lacked ERP experience, 22.9% were in the process of implementing or actively using systems such as Oracle’s J.D. Edwards Enterprise One and SAP. The MCA highlighted ERP system configuration, vendor relationships, and user training as significant factors for successful ERP implementation, reported by 54.5% of the companies. Quadrant analysis further emphasized the influence of IT structure and legacy systems on implementation characteristics, with cluster analysis identifying three distinct groups of companies based on their ERP strategies. The findings underscore the importance of top management support, business process re-engineering, and external consultants for successful ERP adoption in SMEs, providing practical insights for optimizing innovation management in the digital era. Future research should investigate the long-term impacts of ERP systems on organizational performance and innovation sustainability. Full article

This study examines the dynamic interconnectedness of economic policy uncertainty (EPU) among Latin American economies—Brazil, Chile, Colombia, and Mexico—and significant international regions, including the United States, Europe, and Japan, as well as a global EPU index. Using a Time-Varying Parameter Vector Autoregressive (TVP-VAR) model with monthly data, this study reveals the evolving spillover effects and dependencies capturing how uncertainty in one market can transmit across others on both regional and global scales. The findings highlight the significant impact of external EPU, particularly from the U.S. and global EPU sources on Latin America, positioning it as a primary recipient of international uncertainty. These results underscore the need for Latin American economies to adopt resilience strategies—such as trade diversification and regional cooperation—to mitigate vulnerabilities to global shocks. This study offers valuable insights into the mechanisms of economic uncertainty transmission, guiding policymakers in developing coordinated responses to reduce the effects of external volatility and foster regional economic stability. Full article

This paper investigates the key drivers influencing the internationalization of agricultural small and medium-sized enterprises (agri-SMEs) in Latin America, with a particular emphasis on the role of social and ethnic networks. Focusing on Argentina, Brazil, and Chile—three of the region’s largest agricultural economies—this study examines how familial and cultural connections between descendants of European immigrants and European entrepreneurs facilitate the global expansion of agri-SMEs. Using a cross-sectional quantitative analysis, data from agri-SME managers reveal the importance of these networks in reducing market entry barriers by providing insider knowledge of foreign markets, regulatory conditions, and potential business partnerships. The findings demonstrate that ethnic networks significantly reduce market entry barriers, providing Latin American agri-SMEs access to essential insider knowledge on foreign markets and local regulations, thereby facilitating internationalization. Additionally, agri-SMEs that leverage these networks are better positioned to meet growing global demands for sustainable, traceable food products, gaining a competitive advantage in international markets. The strength and frequency of interactions within ethnic networks are positively correlated with the degree of internationalization, highlighting the importance of social capital in overcoming operational challenges. This paper contributes to the literature by highlighting the underexplored role of ethnic networks in shaping the international marketing strategies of agricultural firms and their capacity to adapt to evolving consumer behaviors. The study offers practical insights for supporting the global integration of agri-SMEs in Latin America, addressing both operational challenges and the increasing need for sustainable food production practices. Full article

This study examines the domestic solid waste management system in the LATAM region, using the city of Guayaquil in Ecuador as a case study. Through the life cycle assessment (LCA) methodology, the study compares domestic and external recycling processes, evaluating their effects on global warming potential, fossil resource scarcity, and terrestrial ecotoxicity. The results reveal that increasing recycling rates significantly reduces environmental impacts, with domestic recycling offering slightly higher environmental benefits than external options. A demographic analysis using machine learning techniques identifies distinct patterns of waste generation across different population clusters, highlighting the need for tailored waste management strategies. The study also emphasizes the importance of accurate local data and the integration of recycling initiatives with market realities, particularly in the light of policies mandating recycled content in products like PET bottles. A sensitivity analysis of the waste recovery indicator (WRI) demonstrates the potential for substantial environmental and economic benefits with higher recycling rates. The findings suggest that, to advance towards a circular economy, Latin American cities like Guayaquil must enhance their recycling infrastructure, refine waste management policies, and focus on demographic-specific strategies. This research contributes to the broader understanding of sustainable waste management in developing regions, offering insights for future policy and infrastructure development. Full article

The production of healthy animal-derived food entails the effective control of foodborne pathogens and strategies to mitigate microbial threats during rearing. Antibiotics have been traditionally employed in animal farming to manage bacterial infections. However, the prohibition of antibiotic growth promoters in livestock farming has brought significant changes in animal production practices. Although antibiotics are now restricted to treating and preventing bacterial infections, their overuse has caused serious public health issues, including antibiotic resistance and the presence of antibiotic residues in food and wastewater. Therefore, sustainable animal production is crucial in reducing the spread of antibiotic-resistant bacteria. Annually, 40–50% of fruit and vegetable production is discarded worldwide. These discards present significant potential for extracting value-added ingredients, which can reduce costs, decrease waste, and enhance the food economy. This review highlights the negative impacts of antibiotic use in livestock farming and stresses the importance of analyzing the challenges and safety concerns of extracting value-added ingredients from fruit and vegetable co-products at an industrial scale. It also explores the current trends in reducing antibiotic use in livestock, with a focus on Latin American contexts. Finally, the suitability of using value-added ingredients derived from fruit and vegetable co-products for animal feeds is also discussed. Full article

This study examines Brazil’s evolution from a primarily agricultural economy to a pivotal player within global supply chains, contesting the traditional view of emerging markets as mere suppliers of raw materials and labor. It closely examines Brazil’s assertive efforts and the obstacles it encounters, focusing on its role within the context of Latin America. Utilizing macroeconomic data, the research reveals the barriers to Brazil’s deeper integration into global supply chains and outlines novel strategies to enhance its global position. The findings highlight Brazil’s capacity to significantly influence and advance the global economic framework, emphasizing its vital role in redefining the narrative on global supply chain engagement from a Latin American perspective. Full article

The textile and apparel industry is a major contributor to Latin American economies. However, in these economies the industry is characterized by limited technological infrastructure, which has led to inefficient performance and the significant generation of water, material, and product waste through its supply chain (SC). Currently, Industry 4.0 has led to important benefits in manufacturing industries, but its application in the textile field has been limited to few case studies. The present work expands on this aspect with a critical review of Industry 4.0 concepts and principles, and our main contribution consists of an implementation guideline model. The model was based on Six Sigma and the Rothwell and Zegveld model for continuous improvement and innovation projects in manufacturing and business enterprises. In each step, key aspects such as the specific skills of the interdisciplinary team, assessment tools, and implementation/prototyping tools are highlighted. A discussion of a case study is presented to support the applicability of the model for Industry 4.0 pilot projects. Full article

This study examines the role of non-renewable natural resources in the accumulation of human capital in a sample of eighteen Latin American and Caribbean countries from 1995 to 2018. We assess the influence of non-renewable resources through six distinct variables and employ panel data co-integration techniques (PMG-ARDL). Our findings reveal a positive long-run effect, whether measured by abundance or dependence indicators. Even in cases where negative short-run effects are observed, the positive impact is consistent in the long term. Furthermore, physical capital stock, institution quality, and a more open economy are the most important drivers of human capital accumulation in the region. Although the long-run effect of non-renewable natural resources on human capital was positive, the estimated elasticities account for a relatively low effect. Consequently, even in the absence of the ‘curse’ effect, we do not deem it appropriate to consider these results as a blessing. Full article

The Latin American export in the manufacturing sector is 18% lower than the world average. Although between the 1980s and 1990s, the sophistication of exportable products increased by 13%, it is evident to see the low progress of the Latin American region to consolidate the change in its productivity and its dependence on oil extraction activities, minerals, and other raw materials. This article evaluates and quantifies the impact of human capital, globalization, and the role of the efficiency of institutions in the sophistication of production in Latin America compared to economies with greater complexity. This is conducted using panel data methodology with cointegration techniques, using data from 17 countries that belong to the continental part of Latin America and 10 countries with the greatest economic complexity according to the Atlas of Economic Complexity Index. These countries are classified by their income level, data compiled by the United Nations Development Program Indicators, the Harvard Growth Lab Atlas of Economic Complexity, the Swiss Economic Institute database, and the Heritage Foundation. The results indicate that there is a significant relationship between the explanatory variables and economic complexity. However, the nature of the relationships differs between the different income levels, finding the same trend in the cointegration analyses. It requires the adoption of public policies in the curricular and evaluative field of knowledge and skills as well as the fight against corruption in public and private sectors, motivating the improvement of bilateral relations with other countries in an economic, political, and social way. Full article

The Circular Economy (CE) is noted as an emerging framework to support sustainable production and consumption agendas. In addition, the CE aims to be a trigger for redefining economic growth pathways as sustainable, inclusive, and sensitive to ecological and environmental agendas, and to focus its operational standards on co-creating societal benefits. Concerning the guiding principles and the standards of practice applied to implement and scale circular economy, this study will provide an overview of water sector-specific circularity roadmaps and strategies in the Latin American Region (LAR). By using a semi-systematic review, document analysis, and qualitative assessment approach, we highlight framings and operational pathways, gaps, and needs within existing practices of circularity in the water sector. The results provide an overview of CE pathways at the national level of selected countries in the LAR, urging those nations to reflect various levels of advancement (low to high) with CE-focused innovations and policy support structures specific to the water and wastewater sectors. Towards the end, the study points to the ‘call for action’ to integrate outstanding advances and innovations in the circular economy within sectoral mandates for water and wastewater management, making an argument that circularity in the water sector could serve as an accelerator towards implementing the agenda outlined in Sustainable Development Goals (SDGs), and in particular for SDG 6 (water security for all). Full article

The global crisis caused by the COVID-19 pandemic has taught us the importance of reflecting on the essential resources and capabilities that enable companies to react to disruptions. In this regard, studies have shown that social sustainability is a crucial resource for the operational performance of supply chains in emerging contexts. Although the literature has responded to the call for research on the social dimension of sustainability in emerging economies, most research has focused on emerging Asia, leaving a void in Latin America. Two socially focused frameworks are used to address the ontological challenge of defining sustainable human well-being around the firm. Amartya Sen’s capabilities approach and the theoretical extension of the Social-Resource-Based View (SRBV) are appropriate to address social sustainability under two essential aspects: (1) the firm as a generator of social performance and (2) social sustainability as a generator of firm performance. This paper aims to analyze the predictive capacity of Social Sustainability Orientation on social performance and supply chain operational performance in the context of emerging Latin America, with representative cases from Mexico, Colombia, and Chile. The methodology was empirical–statistical and based on a structured questionnaire applied to 217 purchasing managers of large multisector companies (Mx n = 64, Co n = 100, and Cl n = 53). Hypotheses were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show the intrasample and extrasample predictive ability of Social Sustainability Orientation on social and Supply Chain Performance. It is concluded that socially sustainable culture and investment orientation is a valuable resource that provides the capability for Latin supply chain welfare and operational performance. A call is made to procurement and public policy managers to disseminate and care for the social aspects of sustainability as a resource that enhances business competitiveness and social justice in the Latin American region. Full article

Freight operations are relevant for economies but can negatively impact society due to the performance of activities related to fuel production, vehicle manufacturing, and infrastructure construction. This study applies the social organizational life cycle assessment (SO-LCA) methodology to analyze the social performance of companies involved in the supply chain of road transport companies located in different contexts such as Latin American, European, and Asian. The results of the three case studies are compared to analyze the methodology’s robustness and the influence of development and culture on how social performance is perceived. An approach for the SO-LCA, based on the UNEP/SETAC guidelines, was applied to freight companies in Colombia, Spain, and Malaysia. This integrated approach considers the key components of the transport system: fuels, vehicles, and infrastructure. A multi-tier inventory analysis was performed for 26 social impact subcategories, and reference scale assessments were applied to obtain single and aggregated social performance indexes. Interviews with stakeholders were used to aggregate indexes and identify priorities for decision-making in different contexts. First, the stakeholders concurred that freight companies must focus on labor rights to improve their social performance. The second social category in order of importance was human rights, except in the Spanish case study, where it was socioeconomic repercussions. These results indicate that social impact subcategories are influenced by socioeconomic development and the culture or beliefs of its inhabitants. These specificities help identify hotspots and stakeholder concerns toward which transport companies should direct their efforts. This study expands the range of indicators for social impact measurement and the known literature by investigating social matters for different categories of stakeholders spanning three continents. When these indicators are fully developed, their consideration in management practices could benefit business practitioners. Full article