Theoretical and Contextual Frameworks

This chapter explores the theoretical and contextual frameworks surrounding the concept of latecomer firms and their ability to catch up in terms of economic development. The theoretical framework examines various models and studies on catching-up processes at both the country and firm level. It emphasizes the significance of firm-level catch-up and highlights the role of capabilities, strategies, and institutional environments in driving this process. The chapter draws on a range of theoretical perspectives and empirical evidence to provide a comprehensive understanding of the factors that contribute to the success of latecomer firms. Shifting to the contextual framework, the chapter focuses on the Latin American context, with a specific emphasis on Argentina. It investigates the unique latecomer disadvantages faced by firms in this region, including distant global markets, technological backwardness, adverse macroeconomy, and corporate incoherence. The chapter discusses how these disadvantages have hindered the catch-up efforts of firms in Argentina and other Latin American countries. It also examines the impact of different policy regimes on industrialization and economic development in the region. Additionally, the chapter briefly explores the capital goods industry and its potential for latecomer firms to catch up through the provision of integrated solutions. It highlights the growing importance of service-intensive solutions and the challenges faced by manufacturing firms in delivering these solutions. The chapter emphasizes the need for organizational flexibility and customer-centric strategies in order to succeed in the evolving landscape of the capital goods industry. Overall, this chapter provides a comprehensive analysis of the theoretical and contextual factors that influence the ability of latecomer firms to catch up and thrive in the global market. It offers valuable insights into the dynamics of catch-up processes and the specific challenges faced by firms in the Latin American context. The chapter contributes to the existing literature on latecomer firms and provides a solid foundation for further research in this area. The findings of this chapter have implications for policymakers and practitioners seeking to support the growth and development of latecomer firms in Latin America and beyond.