Case Study of IMPSA

This chapter examines the case of IMPSA, a latecomer firm in Argentina, and its journey to catch up with global competitors in the renewable energy industry. The chapter discusses IMPSA’s evolutionary path, which involved building corporate coherence, technological modernization, internationalization, diversification attempts, and specialization in renewable energies. IMPSA’s success can be attributed to its ability to adapt to changing market conditions, invest in advanced technologies, and expand its production capacity. The chapter also explores IMPSA’s corporate strategy, technological capabilities, and organizational structure, which have enabled the company to thrive in the capital goods industry and become a leader in hydro- and wind-power generation. Additionally, the chapter highlights the challenges faced by IMPSA due to adverse macroeconomic conditions in Argentina, including frequent policy changes, currency devaluations, and financial difficulties. Despite these challenges, IMPSA adopted a long-term strategic vision and utilized financial leverage to overcome the disadvantages and continue its operations and growth. The chapter concludes by emphasizing the importance of long-term corporate strategy, flexible organizational structure, and coherent core capabilities in enabling a latecomer firm to survive, grow, and catch up. The findings contribute to the understanding of latecomer firms in developing countries and provide insights for policymakers and managers in similar contexts.