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MNCs and micro-entrepreneurship in emerging economies: The case of Avon in the Amazon

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  • Chelekis, Jessica
  • Mudambi, Susan M.

Abstract

This article examines the activities of multinational corporations (MNCs) in the direct sales industry through an ethnographic case study of micro-entrepreneurship in the Brazilian Amazon. In large emerging economies, intra-country heterogeneity poses challenges for MNCs. Because national trends often obscure regional variations, the case study highlights the realities of the rural Amazon, and the specific challenges and potential for MNCs. Findings from the case study support three propositions. The development of direct sales networks in remote areas facilitates: (1) additional entrepreneurship, and encourages a progression from necessity to opportunity entrepreneurship; (2) social change in gender norms, including higher level of female empowerment and decision-making within families and communities; and (3) a reconciliation of local and global values on beauty and fashion for customers, leading to stronger brand relationships. By leveraging micro-entrepreneurship, MNCs can compete with local firms, even in rural areas lacking basic infrastructure, to the benefit of communities and individuals.

Suggested Citation

  • Chelekis, Jessica & Mudambi, Susan M., 2010. "MNCs and micro-entrepreneurship in emerging economies: The case of Avon in the Amazon," Journal of International Management, Elsevier, vol. 16(4), pages 412-424, December.
    • Handle: RePEc:eee:intman:v:16:y:2010:i:4:p:412-424
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    Cited by:

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    2. Ayse Saka-Helmhout & Maryse M. H. Chappin & Suzana B. Rodrigues, 2022. "Corporate Social Innovation in Developing Countries," Journal of Business Ethics, Springer, vol. 181(3), pages 589-605, December.
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    4. Ivan Montiel & Alvaro Cuervo-Cazurra & Junghoon Park & Raquel Antolín-López & Bryan W. Husted, 2021. "Implementing the United Nations’ Sustainable Development Goals in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 999-1030, July.
    5. Hill, T.L. & Mudambi, Ram, 2010. "Far from Silicon Valley: How emerging economies are re-shaping our understanding of global entrepreneurship," Journal of International Management, Elsevier, vol. 16(4), pages 321-327, December.
    6. Aline Gatignon & Laurence Capron, 2023. "The firm as an architect of polycentric governance: Building open institutional infrastructure in emerging markets," Strategic Management Journal, Wiley Blackwell, vol. 44(1), pages 48-85, January.
    7. Rahul Nilakantan & Deepak Iyengar & Samar K. Datta & Shashank Rao, 2021. "On Ethical Violations in Microfinance Backed Small Businesses: Family and Household Welfare," Journal of Business Ethics, Springer, vol. 172(4), pages 785-802, September.
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    9. Koveshnikov, Alexei & Tienari, Janne & Piekkari, Rebecca, 2019. "Gender in international business journals: A review and conceptualization of MNCs as gendered social spaces," Journal of World Business, Elsevier, vol. 54(1), pages 37-53.

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