Article
Global Business Review
18(4) 1–17
© 2017 IMI
SAGE Publications
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DOI: 10.1177/0972150917692402
http://gbr.sagepub.com
Exploring Emerging Latin America:
Implications for German Companies
Using Spain as a Springboard Country
Rohit Subhash Prabhudesai
1
Ch V V S N V Prasad
1
Boon Chuan Ang
2
Abstract
This article seeks to determine the means by which European companies can make use of Latin
European countries as a springboard to emerging markets in Latin America. For the sake of this study,
Germany and Spain were used as the European and springboard countries, respectively. Cultural issues
experienced by German companies in Asia have made it imperative for them to explore alternative
emerging economies, such as Latin American countries. However, Latin America represents an equally
risky opportunity through direct market entry owing to the cultural gap across the two regions. Given
the interactions between members of the European Union and the cultural similarities between Spain
and Latin America, the hypothesis of former being a cultural bridge was tested. The qualitative and
quantitative cultural parameters across Germany, Spain and Latin America were compared and results
showed that Spanish cultural experience can bridge the German–Latin American cultural gap.
Keywords
Spanish springboard, German–Latin American business, cultural gap, German business culture, Spanish
business culture, European business culture, Latin American business culture
Introduction
Economic globalization has become a necessity as capitalism-driven economies are embracing foreign
direct investment. Companies have transcended national borders, motivated by growing markets, low
operating costs and the tendency to follow customers. However, these internationalizing companies need
1
Department of Economics, Birla Institute of Technology & Science, Pilani (Goa Campus), Bypass Road, Zuarinagar, Sancoale,
Goa, India.
2
Permasteelisa Spa, Department of Human Resources, 61 Richards Avenue, Singapore.
Corresponding author:
Rohit Subhash Prabhudesai, Department of Economics, Birla Institute of Technology & Science, Pilani (Goa Campus), NH 17B Bypass
Road, Zuarinagar, Sancoale, Goa 403 726, India.
E-mail: p2013413@goa.bits-pilani.ac.in