Submitted by Malte Nowack (malte.nowack@gmail.com) on 2014-10-09T21:14:35Z No. of bitstreams: 1 Malte Nowack FGV_VF.docx: 327906 bytes, checksum: 9050c7cb1fba28803c864ea2ab332798 (MD5) / Approved for entry into archive by JOANA MARTORINI (joana.martorini@fgv.br) on 2014-10-10T12:05:14Z (GMT) No. of bitstreams: 1 Malte Nowack FGV_VF.docx: 327906 bytes, checksum: 9050c7cb1fba28803c864ea2ab332798 (MD5) / Made available in DSpace on 2014-10-10T12:25:54Z (GMT). No. of bitstreams: 1 Malte Nowack FGV_VF.docx: 327906 bytes, checksum: 9050c7cb1fba28803c864ea2ab332798 (MD5) Previous issue date: 2014-08-12 / We examine the drivers behind the establishment mode choice of German multinational enterprises (MNEs) in the sectors of Automotive, Chemicals and Mechanical Engineering in Brazil for the years 1993-2013 using a novel sample of primary data obtained directly from German MNEs. Based on prevalent theories found in the literature, we test the most common hypotheses on our sample. Firms with high R&D activities and firms with prior market knowledge in Brazil in from of previous sales offices are more likely to enter Brazil by a Greenfield investment. We also show that it is the specific private ownership of the German so-called hidden champions that drive those specific SMEs to enter Brazil by Greenfield, a sneaking suspicion that has been made before. Finally, we show that the establishment mode choice between Brazil and the USA only deviates to a low extent, with German MNEs preferring to enter Brazil by Greenfield and the USA by M&A. Thereby, we provide valuable insights for future research in this field.