Exogenous Factors in the Development of Flexible Fuel Cars as a Local Dominant Technology

  • Paulo Tromboni de Souza Nascimento FEA USP
  • Abraham Sin Oih Yu FEA USP
  • Robson Quinello FEA USP
  • Rosaria de Fatima S. Macri Russo FEA USP
  • Nigro Francisco POLI USP
  • Nilton Cesar Lima FEA USP
Keywords: automotive industry, biofuels, ethanol, local dominant design, power train technology.

Abstract

With flexible fuel technology, customers can choose among gasoline, ethanol, or any mix thereof at the fuel station pump. This paper presents the endogenous and exogenous factors that influnced the development of a flexible fuel electronic injection system by Magneti Marelli Automotive Systems Brazil – the first to the market. This software-based technological architecture, launched commercially in 2003, is now the dominant flexfuel design in the Brazilian market. This article documents the emergence of a local dominant technology (design) in a specific car sub-system. It is shown how exogenous institutional factors played the major role in this process. The paper describes how this local dominant technological design emerged through the sharing of capabilities and interaction among the key market players, in the absence of a strong appropriability regime. All the main market pioneers were multinational affiliates, inviting questions concerning this technology diffusion outside Brazil.

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Author Biographies

Paulo Tromboni de Souza Nascimento, FEA USP
Administration Department Business PhD and professor
Abraham Sin Oih Yu, FEA USP
Administration Department Business PhD and professor
Robson Quinello, FEA USP
Administration Department Business PhD and student
Rosaria de Fatima S. Macri Russo, FEA USP
Administration Department Business PhD and student
Nigro Francisco, POLI USP
Engineering Department Business PhD and professor
Nilton Cesar Lima, FEA USP
Administration Department Business MsC and student

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Published
2009-12-04
How to Cite
Nascimento, P. T. de S., Yu, A. S. O., Quinello, R., Russo, R. de F. S. M., Francisco, N., & Lima, N. C. (2009). Exogenous Factors in the Development of Flexible Fuel Cars as a Local Dominant Technology. Journal of Technology Management & Innovation, 4(4), 110-119. https://doi.org/10.4067/S0718-27242009000400009
Section
Research Articles