This study analyses the changes that are taking place in the Brazilian industry, recently involved in the process of productive globalization. It shows that drastic changes in terms of strategies, organization and management are in course, both in terms of transnational and Brazilian enterprises. The main conclusion is that knowledge intensive functions such as R&D, Strategic Management and Management Systems are being transferred abroad by the TNCs and the Logistics function is becoming the most "strategic" function in the operation of their subsidiaries. The Brazilian enterprises which succeed in operating in globalized productive chains are adopting similar structures. In the long run, those changes will be detrimental for the formation of local capabilities and consequently, for the maintenance of the competitive position of Brazilian industry.
industrial organization; management of competences; transnational corporations
