Gran Tierra Energy Inc. (Gran Tierra) is an international Calgary based oil and gas firm, involved in the upstream side of the oil and gas value chain (exploration and production). Gran Tierra has operations in four South American countries: Argentinian, Brazil, Columbia and Peru. This is due to the fact that Gran Tierra started as an independent oil and gas firm looking to capitalize on undervalued assets at a time when South American countries where becoming increasingly attractive for foreign direct investment (FDI), as political, legal and fiscal changes attracted early entrants to the region. Gran Tierra’s motive for internationalization is was specific resource seeking; the company sought out undervalued and overlooked opportunities for oil exploration and extraction.
Gran Tiera is unique in that it operates exclusively in host countries, with only corporate offices in its home country of Canada. Gran Tierra’s international strategy is to focus on select countries in South America where it can quickly identify and capitalize on undervalued assets. Gran Tiera is able to achieve this strategy through a combination of a highly qualified executive team and the effective utilization of location advantages. The firm’s firm specific advantage (FSA) development largely follows pattern III in Appendix A, in which the firm has transferable FSA’s developed in the home country and location-bound knowledge or expertise added to it in order to exploit the FSA in the