Regionalization strategy and performance : The moderating role of industry dynamism and top management team diversity
Journal
Multinational Business Review
ISSN
1525-383X
Type
journal article
Date Issued
2013-03-03
Author(s)
Abstract
This paper contributes to the debate about the performance implications of adopting a regional as opposed to a global strategic posture. The aim of this paper is to argue that the performance effects of a regionalization strategy vary based on the characteristics of the industry in which the MNE operates and the composition of its top management team (TMT).
This analysis is based on a cross-sectional dataset of 211 large European MNEs headquartered in four Western European economies at the end of 2005.
Results show that firms adopting a regional orientation outperform MNEs with global strategic positioning. This positive relationship is less pronounced under conditions of industry dynamism and inter-regional TMT diversity.
The study contributes to our understanding of whether and under what conditions MNEs benefit from adopting a regional as opposed to a global strategic posture.
This analysis is based on a cross-sectional dataset of 211 large European MNEs headquartered in four Western European economies at the end of 2005.
Results show that firms adopting a regional orientation outperform MNEs with global strategic positioning. This positive relationship is less pronounced under conditions of industry dynamism and inter-regional TMT diversity.
The study contributes to our understanding of whether and under what conditions MNEs benefit from adopting a regional as opposed to a global strategic posture.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Emerald
Publisher place
Bingley UK
Volume
21
Number
1
Start page
6
End page
24
Pages
19
Subject(s)
Eprints ID
220583