Journal
MULTINATIONAL BUSINESS REVIEW
Volume 21, Issue 1, Pages 6-+Publisher
EMERALD GROUP PUBLISHING LTD
DOI: 10.1108/15253831311309465
Keywords
Regionalization strategy; Performance; Dynamism; Top management teams; Diversity; Performance management; Diversity management
Categories
Funding
- Swiss National Science Foundation (SNSF) [100018_140455]
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Purpose - 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). Design/methodology/approach - 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. Findings - 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. Originality/value - 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.
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