How Do We Capture "Global Specialization" When Measuring Firms' Degree of Internationalization?

    Publikation: Working paperForskning

    Resumé

    The IB literature informs us of several ways to measure firms' degree of internationalization. In this paper we make the argument that in fact none of the existing indices really measure firms' degree of "global specialization", that is, to what extent their allocation of resources is multidomestic or global. As argued, all the existing measures may gauge a purely multidomestic firm as having a high degree of internationalization, whereas a truly global firm may be ranked low. In order to remedy this we introduce a complementary index measuring how firms are configuring their value chains - whether they are replicating value chain activities from country to country or locating them in globally specialized units in order to exploit an international division of labor. In addition to mathematical modeling and numerical examples, we examine the relevance of the new index of global specialization on data of Danish MNCs by looking at the correlation between the new global specialization index and existing indices of firms' degree of internationalization. We find that the index is able to identify a distinct group of firms with significantly higher degrees of global value chain configuration. Key words: Internationalization, value chain, global configuration. JEL Codes: F02, F23, L22, L23
    OriginalsprogEngelsk
    Udgivelses stedFrederiksberg
    UdgiverDjøf Forlag
    Antal sider39
    ISBN (Trykt)8791815088
    StatusUdgivet - 2005

    Emneord

    • Virksomhedens internationalisering

    Citer dette

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    title = "How Do We Capture {"}Global Specialization{"} When Measuring Firms' Degree of Internationalization?",
    abstract = "The IB literature informs us of several ways to measure firms' degree of internationalization. In this paper we make the argument that in fact none of the existing indices really measure firms' degree of {"}global specialization{"}, that is, to what extent their allocation of resources is multidomestic or global. As argued, all the existing measures may gauge a purely multidomestic firm as having a high degree of internationalization, whereas a truly global firm may be ranked low. In order to remedy this we introduce a complementary index measuring how firms are configuring their value chains - whether they are replicating value chain activities from country to country or locating them in globally specialized units in order to exploit an international division of labor. In addition to mathematical modeling and numerical examples, we examine the relevance of the new index of global specialization on data of Danish MNCs by looking at the correlation between the new global specialization index and existing indices of firms' degree of internationalization. We find that the index is able to identify a distinct group of firms with significantly higher degrees of global value chain configuration. Key words: Internationalization, value chain, global configuration. JEL Codes: F02, F23, L22, L23",
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    T1 - How Do We Capture "Global Specialization" When Measuring Firms' Degree of Internationalization?

    AU - Geisler Asmussen, Christian

    AU - Pedersen, Torben

    AU - Petersen, Bent

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    N2 - The IB literature informs us of several ways to measure firms' degree of internationalization. In this paper we make the argument that in fact none of the existing indices really measure firms' degree of "global specialization", that is, to what extent their allocation of resources is multidomestic or global. As argued, all the existing measures may gauge a purely multidomestic firm as having a high degree of internationalization, whereas a truly global firm may be ranked low. In order to remedy this we introduce a complementary index measuring how firms are configuring their value chains - whether they are replicating value chain activities from country to country or locating them in globally specialized units in order to exploit an international division of labor. In addition to mathematical modeling and numerical examples, we examine the relevance of the new index of global specialization on data of Danish MNCs by looking at the correlation between the new global specialization index and existing indices of firms' degree of internationalization. We find that the index is able to identify a distinct group of firms with significantly higher degrees of global value chain configuration. Key words: Internationalization, value chain, global configuration. JEL Codes: F02, F23, L22, L23

    AB - The IB literature informs us of several ways to measure firms' degree of internationalization. In this paper we make the argument that in fact none of the existing indices really measure firms' degree of "global specialization", that is, to what extent their allocation of resources is multidomestic or global. As argued, all the existing measures may gauge a purely multidomestic firm as having a high degree of internationalization, whereas a truly global firm may be ranked low. In order to remedy this we introduce a complementary index measuring how firms are configuring their value chains - whether they are replicating value chain activities from country to country or locating them in globally specialized units in order to exploit an international division of labor. In addition to mathematical modeling and numerical examples, we examine the relevance of the new index of global specialization on data of Danish MNCs by looking at the correlation between the new global specialization index and existing indices of firms' degree of internationalization. We find that the index is able to identify a distinct group of firms with significantly higher degrees of global value chain configuration. Key words: Internationalization, value chain, global configuration. JEL Codes: F02, F23, L22, L23

    KW - Virksomhedens internationalisering

    KW - Internationalization

    KW - Value chain

    KW - Global configuration

    M3 - Working paper

    SN - 8791815088

    BT - How Do We Capture "Global Specialization" When Measuring Firms' Degree of Internationalization?

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    CY - Frederiksberg

    ER -