Local, Regional or Global? Quantifying MNC Geographic Scope

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    Abstract

    This paper proposes a multidimensional index of regional and global orientation which can be used in confirmatory studies with econometric methodologies. Unlike extant measures, the index is objectively scaled and controls for home country orientation and market size differences. The index is shown to be consistent with models of internationalization that incorporate different assumptions about strategic choice and global competition. Preliminary results show that large multinationals follow home region oriented internationalization paths, although much of the regional effect reported by previous studies in fact reflects strong home country biases.
    Original languageEnglish
    Place of PublicationKøbenhavn
    PublisherCenter for Strategic Management and Globalization
    Number of pages31
    ISBN (Print)8791815320
    Publication statusPublished - Sep 2006
    SeriesSMG Working Paper
    Number14/2006

    Keywords

    • Globalization
    • Regional integration
    • Global strategy
    • Regional strategy
    • Local strategy
    • Triad
    • Liability of foreignness

    Cite this

    Geisler Asmussen, C. (2006). Local, Regional or Global? Quantifying MNC Geographic Scope. Center for Strategic Management and Globalization. SMG Working Paper, No. 14/2006