425 research outputs found
Liabilities of Regional Foreignness and the Use of Firm Level and Country Level Data
No full textWe are pleased that Dunning et al. (2006) have provided macro (country) level data demonstrating the increased internationalization of many nations over the past decade. We also appreciate their findings lending support to our perspective on the regional nature of world business. Our work was based solely on micro (firm) level data, see Rugman and Verbeke (2004a). Both country level data and firm level data have methodological problems which we attempt to reconcile in this comment. We also address the broader conceptual issues of how to interpret country level versus firm level data.Regional strategy, home region bound firm-specific advantages, liability of regional foreignness, methodology
Regional Multinationals and the Korean Comestics Industry
No full textThis paper analyzes the market penetration and expansion strategy of cosmetics and toiletries multinational enterprises (MNEs) in South Korea from the perspective of regional strategy as developed recently by Rugman. We find that MNEs have different market entry and expansion strategies in the home region and in the foreign region. Home region MNEs (Japanese MNEs in this case), in general, utilize their firm-specific advantages (FSAs) better than foreign region MNEs (European and MNEs from the Americas in this case). Due to differences in transaction costs, home region MNEs exploit downstream FSAs while foreign region MNEs develop upstream FSAs. Market similarity also leads to a greater incentive to operate in the home region rather than in foreign regions. The home region effect significantly increases the likelihood of entry into foreign markets as the host country’s “diamond” significantly affects the market entry strategies of MNEs.regional strategy, market penetration, cosmetics industry, double diamond, South Korea
Multinational Enterprises in the New Europe: Are They Really Global?
No full textDespite a pervasive belief that the world’s largest firms compete globally, the vast majority have most of their sales in their home region. Of the top 500 firms for which regional sales data are available, 118 are from Europe, and they compete predominantly within the European region. On average, 62.8% of their sales are in their home region; only three are global, 8 are host-region oriented and 16 are bi-regional, while 86 are home-region based. To illustrate the four categories, we present case studies of 9 European multinationals — Carrefour, TotalFinaElf, Deutsche Bank, Nokia, Philips, GlaxoSmithKline, L’Oréal Paris, Diageo,and AstraZeneca. We analyze the geographical distribution of their operations and their current structure. We also show that management research is strongly focusedon the special cases of global and bi-regional firms, rather than on the large majority of home-region firms. This implies that managing in the new Europe needs tobe regional, not global.
The Regional Sales of Multinationals in the World Cosmetics Industry
No full textThis paper analyzes the regional characteristics and strategies of multinational enterprises (MNEs) in the world cosmetics and toiletries industry, based on the new work by Rugman on regional strategy. We test the proposition that MNEs may asymmetrically develop their upstream and downstream firm specific advantages (FSAs). We find that the upstream activities of the MNEs in cosmetics are home region based but that downstream activities are less so. Further, the asymmetry of FSAs in the world cosmetics industry is mainly due to the atypical Asian entry strategies of North American and West European cosmetics MNEs. Two case studies confirm how variations in FSAs can affect regional strategy.regionalism, regional strategy, cosmetics industry, firm specific advantage, Avon, Gucci
Alan M. Rugman : L'ancrage régional des stratégies d'internationalisation
No full textNational audienceAlan M. Rugman est un enseignant-chercheur qui s'intéresse aux firmes multinationales (FMN), en particulier à leur existence, leurs caractéristiques et leurs stratégies de développement. La plupart de ses investigations concernent les grandes entreprises multinationales répertoriées dans le classement " Global Fortune 500 ". Dans ses recherches, l'auteur souligne le rôle joué par les FMN dans le processus de mondialisation économique, en mettant l'accent sur le caractère souvent " régional " des stratégies empruntées. L'analyse proposée dans ce chapitre porte sur les principaux travaux réalisés par l'auteur et leur impact sur le champ du management international
The Regional Nature of World Banking
No full textOf the forty banks included in the world’s largest 500 firms, none operate on a global basis. All but one are heavily dependent on their home region, with an average of 78.3% of their sales being intra-regional. The other bank is European owned but has a majority of its sales in North America, i.e. it is host-region oriented. The insularity of the world’s largest banks is not a sector-specific factor—only nine of the world’s 500 largest firms are global, and the vast majority are like the banks, home-region based.regional, triad, banking, intra-regional, global
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Reconciling internalization theory and the eclectic paradigm
No full textThe eclectic paradigm of Dunning (1980) (with its OLI and
four motives for FDI framework) can be reconciled with the firm
and country matrix of Rugman (1981). However, the fit is not perfect.
The main reason for misalignment is that Dunning is focused upon outward
FDI into host economies, whereas Rugman’s matrix is for firm-level strategy
covering MNE activity in both home and host countries
Towards regional entities in Asia-Pacific: the catalytic role of Japanese foreign investment in service industries
No full textRegional Transnationals and Triad Strategy
No full textIn this paper, we address the geographic distribution of sales of some of the world’s largest multinational enterprises (MNEs), with a focus on the share of each leg of the ‘Triad’ (the North-American Free Trade Agreement or NAFTA-zone, the European Union - E.U., and Asia) in these firms’ overall sales. Our view is that a firm has achieved global corporate success only if it is able to earn a balanced regional distribution of sales. Only high actual sales across the globe, especially in the wealthy and technologically advanced triad regions, demonstrate both strong firm-level capabilities at the supply side to market products and services worldwide, and a high willingness of sophisticated consumers at the demand side, to pay for the firm’s output. With respect to the supply side, we develop a new conceptual framework, which distinguishes among the global, regional and national loci of MNE decision-making, as well as the global, regional and national levels of product standardization. Our main point is that the regional dimension is important for many firms, because it is a geographic level where many important decisions are made, and where product standardization may be appropriate. We then identify the twenty MNEs with the highest foreign-to-total (F/T) sales ratios in the UNCTAD list of most internationalized companies in terms of foreign asset base that are also Fortune 500 firms. For this set of large, highly internationalized companies, we measure the distribution of their sales across triad regions. We find that only three of these firms actually have a substantial portion of their sales across all three legs of the triad. The other MNEs are either bi-regional, host-region oriented or home-triad region oriented. In other words, the empirical evidence reveals that even these highly internationalized MNEs do not have a balanced global distribution of sales. We further elaborate on this empirical finding by investigating whether a regional component can be identified in twelve specific cases of MNE strategy, building upon our new framework.globalization, regionalization, triad, transnational enterprises, triad home-base, regional, global, bi-regional, Wal-Mart
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