Regionalization strategy and performance: The moderating role of industry dynamism and top management team diversity

• Autores: Winfried Ruigrok, Dimitrios Georgakakis, Peder Greve
• Localización: The Multinational Business Review, ISSN 1525-383X, ISSN-e 2054-1686, Vol. 21, Nº. 1, 2013, págs. 6-24
• Idioma: inglés
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• Resumen

  • 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.