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Globalization of an ethnocentric firm: An evolutionary perspective

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  • Thomas W. Malnight

Abstract

This paper investigates the globalization process at one traditionally ethnocentric firm. Whereas there has been substantial research on how multinational corporations (MNCs) structure and manage worldwide activities, little research has investigated how MNCs move toward proposed integrated network structures. The paper develops an evolutionary perspective of this process at traditionally ethnocentric firms, suggesting that it is driven by a shifting mix of strategic objectives over time, each of which differs in its impact on various functions. The paper suggests that globalization occurs at the level of the function, rather than the firm, and highlights important differences in the timing, sequence, and objectives of the process across functions. It also describes the importance of development patterns across functions, as changes in one function create opportunities and requirements for changes in others. Finally, the paper develops a framework of the process that can be tested at subsequent sites.

Suggested Citation

  • Thomas W. Malnight, 1995. "Globalization of an ethnocentric firm: An evolutionary perspective," Strategic Management Journal, Wiley Blackwell, vol. 16(2), pages 119-141.
    • Handle: RePEc:bla:stratm:v:16:y:1995:i:2:p:119-141
    DOI: 10.1002/smj.4250160204
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    Cited by:

    1. Trautmann, Gerhard & Bals, Lydia & Hartmann, Evi, 2009. "Global sourcing in integrated network structures: The case of hybrid purchasing organizations," Journal of International Management, Elsevier, vol. 15(2), pages 194-208, June.
    2. Blomkvist, Katarina & Kappen, Philip & Zander, Ivo, 2017. "Gone are the creatures of yesteryear? On the diffusion of technological capabilities in the ‘modern’ MNC," Journal of World Business, Elsevier, vol. 52(1), pages 1-16.
    3. Alarik, Björn, 2000. "From M-form to N-form: The Structure of Multinational Corporations," FE rapport 2000-378, University of Gothenburg, Department of Business Administration.
    4. Phene, Anupama & Almeida, Paul, 2003. "How do firms evolve? The patterns of technological evolution of semiconductor subsidiaries," International Business Review, Elsevier, vol. 12(3), pages 349-367, June.
    5. Schmid, Stefan & Grosche, Philipp & Mayrhofer, Ulrike, 2016. "Configuration and coordination of international marketing activities," International Business Review, Elsevier, vol. 25(2), pages 535-547.
    6. Zander, Ivo, 1998. "The evolution of technological capabilities in the multinational corporation--dispersion, duplication and potential advantages from multinationality," Research Policy, Elsevier, vol. 27(1), pages 17-35, May.
    7. Jae C. Jung & Paul W. Beamish & Anthony Goerzen, 2010. "Dynamics of Experience, Environment and MNE Ownership Strategy," Management International Review, Springer, vol. 50(3), pages 267-296, June.
    8. Schmid, Stefan & Schurig, Andreas, 2003. "The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary's business network," International Business Review, Elsevier, vol. 12(6), pages 755-782, December.
    9. Michael J. Enright & Venkat Subramanian, 2007. "An organizing framework for MNC subsidiary typologies," Management International Review, Springer, vol. 47(6), pages 895-924, December.
    10. Drogendijk, Rian & Andersson, Ulf, 2013. "Relationship development in Greenfield expansions," International Business Review, Elsevier, vol. 22(2), pages 381-391.
    11. Drogendijk, H.J., 2001. "Expansion patterns of Dutch firms in Central and Eastern Europe : Learning to internationalize," Other publications TiSEM 18571cef-0dd0-46ff-82aa-3, Tilburg University, School of Economics and Management.
    12. Geoffrey Ditta, 2022. "Cross Borders Companies and Worldwide Industry Management. Past, present, and future for businesses at time of slowbalization," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 26, pages 78-92, July.
    13. Akhter, Syed H., 2004. "Is globalization what it's cracked up to be? Economic freedom, corruption, and human development," Journal of World Business, Elsevier, vol. 39(3), pages 283-295, August.
    14. Alexandre Bohas & Michael J. Morley & Aseem Kinra, 2021. "Perlmutter revisited: Revealing the anomic mindset," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1695-1723, December.
    15. Lo, Fang-Yi & Bui, Quang-Tuan & Huarng, Kun-Huang, 2023. "The pace of international expansion for digital multinational enterprises," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    16. Drogendijk, H.J., 2005. "The Development of Network Relations of MNC Subsidiaries : How Internal MNC and External (Local) Relations Evolve," Other publications TiSEM 4bf995a4-6f3b-41b8-bb40-1, Tilburg University, School of Economics and Management.
    17. Charles E. Bryant & Rajshekhar G. Javalgi, 2016. "Global Economic Integration in Developing Countries: The Role of Corruption and Human Capital Investment," Journal of Business Ethics, Springer, vol. 136(3), pages 437-450, July.
    18. Lu, Jane W., 2003. "The evolving contributions in international strategic management research," Journal of International Management, Elsevier, vol. 9(2), pages 193-213.
    19. Julian Birkinshaw & Tina C. Ambos & Cyril Bouquet, 2017. "Boundary Spanning Activities of Corporate HQ Executives Insights from a Longitudinal Study," Journal of Management Studies, Wiley Blackwell, vol. 54(4), pages 422-454, June.
    20. Kuemmerle, Walter, 1998. "Optimal scale for research and development in foreign environments--an investigation into size and performance of research and development laboratories abroad," Research Policy, Elsevier, vol. 27(2), pages 111-126, June.
    21. Holm, Ulf & Sharma, D. Deo, 2006. "Subsidiary marketing knowledge and strategic development of the multinational corporation," Journal of International Management, Elsevier, vol. 12(1), pages 47-66, March.
    22. Pangarkar, Nitin & Wu, Jie, 2012. "Industry globalization and the performance of emerging market firms: Evidence from China," International Business Review, Elsevier, vol. 21(2), pages 196-209.

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