IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v27y2009i5p344-355.html
   My bibliography  Save this article

Local, regional, or global? Geographic orientation and relative financial performance of emerging market multinational enterprises

Author

Listed:
  • Banalieva, Elitsa R.
  • Santoro, Michael D.

Abstract

Summary We extend the regional/global strategies literature by analyzing the relative performance of emerging market (EM) multinational enterprises (MNEs) based on their geographic orientation. We develop a framework showing that firms adopt three geographic orientations--local, regional, and global--and test our framework with the market penetration strategies (sales) of 701 MNEs from 28 EMs during 2000-2006. Our analysis shows that distinguishing among these three geographic segments is important, as not all of these geographic segments enhance firms' financial performance relative to their industry: a combination of local and global orientations enhances while regional orientation reduces the relative financial performance of EM MNEs.

Suggested Citation

  • Banalieva, Elitsa R. & Santoro, Michael D., 2009. "Local, regional, or global? Geographic orientation and relative financial performance of emerging market multinational enterprises," European Management Journal, Elsevier, vol. 27(5), pages 344-355, October.
  • Handle: RePEc:eee:eurman:v:27:y:2009:i:5:p:344-355
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237309000322
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yildirim, Canan & Efthyvoulou, Georgios, 2018. "Bank value and geographic diversification: regional vs global," Journal of Financial Stability, Elsevier, vol. 36(C), pages 225-245.
    2. Elitsa R. Banalieva & Michael D. Santoro & Joy Ruihua Jiang, 2012. "Home Region Focus and Technical Efficiency of Multinational Enterprise," Management International Review, Springer, vol. 52(4), pages 493-518, August.
    3. Zdziarski Michał & Światowiec-Szczepańska Justyna & Troilo Mike & Małys Łukasz, 2017. "Adventurous Foreign Direct Investment," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 25(2), pages 117-139, June.
    4. Jean-Luc Arregle & Toyah L Miller & Michael A Hitt & Paul W Beamish, 2016. "How does regional institutional complexity affect MNE internationalization?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(6), pages 697-722, August.
    5. Kübra Mert, 2020. "Türk Yazınında Uluslararası İşletmecilik: 1990-2019 Yıllarına Dair Bir İçerik Analizi," Istanbul Management Journal, Istanbul University Business School, vol. 0(89), pages 97-132, December.
    6. Justine Kyove & Katerina Streltsova & Ufuoma Odibo & Giuseppe T. Cirella, 2021. "Globalization Impact on Multinational Enterprises," World, MDPI, vol. 2(2), pages 1-15, April.
    7. Shih-Yung Wei & Li-Wei Lin & Su-Mei Gan, 2019. "The Influence of Internationalization Degree on the Performance of Industry-Specific Companies: A Case Study of Taiwan (2001-2017)," International Journal of Economics and Financial Issues, Econjournals, vol. 9(4), pages 212-227.
    8. Daniele Cerrato & Mariacristina Piva, 2015. "The Effect of Global Orientation on the Performance of International New Ventures: Evidence from Italy," Management International Review, Springer, vol. 55(6), pages 857-883, December.
    9. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    10. Dirk Ulrich Gilbert & Patrick Heinecke, 2014. "Success Factors of Regional Strategies for Multinational Corporations: Exploring the Appropriate Degree of Regional Management Autonomy and Regional Product/Service Adaptation," Management International Review, Springer, vol. 54(5), pages 615-651, October.
    11. Verbeke, Alain & Kano, Liena & Yuan, Wenlong, 2016. "Inside the regional multinationals: A new value chain perspective on subsidiary capabilities," International Business Review, Elsevier, vol. 25(3), pages 785-793.
    12. Yildirim, Canan & Kasman, Adnan & Gulamhussen, Mohamed Azzim, 2023. "Efficiency of multinational banks: Impacts of geographic and product loci," International Business Review, Elsevier, vol. 32(5).
    13. Luiz, John M. & Barnard, Helena, 2022. "Home country (in)stability and the locational portfolio construction of emerging market multinational enterprises," Journal of Business Research, Elsevier, vol. 151(C), pages 17-32.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:27:y:2009:i:5:p:344-355. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.