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Strategic complexity and global expansion: An empirical study of newcomer Multinational Corporations from small economies

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  • Oladottir, Asta Dis
  • Hobdari, Bersant
  • Papanastassiou, Marina
  • Pearce, Robert
  • Sinani, Evis

Abstract

The purpose of this paper is to analyse the determinants of global expansion strategies of newcomer Multinational Corporations (MNCs) by focusing on Iceland, Israel and Ireland. We argue that newcomer MNCs from small open economies pursue complex global expansion strategies (CGES). We distinguish four different types of global expansion strategies, namely, horizontal, vertical, lateral integration, and risk diversification. Building upon the traditions of Caves and Dunning and applying a multinomial logistic approach, we model CGES as a function of firm and country specific factors. The empirical evidence suggests that newcomer MNCs move away from simplistic dualities in the formulation of their strategic choices towards more complex options as a means of maintaining and enhancing their global competitiveness.

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  • Oladottir, Asta Dis & Hobdari, Bersant & Papanastassiou, Marina & Pearce, Robert & Sinani, Evis, 2012. "Strategic complexity and global expansion: An empirical study of newcomer Multinational Corporations from small economies," Journal of World Business, Elsevier, vol. 47(4), pages 686-695.
  • Handle: RePEc:eee:worbus:v:47:y:2012:i:4:p:686-695
    DOI: 10.1016/j.jwb.2011.08.003
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    Cited by:

    1. Meyer, Klaus E. & Su, Yu-Shan, 2015. "Integration and responsiveness in subsidiaries in emerging economies," Journal of World Business, Elsevier, vol. 50(1), pages 149-158.
    2. repec:spr:epolit:v:35:y:2018:i:2:d:10.1007_s40888-018-0120-8 is not listed on IDEAS

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