IDEAS home Printed from https://ideas.repec.org/a/spr/manint/v65y2025i2d10.1007_s11575-025-00568-6.html
   My bibliography  Save this article

Asymmetries in Firm-Level Globalization: The Case of Swiss Multinational Enterprises

Author

Listed:
  • Alain Verbeke

    (University of Calgary
    University of Reading
    Vrije Universiteit Brussel)

  • David Eschmann

    (University of Fribourg)

  • Philippe Gugler

    (University of Fribourg)

Abstract

This paper addresses the regional and global strategies of multinational enterprises (MNEs), with an application to the largest Swiss companies. We extend Rugman and Verbeke’s (2004) classic approach to measure MNE globalization by adopting a multidimensional lens, whereby we focus on four distinct parameters that evaluate respectively: market success across geographic space (proxied by sales); investments as a response to foreign business opportunities (proxied by assets); human capital (as proxied by the employees’ geographic distribution); and knowledge capital (as measured by patented innovations). We observe substantial discrepancies in globalization levels according to the parameter used. According to this study, the largest segment of companies (42.1%) remains home-regional in terms of sales. Bi-regional firms constitute the second largest category, comprising 28.9% of the sample. Only 21.1% of the companies can be classified as global in terms of sales distribution. Upstream activities such as knowledge capital seem to be more home-region oriented than downstream activities. One critical conclusion of this study is that not a single large Swiss MNE can be considered global in terms of knowledge capital creation.

Suggested Citation

  • Alain Verbeke & David Eschmann & Philippe Gugler, 2025. "Asymmetries in Firm-Level Globalization: The Case of Swiss Multinational Enterprises," Management International Review, Springer, vol. 65(2), pages 305-328, April.
    • Handle: RePEc:spr:manint:v:65:y:2025:i:2:d:10.1007_s11575-025-00568-6
    DOI: 10.1007/s11575-025-00568-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11575-025-00568-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11575-025-00568-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Pannell, David J., 1997. "Sensitivity analysis of normative economic models: theoretical framework and practical strategies," Agricultural Economics, Blackwell, vol. 16(2), pages 139-152, May.
    2. Ricardo G Flores & Ruth V Aguilera, 2007. "Globalization and location choice: an analysis of US multinational firms in 1980 and 2000," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1187-1210, December.
    3. Alan M. Rugman & Alain Verbeke, 2005. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Chapters, in: Analysis of Multinational Strategic Management, chapter 8, pages 104-119, Edward Elgar Publishing.
    4. Jacquemin, Alexis P & Berry, Charles H, 1979. "Entropy Measure of Diversification and Corporate Growth," Journal of Industrial Economics, Wiley Blackwell, vol. 27(4), pages 359-369, June.
    5. Oh, Chang Hoon, 2009. "The international scale and scope of European multinationals," European Management Journal, Elsevier, vol. 27(5), pages 336-343, October.
    6. Jan-Erik Vahlne & Inge Ivarsson, 2014. "The globalization of Swedish MNEs: Empirical evidence and theoretical explanations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(3), pages 227-247, April.
    7. Gaétan de Rassenfosse & Hélène Dernis & Geert Boedt, 2014. "An Introduction to the Patstat Database with Example Queries," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 47(3), pages 395-408, September.
    8. David J. Denis & Diane K. Denis & Keven Yost, 2002. "Global Diversification, Industrial Diversification, and Firm Value," Journal of Finance, American Finance Association, vol. 57(5), pages 1951-1979, October.
    9. Daniel Sullivan, 1994. "Measuring the Degree of Internationalization of a Firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(2), pages 325-342, June.
    10. Christian Geisler Asmussen, 2009. "Local, regional, or global? Quantifying MNE geographic scope," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(7), pages 1192-1205, September.
    11. Yujin Jeong & Jordan I. Siegel, 2020. "How important is regional vs. global scope? An examination of U.S. multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1142-1160, September.
    12. W. Chan Kim, 1989. "Note---Developing a Global Diversification Measure," Management Science, INFORMS, vol. 35(3), pages 376-383, March.
    13. Thomas Osegowitsch & André Sammartino, 2008. "Reassessing (home-)regionalisation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 184-196, March.
    14. Oh, Chang Hoon & Rugman, Alan M., 0. "Regional Sales of Multinationals in the World Cosmetics Industry," European Management Journal, Elsevier, vol. 24(2-3), pages 163-173, April.
    15. Benjamin Rosa & Philippe Gugler & Alain Verbeke, 2020. "Regional and global strategies of MNEs: Revisiting Rugman & Verbeke (2004)," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1045-1053, September.
    16. John Cantwell & Lucia Piscitello, 2005. "Recent Location of Foreign-owned Research and Development Activities by Large Multinational Corporations in the European Regions: The Role of Spillovers and Externalities," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 1-16.
    17. Simon Collinson & Alan M Rugman, 2008. "The regional nature of Japanese multinational business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 215-230, March.
    18. O'Hagan-Luff, Martha & Berrill, Jenny, 2016. "US firms – How global are they? A longitudinal study," International Review of Financial Analysis, Elsevier, vol. 44(C), pages 205-216.
    19. Joseph T. Martelli & Patricia B. Abels, 2011. "Multinational corporations: the changing landscape," Management Research Review, Emerald Group Publishing Limited, vol. 34(8), pages 889-909, July.
    20. Alan M. Rugman & Alain Verbeke, 2012. "A new perspective on the regional and global strategies of multinational services firms," Chapters, in: Handbook of Research on International Strategic Management, chapter 13, pages 257-270, Edward Elgar Publishing.
    21. Joseph T. Martelli & Patricia B. Abels, 2011. "Multinational corporations: the changing landscape," Management Research Review, Emerald Group Publishing Limited, vol. 34(8), pages 889-909, July.
    22. Aggarwal, Raj & Berrill, Jenny & Hutson, Elaine & Kearney, Colm, 2011. "What is a multinational corporation? Classifying the degree of firm-level multinationality," International Business Review, Elsevier, vol. 20(5), pages 557-577, October.
    23. Kenneth G Huang & Jiatao Li, 2019. "Adopting knowledge from reverse innovations? Transnational patents and signaling from an emerging economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(7), pages 1078-1102, September.
    24. John H Dunning & Masataka Fujita & Nevena Yakova, 2007. "Some macro-data on the regionalisation/globalisation debate: a comment on the Rugman/Verbeke analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 177-199, January.
    25. Jan Hendrik Fisch & Michael-Jörg Oesterle, 2003. "Exploring The Globalization Of German Mncs With The Complex Spread And Diversity Measure," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 55(1), pages 2-21, January.
    26. Joseph T. Martelli & Patricia B. Abels, 2011. "Multinational corporations: the changing landscape," Management Research Review, Emerald Group Publishing Limited, vol. 34(8), pages 889-909, July.
    27. Ram Mudambi & Lee Li & Xufei Ma & Shige Makino & Gongming Qian & Ron Boschma, 2018. "Zoom in, zoom out: Geographic scale and multinational activity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(8), pages 929-941, October.
    28. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 19(1), pages 155-174, February.
    29. Gongming Qian & Lee Li & Ji Li & Zhengming Qian, 2008. "Regional diversification and firm performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 197-214, March.
    30. Victor B Marshall & Lance Eliot Brouthers & Dawn L Keig, 2020. "RIMS: A new approach to measuring firm internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1133-1141, September.
    31. Alain Verbeke & Régis Coeurderoy & Tanja Matt, 2018. "The future of international business research on corporate globalization that never was…," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(9), pages 1101-1112, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrik Vanek, 2022. "Aspects of Measuring Firm-Level Multinationality," MENDELU Working Papers in Business and Economics 2022-83, Mendel University in Brno, Faculty of Business and Economics.
    2. Aggarwal, Raj & Berrill, Jenny & Hutson, Elaine & Kearney, Colm, 2011. "What is a multinational corporation? Classifying the degree of firm-level multinationality," International Business Review, Elsevier, vol. 20(5), pages 557-577, October.
    3. de Jong, Gjalt & van Houten, Jerry, 2014. "The impact of MNE cultural diversity on the internationalization-performance relationship," International Business Review, Elsevier, vol. 23(1), pages 313-326.
    4. Youngok Kim & Sidney J Gray, 2017. "Internationalization strategy and the home-regionalization hypothesis: The case of Australian multinational enterprises," Australian Journal of Management, Australian School of Business, vol. 42(4), pages 673-691, November.
    5. Benjamin Rosa & Philippe Gugler & Alain Verbeke, 0. "Regional and global strategies of MNEs: Revisiting Rugman & Verbeke (2004)," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-9.
    6. Benjamin Rosa & Philippe Gugler & Alain Verbeke, 2020. "Regional and global strategies of MNEs: Revisiting Rugman & Verbeke (2004)," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1045-1053, September.
    7. Patrik Vanek, 2023. "The Demographics of World’s Largest Corporations: Focus on the Different Region Levels," MENDELU Working Papers in Business and Economics 2023-85, Mendel University in Brno, Faculty of Business and Economics.
    8. O'Hagan-Luff, Martha & Berrill, Jenny, 2016. "US firms – How global are they? A longitudinal study," International Review of Financial Analysis, Elsevier, vol. 44(C), pages 205-216.
    9. 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.
    10. Pearlean Chadha & Jenny Berrill, 2016. "An empirical investigation into the internationalization patterns of Japanese firms," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(4), pages 595-611, October.
    11. Hu, Jianwei & Hua, Xiuping & Li, Haolin & Boateng, Agyenim, 2025. "Home region orientation, international intensity, and funding performance of international crowdfunding projects," Technovation, Elsevier, vol. 140(C).
    12. 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.
    13. Rugman, Alan M. & Oh, Chang Hoon, 2010. "Does the regional nature of multinationals affect the multinationality and performance relationship?," International Business Review, Elsevier, vol. 19(5), pages 479-488, October.
    14. Alain Verbeke & Régis Coeurderoy & Tanja Matt, 2018. "The future of international business research on corporate globalization that never was…," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(9), pages 1101-1112, December.
    15. Alan M. Rugman & Alain Verbeke & Quyen T. K. Nguyen, 2011. "Fifty Years of International Business Theory and Beyond," Management International Review, Springer, vol. 51(6), pages 755-786, December.
    16. Fastoso, Fernando & Whitelock, Jeryl, 2010. "Regionalization vs. globalization in advertising research: Insights from five decades of academic study," Journal of International Management, Elsevier, vol. 16(1), pages 32-42, March.
    17. Raquel García-García & Esteban García-Canal & Mauro F. Guillén, 2019. "International Dispersion and Profitability: An Institution-Based Approach," Management International Review, Springer, vol. 59(6), pages 855-888, December.
    18. Jenny Berrill & Shengkai Sun, 2018. "An Investigation into the Benefits of Investing in Chinese Multinational Companies," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 17(2), pages 186-209, August.
    19. Iiris Saittakari & Tiina Ritvala & Rebecca Piekkari & Perttu Kähäri & Sami Moisio & Tomas Hanell & Sjoerd Beugelsdijk, 2023. "A review of location, politics, and the multinational corporation: Bringing political geography into international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 969-995, August.
    20. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, vol. 13(2), pages 159-183.

    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:spr:manint:v:65:y:2025:i:2:d:10.1007_s11575-025-00568-6. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.