The Regional Mne And Coordination Of Mne Organizational Structures

Authored by: Quyen T.K. Nguyen

The Routledge Companion to the Geography of International Business

Print publication date:  March  2018
Online publication date:  March  2018

Print ISBN: 9781138953345
eBook ISBN: 9781315667379
Adobe ISBN:

10.4324/9781315667379-5

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Abstract

This chapter provides an overview of the key insights resulting from International Business (IB) research on the regional strategy of multinational enterprises (MNEs) and coordination of MNEs’ organization structures. It consists of three main sections. The first section describes the debate of globalization and regionalization at the firm level with a focus on the actual behaviour of MNEs. It discusses the complex nature of regional strategy of MNEs, the definitions and measurements of regions, and the effects of regional strategy on the international expansion and performance of MNEs. The second section discusses the theory of regional MNE, which explains why MNEs concentrate their business activities within their home region. The liability of intra-regional expansion is lower than the liability of inter-regional expansion and there is unnoticed location-boundedness and region-boundedness of firm-specific advantages (FSAs). The third section discusses the regional organizational and management structures. The chapter concludes on the regional strategy and structure of MNEs.

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