Alan Rugman and co-authors argue that globalisation, and with it global strategy, is a myth. This contention rests on a taxonomy of the world's largest firms based on their sales, showing an overwhelming share of home-regional firms. We question the rationales underpinning their classification scheme. When retesting the data using different schema we find that the original results are far from robust, with a significant share of firms attaining bi-regional or global status. Further longitudinal analysis shows that large firms increasingly are extending their sales beyond the home region. Our results defy regionalisation theory in its current form, and we call for refinements through further research. Journal of International Business Studies (2008) 39, 184–196. doi:10.1057/palgrave.jibs.8400345
Purpose-The paper aims to motivate more rigorous theoretical and empirical specification of the home regionalization phenomenon, in particular the dynamics of shifting advantage over time within a multinational enterprise. It aims to improve dialogue among regionalization researchers. Design/methodology/approach-Contrasting the economizing and behavioral perspectives on internationalization, the paper presents five different archetypes of the home-regionalization phenomenon. These archetypes are predicated on strategic management stylizations of competitive advantage. Findings-The paper demonstrates that the notion of home regionalization as a dominant and superior model for firm internationalization remains a promising yet under-explained and inconsistently articulated thesis. By introducing and exploring the archetypes, it shows the diversity of home regionalization theses, and the prospect that multiple forms of regionalization may be at play for different firms, industries and locations. Originality/value-The paper presents the full complement of archetypes of the home-regionalization phenomenon and explores their corresponding assumptions. These explorations open up new empirical and theoretical research avenues for distinguishing any genuine region effects.
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