Global, Local, or Regional? The Locus of MNE Strategies

Verbeke, Alain; Asmussen, Christian Geisler

doi:10.1111/joms.12190

Cited by 129 publications

(121 citation statements)

References 81 publications

Supporting

Mentioning

115

Contrasting

Unclassified

Order By: Relevance

“…transferable across regions, as explained in regional strategy theory (Oh & Rugman, 2012;Verbeke & Asmussen, 2016). Additionally, our finding underlines the need to differentiate both managerial resources and the productive services these resources can provide when applying Penrosean logic in the context of firm internationalization.…”

Section: Geographic Patterns Of International Expansion and Divestmentmentioning

confidence: 79%

“…By integrating insights from regional strategy theory to clarify certain boundary conditions of Penrosean logic in the context of international firm growth, we also respond to calls for a rethinking of existing theories on the basis of regional strategy theory (Verbeke & Asmussen, 2016). Our analyses and findings suggest that differences between regions affect both the services required and the services provided by the managerial resources of firms that operate across geographic regions.…”

Section: Discussionmentioning

confidence: 97%

“…Regional strategy theory also suggests that international expansion outside a firm's home region is associated with significantly greater challenges than expansion within a firm's home region because of ''discontinuities of distance at the regional boundary'' (Verbeke & Asmussen, 2016, p. 1055. The managerial resources and services needed to manage rapid internationalization outside a firm's home region differ from those needed to manage rapid internationalization within a firm's home region.…”

mentioning

confidence: 99%

“…The managerial resources released through the divestment of operations within a firm's home region and the services that these resources can provide are likely to differ from the resources released through the divestment of operations outside the firm's home region. Research has highlighted the differences in firms' human resource practices across regions and the greater similarity of resource management practices within a region (Collinson & Rugman, 2008;Verbeke & Asmussen, 2016); thus, there are likely differences in managerial resources across regions.…”

mentioning

confidence: 99%

“…The managerial resources and services needed to manage rapid internationalization outside a firm's home region differ from those needed to manage rapid internationalization within a firm's home region. In addition to regional institutions that facilitate the international mobility of human resources within but not across regions (Verbeke & Asmussen, 2016), the inter-regional differences in managerial resources and the services that they can provide make these resources imperfectly fungible across regions, i.e., these resources and their services are region-bound. Therefore, a firm's ability to reallocate managerial resources and their services across regions is likely to be limited.…”

mentioning

confidence: 99%

See 4 more Smart Citations

Explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector: An extended Penrosean perspective

2018

View full text Add to dashboard Cite

We adopt a Penrosean perspective to study the effect of rapid international expansion on the subsequent divestment of international operations. We draw on regional strategy theory and differentiate Penrosean managerial resources by their geographical fungibility to argue that the effect of rapid international expansion on the divestment of international operations varies with the regional patterns of firms' international expansion and international experience. We test our hypotheses using two-stage least squares (2SLS) estimation on data that capture the international expansion and divestment of retailers over the period [2003][2004][2005][2006][2007][2008][2009][2010][2011][2012]. Journal of International Business Studies (2018).

show abstract

Section: Geographic Patterns Of International Expansion and Divestmentmentioning

confidence: 79%

Section: Discussionmentioning

confidence: 97%

mentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

See 3 more Smart Citations

Explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector: An extended Penrosean perspective

2018

View full text Add to dashboard Cite

show abstract

Co‐parenting through subsidiaries: A model of value creation in the multinational firm

Barber

Villar

Madhok³

2017

Global Strategy Journal

View full text Add to dashboard Cite

Research Summary We analyze a novel way to configure and manage multinational networks and propose a model of “co‐parenting,” characterized by the sharing of parenting roles and distribution of responsibilities between two units. We develop our argument around the notion of the springboard subsidiary, an operating subsidiary that assumes headquarters’ functions since it shares greater institutional closeness with both the headquarters’ country as well as with the host region. Based upon qualitative data, our inductive model revolves around three stages: establishment, consolidation, and maturity, each of which reflects distinct roles and loci of decision making among the three actors involved: headquarters, springboard subsidiary, and local subsidiary. Overall, our study sheds distinct light on when and how headquarters add value by matching parenting to context. Managerial Summary In expanding across regions, multinational firms often face a situation where neither the local unit nor the corporate headquarters possesses the competencies to be at the competitive forefront. This article analyzes a model of interregional expansion of multinational firms by using springboard subsidiaries—operating subsidiaries that can serve as a bridge between headquarters and local subsidiaries since they share institutional and business ties with both. We develop a model in which some parenting functions—coordination, control, and knowledge creation—are distributed between headquarters and the springboard subsidiary along an accumulative process of capabilities. By demonstrating how a springboard subsidiary can help align control to context, the model offers a tool for strategic analysis that helps avoid potential value destruction by headquarters.

show abstract

The role of procedural justice for global strategy and subsidiary initiatives

Asmussen

Foss

Nell

2019

Global Strategy Journal

Self Cite

View full text Add to dashboard Cite

Research Summary The global strategy literature highlights the role of headquarters (HQ) in realizing global integration benefits while enabling independent subsidiary strategic initiatives. We construct a game‐theoretic model of the interaction between HQ and subsidiaries, and, building on procedural justice theory, we analyze the motivational costs that can result from the anticipation or realization of HQ intervention in subsidiary initiatives. We also analyze the implications for MNC‐level value creation when HQ managers, fearing subsidiary managers’ emotion‐based reactions, refrain from intervening. We derive a number of counter‐intuitive results, for example, that good HQ behavior may involve forgoing opportunities for value creation, and that procedural justice systems may sometimes be counterproductive. Managerial Summary Headquarters (HQ) in multinational corporations are required to balance global integration and local autonomy within the organization. This balancing act sometimes requires HQ to intervene in subsidiary matters and to overrule the subunits’ decisions. While an intervention might create integration advantages, it may also have a negative impact on the motivation of subsidiary managers, who might feel that their effort and their decisions are overruled. We focus on such motivational issues and investigate how fair decision‐making processes applied by the HQ influence subsidiaries’ entrepreneurial behavior and their reactions to the overruling. Our findings show that, under specific conditions, HQ need to forgo value‐creating interventions, and that a strong focus on a procedural justice culture within the firm can be detrimental.

show abstract

Global, Local, or Regional? The Locus of MNE Strategies

Cited by 129 publications

References 81 publications

Explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector: An extended Penrosean perspective

Explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector: An extended Penrosean perspective

Co‐parenting through subsidiaries: A model of value creation in the multinational firm

The role of procedural justice for global strategy and subsidiary initiatives

Contact Info

Product

Resources

About