Success Factors of Regional Strategies for Multinational Corporations

Heinecke, Patrick

doi:10.1007/978-3-7908-2640-1

Cited by 15 publications

(4 citation statements)

References 60 publications

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“…In PLS, R 2 values provide some guidance about the goodness of fit of a model, where values of ∼0.19 indicate weak model fit, ∼0.33 indicate moderate model fit and ∼0.67 indicate substantial model fit (Chin, 1998). However, “… no universally valid cut off point for a sufficient R 2 exists …” (Heinecke, 2011, p. 92).…”

Section: Analysis and Resultsmentioning

confidence: 99%

Walking the managerial tightrope: top management involvement in product innovation projects

Felekoğlu

Durmuşoğlu

Maier

et al. 2022

EJIM

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PurposeThis study examines how technical drivers as well as social drivers influence organic communication and top management involvement (TMI) in new product development (NPD) projects. Technical drivers are of strategic importance and product innovativeness and social drivers are of intrinsic and extrinsic relevance. Organic communication is defined as continuous, bidirectional and informal communication between top management and the NPD teams. Further, arguing that TMI must be studied as a multifaceted construct, it is conceptualized to occur as guidance, active motivation and providing resources and creating a tolerant climate. Subsequently, the effect of TMI and organic communication on NPD performance is investigated.Design/methodology/approachThe data set, collected via surveys from top managers and project managers involved in 86 NPD projects in 85 firms, is analyzed using PLS structural equation modeling.FindingsThe authors show that the strategic importance of the project has a positive influence on TMI through active motivation, providing resources and creating a tolerant climate for innovation, but does not have an effect on guidance. Results also show that active motivation and organic communication improve budget and schedule adherence, whereas providing guidance and stimulating a tolerant climate have detrimental effects. In summary, the results show that only active motivation enhances all types of performance while stimulating a tolerant climate appears to have the opposite effect. The results revealed that organic communication between top management and the NPD team has a strong positive effect on all elements of TMI (providing guidance, actively motivating the NPD team, providing resources and creating a tolerant climate). In other words, when top management communicates with the NPD team throughout the project in an informal way and listens to them in addition to engaging in a one-way communication, they are more likely to be seen by the team as being deeply involved in the project.Practical implicationsExecutives must walk a managerial tightrope to actively motivate and to assist in providing resources, yet they must not be overbearing with direct guidance and must limit their tolerance for failures.Originality/valueInvolvement of key organizational actors such as top management and the link to project performance has attracted significant attention in research. However, nuanced empirical insights into the dyad of top management and project teams has so far been absent. The study’s findings detail the effect of technical and social drivers of top management involvement in new product development projects. Most notably, (1) the effect of motivation and stimulating a tolerant climate on performance, and (2) the effect of organic communication on top management involvement. Moreover, this study is unique in that it empirically examines TMI from both top management and team perspectives.

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Section: Analysis and Resultsmentioning

confidence: 99%

Walking the managerial tightrope: top management involvement in product innovation projects

Felekoğlu

Durmuşoğlu

Maier

et al. 2022

EJIM

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“…They find that performance significantly reduces home region orientation, but home-region orientation does not have a significant effect on performance. Gilbert and Heinecke (2014) argue that the relationship between regional strategies and MNE performance might be contingent upon conditions and developments within the firm and external environments (Banalieva and Dhanaraj, 2013;Bausch, Fritz, and Boesecke, 2007;Heinecke, 2011). Gilbert and Heinecke (2014) examine success factors of regional strategies for MNEs by exploring the degree of regional management and product/ service adaptations to regional market requirements and regional differences, which might lead to better regional performance.…”

Section: Regionalization and International Expansionmentioning

confidence: 99%

The Regional Mne And Coordination Of Mne Organizational Structures

Nguyen¹

2018

The Routledge Companion to the Geography of International Business

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“…Culture, choice, tastes are not the same all over the world. Some current literature on regional multinationals (McKinsey Global Institute 2019; UNTAD, WTO, and World economic reports 2018; Rugman 2015Rugman , 2011Rugman ,2012Arregle et al 2013;Heinecke 2011) stated that regional strategies of multinational corporations defined a way of internationalizing strategies that blind together local responsiveness and global integration. This is supported by Banalieva and Dhanaraj 2013;Ghemawat 2017 on semi globalization of integrating various types of markets cross-border is linked together.…”

Section: Introductionmentioning

confidence: 99%

Effects of Regional Strategies on Multinational Corporations in Nigeria

Deman¹,

Lawalson²,

A³

2021

theijbm

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This study examined the effects of regional strategies on multinational corporations in Nigeria. Relying on secondary data and review of dependency and contingency theories, this study revealed that regional management autonomy, product comforts, and climate design adaptation for each region are very important determinants of multinational corporations' operations subject to environmental considerations. This study concluded that multinational corporations must engage in fair treatment of involvement of the society for objectives optimizations. This study recommended multinational corporations should integrate representatives of various parties of the region where they operate in effective decision making and participation for benefits.

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Success Factors of Regional Strategies for Multinational Corporations

Cited by 15 publications

References 60 publications

Walking the managerial tightrope: top management involvement in product innovation projects

Walking the managerial tightrope: top management involvement in product innovation projects

The Regional Mne And Coordination Of Mne Organizational Structures

Effects of Regional Strategies on Multinational Corporations in Nigeria

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