Local, regional, or global? Geographic orientation and relative financial performance of emerging market multinational enterprises

Elitsa R. Banalieva and Michael D. Santoro

European Management Journal, 2009, vol. 27, issue 5, 344-355

Abstract: Summary We extend the regional/global strategies literature by analyzing the relative performance of emerging market (EM) multinational enterprises (MNEs) based on their geographic orientation. We develop a framework showing that firms adopt three geographic orientations--local, regional, and global--and test our framework with the market penetration strategies (sales) of 701 MNEs from 28 EMs during 2000-2006. Our analysis shows that distinguishing among these three geographic segments is important, as not all of these geographic segments enhance firms' financial performance relative to their industry: a combination of local and global orientations enhances while regional orientation reduces the relative financial performance of EM MNEs.

Keywords: Geographic; orientations; Regional/global; strategies; Performance; Emerging; markets; Multinationals (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (14)

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