Regionalization strategy and performance:The moderating role of industry dynamism and top management team diversity

Winfried Ruigrok; Dimitrios Georgakakis; Peder Greve

doi:10.1108/15253831311309465

Regionalization strategy and performance:The moderating role of industry dynamism and top management team diversity

Winfried Ruigrok, Dimitrios Georgakakis, Peder Greve

The York Management School

Research output: Contribution to journal › Article › peer-review

Abstract

This paper contributes to the debate about the performance implications of adopting a regional as opposed to a global strategic posture. The aim of this paper is to argue that the performance effects of a regionalization strategy vary based on the characteristics of the industry in which the MNE operates and the composition of its top management team (TMT). This analysis is based on a crosssectional dataset of 211 large European MNEs headquartered in four Western European economies at the end of 2005. Results show that firms adopting a regional orientation outperform MNEs with global strategic positioning. This positive relationship is less pronounced under conditions of industry dynamism and interregional TMT diversity. The study contributes to our understanding of whether and under what conditions MNEs benefit from adopting a regional as opposed to a global strategic posture.

Original language	English
Pages (from-to)	6-24
Number of pages	19
Journal	Multinational Business Review
Volume	21
Issue number	1
DOIs	https://doi.org/10.1108/15253831311309465
Publication status	Published - 12 Apr 2013

Keywords

Diversity
Diversity management
Dynamism
Performance
Performance management
Regionalization strategy
Top management teams

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10.1108/15253831311309465

Cite this

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abstract = "This paper contributes to the debate about the performance implications of adopting a regional as opposed to a global strategic posture. The aim of this paper is to argue that the performance effects of a regionalization strategy vary based on the characteristics of the industry in which the MNE operates and the composition of its top management team (TMT). This analysis is based on a crosssectional dataset of 211 large European MNEs headquartered in four Western European economies at the end of 2005. Results show that firms adopting a regional orientation outperform MNEs with global strategic positioning. This positive relationship is less pronounced under conditions of industry dynamism and interregional TMT diversity. The study contributes to our understanding of whether and under what conditions MNEs benefit from adopting a regional as opposed to a global strategic posture.",

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Regionalization strategy and performance:The moderating role of industry dynamism and top management team diversity

Abstract

Keywords

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