Performance effects of intra- and inter-regional expansion: the moderating role of firm-specific advantages
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Published July 29, 2016
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DOIhttp://dx.doi.org/10.21511/ppm.14(3).2016.01
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Article InfoVolume 14 2016, Issue #3, pp. 8-20
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Cited by3 articlesJournal title: Management DecisionArticle title: The effect of inter- and intra-regional geographic diversification strategies on firm performance in ChinaDOI: 10.1108/MD-01-2018-0104Volume: 58 / Issue: 1 / First page: 16 / Year: 2020Contributors: Hueiting Tsai, Shengce Ren, Andreas B. EisingerichJournal title: Journal of World BusinessArticle title: Which regions matter for MNEs? The role of regional and firm level differencesDOI: 10.1016/j.jwb.2019.101026Volume: 55 / Issue: 1 / First page: 101026 / Year: 2020Contributors: Mehmet Demirbag, Keith W. Glaister, Abhijit SenguptaJournal title: Multinational Business ReviewArticle title: The value of internationalizationDOI: 10.1108/MBR-01-2017-0003Volume: 26 / Issue: 1 / First page: 71 / Year: 2018Contributors: Arkadiusz Ral-Trebacz, Stefan Eckert, Marcus Dittfeld
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Recent empirical work suggests that the business operations of multinational companies are rather regional than global. The authors analyze the performance impact of intra-regional (as opposed to inter-regional) expansion among companies from six West European countries. Using multilevel modeling, the authors find that an increase in a firm’s degree of regionalization leads to superior performance. The results reveal that an inter-regional strategy does not seem to be a profitable expansion option. Moreover, while examining the moderating impact of firms’ FSAs on the link between intra-regional expansion and performance, the empirical findings suggest that marketing-related FSAs tend to be more regional-bound in nature and support the positive performance effect of intra-regional expansion