Performance effects of intra- and inter-regional expansion: the moderating role of firm-specific advantages

  • Released On
    Friday, 29 July 2016
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  • DOI
    http://dx.doi.org/10.21511/ppm.14(3).2016.01
  • Article Info
    Volume 14 2016, Issue #3, pp. 8-20
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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

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