A regional solution to the strategy and structure of multinationals |
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| Authors: | Alan M Alain |
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| Institution: | aL. Leslie Waters Chair in International Business, Kelley School of Business, Indiana University, 1309 E. Tenth Street, Bloomington, IN 47401 1701, USA;bMcCaig Research Chair in Management at the Haskayne School of Business, University of Calgary, 2500 University Drive, NW Calgary, Alberta, T2N IN4, Canada |
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| Abstract: | The transnational solution developed by Bartlett and Ghoshal is shown to be suitable for only a few special cases of multinational enterprise (MNE) strategy and structure. As MNEs have most of their assets and sales within their home region, they are in need of regional, not transnational strategy and structure. Here we provide data on the regional dimension of assets and sales of the world’s largest 500 multinationals. We explore how the empirical reality of a regional concentration of assets and sales imposes a regional solution, rather than the transnational solution. |
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| Keywords: | Integration Internalization National responsiveness Regional strategy Upstream Downstream Transnational solution Regional solution |
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