IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v27y2013i1p147-161.html
   My bibliography  Save this article

Are firms from developed markets more international than firms from emerging markets?

Author

Listed:
  • Berrill, Jenny
  • Mannella, Giancarlo

Abstract

Regionalist supporters’ claim that most of the world's largest firms are regional rather than global and that managers should be encouraged to ‘think regional, act local and forget global’ (Rugman and Moore, 2004, p. 67). We apply the matrix of multinationality proposed by Aggarwal et al. (2011) to a sample of the world's 500 largest corporations, the Fortune Global 500. We show that these firms range from purely domestic to regional, trans-regional and entirely global with most lying in the trans-regional and global categories. Our results imply that global strategies are essential to international trade and management in today's business environment. We compare multinationality results by market type (developed versus emerging market), industry, size and age. We find that firms from more advanced economies tend to be older, larger and more multinational than firms from emerging markets. We find no relationship between multinationality and age or multinationality and size, and conclude that developed market firms are not more multinational as a result of size, age or industrial structure.

Suggested Citation

  • Berrill, Jenny & Mannella, Giancarlo, 2013. "Are firms from developed markets more international than firms from emerging markets?," Research in International Business and Finance, Elsevier, vol. 27(1), pages 147-161.
    • Handle: RePEc:eee:riibaf:v:27:y:2013:i:1:p:147-161
    DOI: 10.1016/j.ribaf.2012.04.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531912000190
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2012.04.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ravi Ramamurti, 2004. "Developing countries and MNEs: extending and enriching the research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 277-283, July.
    2. Ricardo G Flores & Ruth V Aguilera, 2007. "Globalization and location choice: an analysis of US multinational firms in 1980 and 2000," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1187-1210, December.
    3. Alan M. Rugman & Alain Verbeke, 2005. "Extending the Theory of the Multinational Enterprise: Internalization and Strategic Management Perspectives," Chapters, in: Analysis of Multinational Strategic Management, chapter 7, pages 91-103, Edward Elgar Publishing.
    4. Alan M. Rugman & Alain Verbeke, 2005. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Chapters, in: Analysis of Multinational Strategic Management, chapter 8, pages 104-119, Edward Elgar Publishing.
    5. N/A, 2001. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 175(1), pages 29-58, January.
    6. Wu, Xiaohong & Strange, Roger, 2000. "The location of foreign insurance companies in China," International Business Review, Elsevier, vol. 9(3), pages 383-398, June.
    7. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(3), pages 255-255, May.
    8. Bekaert, Geert & Harvey, Campbell R., 2002. "Research in emerging markets finance: looking to the future," Emerging Markets Review, Elsevier, vol. 3(4), pages 429-448, December.
    9. Alan M Rugman & Alain Verbeke, 2007. "Liabilities of regional foreignness and the use of firm-level versus country-level data: a response to Dunning et al. (2007)," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 200-205, January.
    10. Rugman, Alan M., 2003. "Regional strategy and the demise of globalization," Journal of International Management, Elsevier, vol. 9(4), pages 409-417.
    11. Bird, Allan & Stevens, Michael J., 2003. "Toward an emergent global culture and the effects of globalization on obsolescing national cultures," Journal of International Management, Elsevier, vol. 9(4), pages 395-407.
    12. Jiatao Li & Rajiv Kozhikode, 2008. "Knowledge management and innovation strategy: The challenge for latecomers in emerging economies," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 429-450, September.
    13. José Campa & Mauro F. Guillén, 1999. "The Internalization of Exports: Firm- and Location-Specific Factors in a Middle-Income Country," Management Science, INFORMS, vol. 45(11), pages 1463-1478, November.
    14. Ted London & Stuart L Hart, 2004. "Reinventing strategies for emerging markets: beyond the transnational model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 350-370, September.
    15. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 81-98, March.
    16. Clark, Terry & Knowles, Lynnette & Hodis, Monica, 2004. "Global dialogue: a response to the responders in the special globalization issue of JIM," Journal of International Management, Elsevier, vol. 10(4), pages 511-514.
    17. Rugman,Alan M., 2005. "The Regional Multinationals," Cambridge Books, Cambridge University Press, number 9780521842655, September.
    18. Alan M Rugman & Alain Verbeke, 2008. "The theory and practice of regional strategy: a response to Osegowitsch and Sammartino," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 326-332, March.
    19. Stevens, Michael J. & Bird, Allan, 2004. "On the myth of believing that globalization is a myth: or the effects of misdirected responses on obsolescing an emergent substantive discourse," Journal of International Management, Elsevier, vol. 10(4), pages 501-510.
    20. Aggarwal, Raj & Berrill, Jenny & Hutson, Elaine & Kearney, Colm, 2011. "What is a multinational corporation? Classifying the degree of firm-level multinationality," International Business Review, Elsevier, vol. 20(5), pages 557-577, October.
    21. Bruner, Robert F. & Conroy, Robert M. & Estrada, Javier & Kritzman, Mark & Li, Wei, 2002. "Introduction to 'Valuation in Emerging Markets'," Emerging Markets Review, Elsevier, vol. 3(4), pages 310-324, December.
    22. Alvaro Cuervo-Cazurra & Mehmet Genc, 2008. "Transforming disadvantages into advantages: developing-country MNEs in the least developed countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(6), pages 957-979, September.
    23. Walid Hejazi, 2007. "Reconsidering the concentration of US MNE activity: Is it global, regional or national?," Management International Review, Springer, vol. 47(1), pages 5-27, February.
    24. John H Dunning & Masataka Fujita & Nevena Yakova, 2007. "Some macro-data on the regionalisation/globalisation debate: a comment on the Rugman/Verbeke analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 177-199, January.
    25. N/A, 2001. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 176(1), pages 35-60, April.
    26. Klaus E Meyer, 2004. "Perspectives on multinational enterprises in emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 259-276, July.
    27. Raja Kali & Javier Reyes, 2007. "The architecture of globalization: a network approach to international economic integration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 595-620, July.
    28. Clark, Terry & Knowles, Lynette L., 2003. "Global myopia: globalization theory in International Business," Journal of International Management, Elsevier, vol. 9(4), pages 361-372.
    29. Rugman, Alan & Hodgetts, Richard, 2001. "The end of global strategy," European Management Journal, Elsevier, vol. 19(4), pages 333-343, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Briano-Turrent, Guadalupe D.C. & Li, Mingsheng & Peng, Hongfeng, 2020. "The impact of family-CEOs and their demographic characteristics on dividend payouts: Evidence from Latin America," Research in International Business and Finance, Elsevier, vol. 51(C).
    2. Rao-Nicholson, Rekha & Salaber, Julie & Cao, Tuan Hiep, 2016. "Long-term performance of mergers and acquisitions in ASEAN countries," Research in International Business and Finance, Elsevier, vol. 36(C), pages 373-387.
    3. Losilla, L. & Engler, A. & Otter, V., 2018. "Internationalization paths of fruit export companies from emerging economies: Are they regionally or globally oriented?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277400, International Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aggarwal, Raj & Berrill, Jenny & Hutson, Elaine & Kearney, Colm, 2011. "What is a multinational corporation? Classifying the degree of firm-level multinationality," International Business Review, Elsevier, vol. 20(5), pages 557-577, October.
    2. Dirk Ulrich Gilbert & Patrick Heinecke, 2014. "Success Factors of Regional Strategies for Multinational Corporations: Exploring the Appropriate Degree of Regional Management Autonomy and Regional Product/Service Adaptation," Management International Review, Springer, vol. 54(5), pages 615-651, October.
    3. Aguilera, Ruth V. & Flores, Ricardo G. & Vaaler, Paul M., 2007. "Is It All a Matter of Grouping? Examining the Regional Effect in Global Strategy Research," Working Papers 07-0106, University of Illinois at Urbana-Champaign, College of Business.
    4. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    5. Youngok Kim & Sidney J Gray, 2017. "Internationalization strategy and the home-regionalization hypothesis: The case of Australian multinational enterprises," Australian Journal of Management, Australian School of Business, vol. 42(4), pages 673-691, November.
    6. Gary A.S. Cook & Naresh R. Pandit, 2014. "Agglomeration and flows of outward direct investment: an analysis of financial services in the United Kingdom," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Agglomeration, Clusters and Entrepreneurship, chapter 3, pages 52-65, Edward Elgar Publishing.
    7. Jenny Berrill & Shengkai Sun, 2018. "An Investigation into the Benefits of Investing in Chinese Multinational Companies," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 17(2), pages 186-209, August.
    8. Daniele Cerrato & Mariacristina Piva, 2015. "The Effect of Global Orientation on the Performance of International New Ventures: Evidence from Italy," Management International Review, Springer, vol. 55(6), pages 857-883, December.
    9. Vaaler, Paul M. & Aguilera, Ruth V. & Flores, Ricardo G., 2007. "New Methods for Ex Post Evaluation of Regional Grouping Schemes in International Business Research: A Simulated Annealing Approach," Working Papers 07-0105, University of Illinois at Urbana-Champaign, College of Business.
    10. Heechun Kim & Jie Wu & Douglas A. Schuler & Robert E. Hoskisson, 2020. "Chinese multinationals’ fast internationalization: Financial performance advantage in one region, disadvantage in another," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1076-1106, September.
    11. Alan M. Rugman & Alain Verbeke & Quyen T. K. Nguyen, 2011. "Fifty Years of International Business Theory and Beyond," Management International Review, Springer, vol. 51(6), pages 755-786, December.
    12. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    13. Pearlean Chadha & Jenny Berrill, 2016. "An empirical investigation into the internationalization patterns of Japanese firms," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(4), pages 595-611, October.
    14. Yamin, Mo & Sinkovics, Rudolf R., 2009. "Infrastructure or foreign direct investment?: An examination of the implications of MNE strategy for economic development," Journal of World Business, Elsevier, vol. 44(2), pages 144-157, April.
    15. Patrik Vanek, 2022. "Aspects of Measuring Firm-Level Multinationality," MENDELU Working Papers in Business and Economics 2022-83, Mendel University in Brno, Faculty of Business and Economics.
    16. repec:bla:jomstd:v:47:y:2010:i:s2:p:1534-1560 is not listed on IDEAS
    17. Cook, Gary A.S. & Pandit, Naresh R. & Lööf, Hans & Johansson, Börje, 2012. "Geographic clustering and outward foreign direct investment," International Business Review, Elsevier, vol. 21(6), pages 1112-1121.
    18. Guey-Huey Li & Chwo-Ming Yu & Dah-Hsian Seetoo, 2010. "Toward a Theory of Regional Organization," Management International Review, Springer, vol. 50(1), pages 5-33, February.
    19. van den Buuse, Daniel & Kolk, Ans, 2019. "An exploration of smart city approaches by international ICT firms," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 220-234.
    20. Dorothee J. Feils & Manzur Rahman, 2011. "The Impact of Regional Integration on Insider and Outsider FDI," Management International Review, Springer, vol. 51(1), pages 41-63, February.
    21. Alan M. Rugman & Chang Hoon Oh, 2011. "Multinational Enterprises and Regional Economic Integration: Rethinking Key Metrics in International Business," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 4, Edward Elgar Publishing.

    More about this item

    Keywords

    Emerging markets MNCs; Firm classification;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:27:y:2013:i:1:p:147-161. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.