IDEAS home Printed from https://ideas.repec.org/p/iuk/wpaper/2005-12.html
   My bibliography  Save this paper

Multinational Enterprises in the New Europe: Are They Really Global?

Author

Listed:
  • Alan M. Rugman

    (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)

  • Simon Collinson

    (Warwick Business School, University of Warwick)

Abstract

Despite a pervasive belief that the world’s largest firms compete globally, the vast majority have most of their sales in their home region. Of the top 500 firms for which regional sales data are available, 118 are from Europe, and they compete predominantly within the European region. On average, 62.8% of their sales are in their home region; only three are global, 8 are host-region oriented and 16 are bi-regional, while 86 are home-region based. To illustrate the four categories, we present case studies of 9 European multinationals — Carrefour, TotalFinaElf, Deutsche Bank, Nokia, Philips, GlaxoSmithKline, L’Oréal Paris, Diageo,and AstraZeneca. We analyze the geographical distribution of their operations and their current structure. We also show that management research is strongly focusedon the special cases of global and bi-regional firms, rather than on the large majority of home-region firms. This implies that managing in the new Europe needs tobe regional, not global.

Suggested Citation

  • Alan M. Rugman & Simon Collinson, 2005. "Multinational Enterprises in the New Europe: Are They Really Global?," Working Papers 2005-12, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    • Handle: RePEc:iuk:wpaper:2005-12
    as

    Download full text from publisher

    File URL: http://kelley.iu.edu/riharbau/RePEc/iuk/wpaper/bepp2005-12-rugman-collinson.pdf
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. John H. Dunning & Jeremy Clegg, 2011. "An Enlarged EU, Institutional Challenges and European Competitiveness," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 2, Edward Elgar Publishing.
    2. Curran, Louise & Zignago, Soledad, 2012. "EU enlargement and the evolution of European production networks," Research in International Business and Finance, Elsevier, vol. 26(2), pages 240-257.
    3. 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.
    4. 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.
    5. Wu, Jie & Pangarkar, Nitin & Wu, Zefu, 2016. "The moderating effect of technology and marketing know-how in the regional-global diversification link: Evidence from emerging market multinationals," International Business Review, Elsevier, vol. 25(6), pages 1273-1284.
    6. O'Hagan-Luff, Martha & Berrill, Jenny, 2016. "US firms – How global are they? A longitudinal study," International Review of Financial Analysis, Elsevier, vol. 44(C), pages 205-216.
    7. Chang Oh & Alan Rugman, 2007. "Regional multinationals and the Korean cosmetics industry," Asia Pacific Journal of Management, Springer, vol. 24(1), pages 27-42, March.
    8. 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.
    9. Simon Collinson & Alan Rugman, 2007. "The regional character of Asian multinational enterprises," Asia Pacific Journal of Management, Springer, vol. 24(4), pages 429-446, December.
    10. Hitt, Michael A. & Franklin, Victor & Zhu, Hong, 2006. "Culture, institutions and international strategy," Journal of International Management, Elsevier, vol. 12(2), pages 222-234, June.
    11. Amendolagine, Vito & Capolupo, Rosa & Ferri, Giovanni, 2014. "Innovativeness, offshoring and black economy decisions. Evidence from Italian manufacturing firms," International Business Review, Elsevier, vol. 23(6), pages 1153-1166.

    More about this item

    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:iuk:wpaper:2005-12. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Rick Harbaugh (email available below). General contact details of provider: https://edirc.repec.org/data/dpiubus.html .

    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.