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The Regional Sales of Multinationals in the World Cosmetics Industry

Author

Listed:
  • Chang Hoon Oh

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

  • Alan M. Rugman

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

Abstract

This paper analyzes the regional characteristics and strategies of multinational enterprises (MNEs) in the world cosmetics and toiletries industry, based on the new work by Rugman on regional strategy. We test the proposition that MNEs may asymmetrically develop their upstream and downstream firm specific advantages (FSAs). We find that the upstream activities of the MNEs in cosmetics are home region based but that downstream activities are less so. Further, the asymmetry of FSAs in the world cosmetics industry is mainly due to the atypical Asian entry strategies of North American and West European cosmetics MNEs. Two case studies confirm how variations in FSAs can affect regional strategy.

Suggested Citation

  • Chang Hoon Oh & Alan M. Rugman, 2006. "The Regional Sales of Multinationals in the World Cosmetics Industry," Working Papers 2006-20, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    • Handle: RePEc:iuk:wpaper:2006-20
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    File URL: http://kelley.iu.edu/riharbau/RePEc/iuk/wpaper/bepp2006-20-oh-rugman.pdf
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    Cited by:

    1. 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.
    2. Lee, In Hyeock & Rugman, Alan M., 2012. "Firm-specific advantages, inward FDI origins, and performance of multinational enterprises," Journal of International Management, Elsevier, vol. 18(2), pages 132-146.
    3. Rugman, Alan M. & Oh, Chang Hoon, 2008. "Korea's multinationals in a regional world," Journal of World Business, Elsevier, vol. 43(1), pages 5-15, January.
    4. Elena Beleska-Spasova & Keith W. Glaister, 2010. "Geographic Orientation and Performance," Management International Review, Springer, vol. 50(5), pages 533-557, October.
    5. Md. Salamun Rashidin & Sara Javed & Lingming Chen & Wang Jian, 2020. "Assessing the Competitiveness of Chinese Multinational Enterprises Development: Evidence From Electronics Sector," SAGE Open, , vol. 10(1), pages 21582440198, January.
    6. Grigore Ana - Maria & Bagu Constantin & Radu Catalina & Catanet Alina, 2011. "Competitiveness And Performance On The Cosmetics Market," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 681-686, December.
    7. Pisani, Niccolò & Caldart, Adrián & Hopma, Jaël, 2017. "SMEs' formation of minority international joint ventures and level of internationalization: The moderating role of a global versus regional focus," European Management Journal, Elsevier, vol. 35(3), pages 414-424.

    More about this item

    Keywords

    regionalism; regional strategy; cosmetics industry; firm specific advantage; Avon; Gucci;
    All these keywords.

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