Local, regional, or global? Geographic orientation and relative financial performance or emerging market multinational enterprises
By: BANALIEVA, Elitsa R
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Contributor(s): SANTORO, Michael D.
Material type: 
ArticlePublisher: Oxford : Elsevier, October 2009European Management Journal 27, 5, p. 344-355Abstract: We extend the regional/global strategies literature by analyzing the relative performance of emerging market (EM) multinational enterprises (MNEs) based on their geographic orientation. We develop a framework showing that firms adopt three geographic orientationslocal, regional, and globaland test our framework with the market penetration strategies (sales) of 701 MNEs from 28 EMs during 20002006. Our analysis shows that distinguishing among these three geographic segments is important, as not all of these geographic segments enhance firms financial performance relative to their industry: a combination of local and global orientations enhances while regional orientation reduces the relative financial performance of EM MNEs.
We extend the regional/global strategies literature by analyzing the relative performance of emerging market (EM) multinational enterprises (MNEs) based on their geographic orientation. We develop a framework showing that firms adopt three geographic orientationslocal, regional, and globaland test our framework with the market penetration strategies (sales) of 701 MNEs from 28 EMs during 20002006. Our analysis shows that distinguishing among these three geographic segments is important, as not all of these geographic segments enhance firms financial performance relative to their industry: a combination of local and global orientations enhances while regional orientation reduces the relative financial performance of EM MNEs.
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