Regionalization strategy and performance: the moderating role of industry dynamism and top management team diversity

Ruigrok, W., Georgakakis, D. and Greve, P. ORCID: https://orcid.org/0000-0002-2936-4399 (2013) Regionalization strategy and performance: the moderating role of industry dynamism and top management team diversity. Multinational Business Review, 21 (1). pp. 6-24. ISSN 1525-383X doi: 10.1108/15253831311309465

Abstract/Summary

Purpose– This paper contributes to the debate about the performance implications of adopting a regional as opposed to a global strategic posture. The aim of this paper is to argue that the performance effects of a regionalization strategy vary based on the characteristics of the industry in which the MNE operates and the composition of its top management team (TMT). Design/methodology/approach– This analysis is based on a cross‐sectional dataset of 211 large European MNEs headquartered in four Western European economies at the end of 2005. Findings– Results show that firms adopting a regional orientation outperform MNEs with global strategic positioning. This positive relationship is less pronounced under conditions of industry dynamism and inter‐regional TMT diversity. Originality/value– The study contributes to our understanding of whether and under what conditions MNEs benefit from adopting a regional as opposed to a global strategic posture.