Local, Regional or Global: Geographic Orientation and Relative Financial Performance of Emerging Market Multinational Enterprises

European Management Journal, Vol. 2, No. 5, pp. 344-355. Forthcoming

Posted: 31 May 2009 Last revised: 3 Dec 2012

See all articles by Elitsa R. Banalieva

Elitsa R. Banalieva

Northeastern University; Northeastern University - International Business & Strategy

Michael D. Santoro

Lehigh University - Department of Management

Date Written: May 28, 2009

Abstract

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 orientations - local, regional, and global - and test our framework with the market penetration strategies (sales) of 701 MNEs from 28 EMs during 2000-2006. 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.

Keywords: geographic orientations, regional/global strategies, performance, emerging markets, multinationals

JEL Classification: F23

Suggested Citation

Banalieva, Elitsa R. and Santoro, Michael D., Local, Regional or Global: Geographic Orientation and Relative Financial Performance of Emerging Market Multinational Enterprises (May 28, 2009). European Management Journal, Vol. 2, No. 5, pp. 344-355. Forthcoming. Available at SSRN: https://ssrn.com/abstract=1412144

Elitsa R. Banalieva (Contact Author)

Northeastern University ( email )

360 Huntington Ave
315 C Hayden Hall
Boston, MA 02115
United States

Northeastern University - International Business & Strategy ( email )

Boston, MA 02115
United States

Michael D. Santoro

Lehigh University - Department of Management ( email )

Bethlehem, PA 18015
United States

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