Chapter 7 Intra-Regional Sales and Performance of Multinational Enterprises

Abstract

This chapter is an extension of a recent work that has examined the intra-regional sales of large multinational enterprises (MNEs). First, we examine the interaction between the performance of MNEs and four proxies for their firm-specific advantages (FSAs). This includes: firm size, knowledge (as represented by research and development (R&D)), marketing ability, and industry type. We find that FSAs in R&D and service sector type are best exploited within the home region. In contrast, the FSA firm size is better exploited by global and bi-regional firms. Second, we find that a service MNE tends to be more home-region oriented and has a higher proportion of intra-regional sales than a manufacturing firm.

Citation

Rugman, A.M. and Sukpanich, N. (2006), "Chapter 7 Intra-Regional Sales and Performance of Multinational Enterprises", Fratianni, M. (Ed.) Regional Economic Integration (Research in Global Strategic Management, Vol. 12), Emerald Group Publishing Limited, Leeds, pp. 131-150. https://doi.org/10.1016/S1064-4857(06)12007-0