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The Born Global Illusion and the Regional Nature of International Business

The Future of Foreign Direct Investment and the Multinational Enterprise

ISBN: 978-0-85724-555-7, eISBN: 978-0-85724-556-4

Publication date: 3 May 2011

Abstract

The regional nature of MNEs has become a key aspect of international business thinking, since Rugman demonstrated empirically that MNEs are mainly home-region oriented and studied the impact that the regional phenomenon has on firm performance. The extant international business literature on small- and medium-sized firms of interest to Aharoni is also evolving with the consideration of new aspects such as the “born global illusion,” and the necessary balance between firm-specific advantages (FSAs) and the liability of foreignness (LOF) when going abroad. This chapter presents new insights on these topics by examining the regionalization of Spanish manufacturing firms, their export sales orientation and their FDI orientation. Finally, we study the impact of FSAs on the intraregional and foreign sales of Spanish companies.

Keywords

Citation

Rugman, A.M. and Almodóvar, P. (2011), "The Born Global Illusion and the Regional Nature of International Business", Ramamurti, R. and Hashai, N. (Ed.) The Future of Foreign Direct Investment and the Multinational Enterprise (Research in Global Strategic Management, Vol. 15), Emerald Group Publishing Limited, Leeds, pp. 251-269. https://doi.org/10.1108/S1064-4857(2011)0000015015

Publisher

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Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited