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The most significant event for the School has been the announcement of the creation of the National Centre for Management Research and Development. The Centre is due to open in 1986 and will provide research facilities for up to 20 major projects designed to improve the competitiveness of Canadian business practices.

I am delighted to be here today to honor the work of Alan Rugman. Alain Verbeke (Calgary) and I will discuss Alan's contributions, with me focusing primarily on his contributions to the field of international business (IB); Alain, his contributions to international management (IM).

This research volume honours Alan M. Rugman, who is the L. Leslie Waters Chair in International Business (IB), Professor of Management and Professor of Business Economics and Public Policy at the Kelley School of Business, Indiana University. The work contains a set of essays developed to celebrate the Academy of Management's (AoM) recognition of Professor Rugman as the ‘Booz Allen Hamilton Strategy and Business Eminent Scholar in International Management’ at the AoM 2004 Annual Meeting in New Orleans, Louisiana. Booz Allen Hamilton established this award to recognize eminent scholars whose research and writing have contributed significantly to international management scholarship and whose work has had an effect on the practice of international management. This great honour was not the only one Professor Rugman received in 2004. The European International Business Academy (EIBA) organized a special panel honouring Professor Rugman's 25-year old landmark study on international diversification and the multinational enterprise (MNE) at its 2004 Annual Meeting in Ljubljana, Slovenia. The 10 chapters included in this volume were presented at one of these events or written as a direct result thereof.

In evaluating Alan Rugman's work on MNE environmental strategies, the subject of this chapter, it is too tempting not to start with a 2×2 matrix. Fig. 1 is meant to roughly indicate four different types of work that might characterise an academic's research portfolio. Obviously, all the well-known caveats of such a scheme apply, and perhaps more than usual. However, the main purpose is, by way of introduction, to situate Alan's output on environmental issues and the MNE, compared and related to other topics. While the horizontal axis of Fig. 1 refers to a regular division into theoretical and empirical work, the vertical axis differentiates main foci of research from other, more sideline, areas. Applied to Alan Rugman's research portfolio, the latter category characterises his work on environmental strategies of MNEs best, particularly quadrant 2, although some of it (generally more exploratory work) can be placed in quadrant 4 as well.

I think it would be fair to say that explaining the geography of multinational enterprise (MNE) activity has never been a major part of Alan Rugman's scholarly research and writings. Nevertheless, over the last 25 years, he has provided us with several useful nuggets of understanding and empirical evidence about the territorial expansion of firms, and its impact on their global competitiveness.

Alan Rugman, in the course of his professional career, has not shied away from controversy, whether the issues were international diversification versus internationalization, internalization versus use of the external market, double diamonds versus single diamonds or global multinational enterprises (MNEs) versus regional MNEs. Whatever was the bone of contention, he has formulated strong hypotheses and then engaged in empirical work to provide evidence for his position. He has taken the issues to a wide audience – scholarly, government and business. To each group he has hammered the ideas home until he was associated with a position on the issues. In fact, Alan seems to have relished being in the middle of storms of controversy as he beat the drums furiously for what he saw as right regardless of whether he offended others taking an opposite view. The result has been that he has had a huge impact on the field of international strategic management and an influence on government policy and business activity.

A large and robust empirical literature demonstrates that there is a strong relationship between the performance of a multinational enterprise (MNE) and its degree of multinationality. We develop a new metric to capture the return on foreign assets (ROFA), which we use as an alternative metric to return on total assets (ROTA) as a dependent variable representing performance. We find a significant S‐shaped relation between ROFA and the degree of multinationality across a large set of UK firms.