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The current paper seeks to analyze to what degree theories from different fields of social science are able to explain the home‐region orientation of MNCs. This is necessary since there has been only a relatively narrow, economics‐oriented explanation for such an orientation.

The analysis is based on a thorough review of the literature that refers to a MNC's home‐region orientation and on different theories from the social sciences.

The paper shows that several theories from economics, psychology, and sociology are able to explain an MNC's home‐region orientation.

The paper contributes to the development of a more multi‐faceted explanation of why MNCs generally prefer a home‐region orientation. The paper derives propositions that are consistent with each theory. These propositions can be tested empirically in subsequent research studies.

The paper discusses a number of different theories and streams of research that can be used to conceptually explain and gain insight into the phenomenon of a home‐region orientation for MNCs

The aim of this paper is to shed light on recent debates in this journal on differences in home‐region orientation depending on type of company and the home region in which they are based.

The paper looks at the structure of trade (imports and exports) across different types of goods in order to shed light on differences between sectors and types of technology. The paper also explores structures across regions in order to shed light on regional differences.

This research indicates that there are major differences in structures of trade between different types of goods. However, these differences do not necessarily conform to a clear pattern across different technological levels and differ between regions and the direction of trade. The fact that Asian cultures have greater psychic distance from European and North American cultures is not reflected in higher levels of home‐region orientation.

The paper helps to clarify some of the hypotheses on home‐region orientation recently identified in this journal and, thus, helps to advance theories about why this orientation is so prevalent. The main limitations are related to the methodology. Using trade data, the paper cannot define the boundaries of the firm and, therefore, can only make conclusions at the macro level. These conclusions can, nevertheless, help to orient work at the micro level to further explore the key questions which recent work has raised.

Limited comparative work across sectors or technologies has been undertaken in the context of the debate on home‐region orientation. Differentiating between different types of goods can help to give us insights into why so many companies tend to focus so consistently on their home region, while others are more global.

The paper aims to motivate more rigorous theoretical and empirical specification of the home regionalization phenomenon, in particular the dynamics of shifting advantage over time within a multinational enterprise. It aims to improve dialogue among regionalization researchers.

Contrasting the economizing and behavioral perspectives on internationalization, the paper presents five different archetypes of the home‐regionalization phenomenon. These archetypes are predicated on strategic management stylizations of competitive advantage.

The paper demonstrates that the notion of home regionalization as a dominant and superior model for firm internationalization remains a promising yet under‐explained and inconsistently articulated thesis. By introducing and exploring the archetypes, it shows the diversity of home‐regionalization theses, and the prospect that multiple forms of regionalization may be at play for different firms, industries and locations.

The paper presents the full complement of archetypes of the home‐regionalization phenomenon and explores their corresponding assumptions. These explorations open up new empirical and theoretical research avenues for distinguishing any genuine region effects.

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.

The purpose of this paper is to examine the determinants of home-region strategy of the multinational subsidiary and the impact of such a strategy on its performance. The author draws upon new internalization theory to develop a theory-driven model and empirically tests the simultaneous relationships between home-region strategy and performance of the subsidiary.

The author tests the model using a simultaneous equation statistical technique on an original, new data set of publicly listed multinational subsidiaries operating in the ASEAN region, with parent firms’ headquarters across the broad triad.

There are three significant findings. The first finding is that subsidiary-level downstream knowledge (marketing advantages), and the geographic location of the subsidiary in the same home region as of the parent firm are key antecedents of a subsidiary’s home-region strategy. The second finding is that a subsidiary’s profitability reduces home-region orientation; however, home-region strategy has an insignificant effect on performance. The third finding is that these subsidiaries generate on average 92 per cent of their total sales in the home region (the Asia Pacific).

The author advances the existing literature on the regional nature of parent-level multinational enterprises by demonstrating that their quasi-autonomous subsidiaries also operate mainly on a home-region basis.

Building on the recent literature on regionalization, the purpose of this paper is to explore the home‐region orientation of Spanish new multinationals in the manufacturing sector and investigate the impact of the liability of foreignness (LOF) on Spanish firms.

The source of the empirical work is the Survey on Business Strategies from 2000 to 2008. The sample is fully representative of exporting Spanish manufacturing firms and collects more than 1,000 firms per year on average. The study defines and calculates the regionalization and multinationality ratios of home‐region oriented firms. Three moderating factors that affect the international behaviour of Spanish firms are introduced and analysed – the degree of foreign ownership, the level of advertising intensity and the level of research intensity.

The results demonstrate a strong home‐region orientation for Spanish exporting firms in manufacturing and that the three moderating factors are critical to their regional orientation and degree of multinationality. Furthermore, the results are linked to the LOF.

The paper sheds light on the regionalization topic, so far unexplored in the Spanish context. The original triad defined by Rugman is modified by dividing the world into three groups – the European Union, Latin America and the rest of the world – in order to fit Spanish interests. This paper contributes to understanding how firm specific advantages affect firms' behaviour and how they are related to the LOF.

This study aims to investigate the relationship between geographic diversification (GD) and export performance (EP) by analysing a sample of small exporters in an emerging market.

The study sample comprised 96 small and medium-sized exporting enterprises (SMEs) in Vietnam. The data is analysed using multiple regression analysis (MRA), Hayes' process model and fuzzy-set qualitative comparative analysis (fsQCA).

The results indicate that GD significantly negatively affects EP. In this dilemma, the export market orientation (EMO) and digital transformation positively moderated the relationship between GD and EP, such that the negative effect of GD on EP was weaker when EMO and digital were stronger.

This initial study contributes significantly to international business theories and practices, which reveal the role of GD via firm digital capacity and EMO in thriving SMEs’ EP. This study might grant new insight into international business and a critical approach to addressing the new insights small firms may face in a fragile but technologically advanced world.

The debate about global integration (standardisation) versus responsiveness (adaptation) has recently been supplemented with perspectives that emphasise regionalisation. And while the discussion has also been extended from manufacturing to services, there are specific sectors and emergent topics that have not yet received much attention. The purpose of this paper is to explore how accounting firms (The Big Four) and particularly their sustainability services fit in the globalisation/regionalisation/localisation spectrum, and appear to standardise or adapt in key countries in various regions around the world.

Examined are the Big Four accounting firms in general, and their sustainability services in 15 countries in five regions and globally, as presented on their respective web sites.

While overall the Big Four are somewhere between globalisation and bi‐regionalisation, the traditional independent member firm structure appears to prevail in service offerings, as sustainability services do not exhibit standardisation and there are hardly signs of regionalisation/globalisation. This seems to result from special characteristics of services, such as inseparability of production and consumption, and local requirements regarding sustainability.

This exploratory study can be a starting point for further in‐depth analyses into sustainability and/or services sector(s), and the way in which they figure in current realities of international business.

The paper gives insight into the variety of sustainability services around the world, as well as the way in which the accounting firms have dealt with global issues that also have local dimensions.

The paper sheds light on a topic in a sector so far unexplored in the globalisation/regionalisation debate, bringing new dimensions and perspectives to it.

This paper utilizes a new data base on the international activities of small, new ventures in Korea to examine the impact of internationalization on firm performance. Main findings are two‐fold: first, the degree of internationalization by new ventures is related to firm performance in a non‐linear fashion with four phases resulting in the new M‐shaped curve; and, second, the internationalization of the new ventures in the home region of the triad moderates positively the non‐linear M‐shaped relationship between the two as their degree of internationalization increases.