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Success Factors of Regional Strategies for Multinational Corporations: Exploring the Appropriate Degree of Regional Management Autonomy and Regional Product/Service Adaptation

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Abstract

This paper examines the factors that drive the success of multinational corporations (MNCs) in their pursuit of regional strategies. Based on contingency theory, we develop a comprehensive regional success factor model to investigate the effects of regional management autonomy and regional product/service adaptation on the regional success of MNCs. Using structural equation modelling, we also analyse the interaction effects of regional orientation and inter-regional distance. We evaluate our model by means of both primary and secondary data for Fortune Global 500 firms. Our findings show that appropriate degrees of regional management autonomy and regional product/service adaptation are highly contingent upon contextual influences on MNCs.

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  1. Faculty of Business, Economics and Social Sciences, University of Hamburg, Hamburg, Germany

    Dirk Ulrich Gilbert

  2. Institute of Economics, University of Erlangen-Nuremberg, Erlangen, Germany

    Patrick Heinecke

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Gilbert, D.U., Heinecke, P. Success Factors of Regional Strategies for Multinational Corporations: Exploring the Appropriate Degree of Regional Management Autonomy and Regional Product/Service Adaptation. Manag Int Rev 54, 615–651 (2014). https://doi.org/10.1007/s11575-014-0220-9

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