Advertisement

Journal of International Business Studies

, Volume 38, Issue 1, pp 200–205 | Cite as

Liabilities of regional foreignness and the use of firm-level versus country-level data: a response to Dunning et al. (2007)

  • Alan M Rugman
  • Alain Verbeke
Commentary

Abstract

We are pleased that Dunning et al. have provided macro (country) level data demonstrating the increased internationalization of many nations over the past decade. We also appreciate their findings lending support to our perspective on the regional nature of world business. Our work was based solely on micro (firm) level data. Both country-level data and firm-level data have methodological problems, which we attempt to reconcile in this commentary. We also address the broader conceptual issues of how to interpret country-level vs firm-level data.

Keywords

regional strategy home region bound firm-specific advantages liability of regional foreignness methodology 

Notes

References

  1. Birkinshaw, J.M. (2000) Entrepreneurship in the Global Firm, Sage Publications: London.Google Scholar
  2. Buckley, P. and Casson, M. (1976) The Future of the Multinational Enterprise, Macmillan: London.CrossRefGoogle Scholar
  3. Contractor, F.J., Kundu, S.K. and Hsu, C.C. (2003) ‘A three-stage theory of international expansion: the link between multinationality and performance in the service sector’, Journal of International Business Studies 34 (1): 5–18.CrossRefGoogle Scholar
  4. Dunning, J. (1981) International Production and Multinational Enterprise, Allen & Unwin: London.Google Scholar
  5. Dunning, J., Fujita, M. and Yakova, N. (2007) ‘Some macro data on the regionalisation/globalisation debate’, Journal of International Business Studies 38 (1), doi:10.1057/palgrave.jibs.8400241.Google Scholar
  6. Geringer, J., Beamish, P. and daCosta, R. (1989) ‘Diversification strategy and internalization: implications for MNE performance’, Strategic Management Journal 10 (2): 109–121.CrossRefGoogle Scholar
  7. Ghemawat, P. (2001) ‘Distance still matters: the hard reality of global expansion’, Harvard Business Review 79 (8): 137–147.Google Scholar
  8. Ghemawat, P. (2005) ‘Regional strategies for global leadership’, Harvard Business Review 83 (12): 98–108.Google Scholar
  9. Hennart, J.F. (2007) ‘The theoretical rationale for a multinationality/performance relationship’, Management International Review, (forthcoming).Google Scholar
  10. Lu, J.W. and Beamish, P.W. (2004) ‘International diversification and firm performance: the S-curve hypothesis’, Academy of Management Journal 47 (4): 598–609.CrossRefGoogle Scholar
  11. Ronen, S. and Shenkar, O. (1985) ‘Clustering countries on attitudinal dimensions: a review and synthesis’, Academy of Management Review 10 (3): 435–454.Google Scholar
  12. Rugman, A.M. (1981) Inside the Multinationals, Columbia University Press: New York.Google Scholar
  13. Rugman, A.M. and Verbeke, A. (1992a) ‘Multinational enterprises and national economic policy’, in P.J. Buckley and M. Casson (eds.) Multinational Enterprises in the World Economy, Aldershot, Edward Elgar, pp: 160–170.Google Scholar
  14. Rugman, A.M. and Verbeke, A. (1992b) ‘A note on the transnational solution and the transaction cost theory of multinational strategic management’, Journal of International Business Studies 23 (4): 761–772.CrossRefGoogle Scholar
  15. Rugman, A.M. and Verbeke, A. (2001) ‘Subsidiary-specific advantages in multinational enterprises’, Strategic Management Journal 22 (3): 237–250.CrossRefGoogle Scholar
  16. Rugman, A.M. and Verbeke, A. (2003) ‘Extending the theory of the multinational enterprise: internalization and strategic management perspectives’, Journal of International Business Studies 34 (2): 125–137.CrossRefGoogle Scholar
  17. Rugman, A.M. and Verbeke, A. (2004a) ‘A perspective on regional and global strategies of multinational enterprises’, Journal of International Business Studies 35 (1): 3–19.CrossRefGoogle Scholar
  18. Rugman, A.M. and Verbeke, A. (2004b) ‘Regional transnationals and triad strategy’, Transnational Corporations 13 (3): 1–20.Google Scholar
  19. Rugman, A.M. and Verbeke, A. (2005a) Analysis of Multinational Strategic Management: The Selected Scientific Papers of Alan M. Rugman and Alain Verbeke, Edward Elgar: Cheltenham, UK and Brookfield, US.Google Scholar
  20. Rugman, A.M. and Verbeke, A. (2005b) ‘Regional multinationals: the new research agenda’, in P.J. Buckley (ed.) What is International Business?, Palgrave Macmillan: New York, pp: 110–132.Google Scholar
  21. Rugman, A.M. and Verbeke, A. (2005c) ‘Towards a theory of regional multinationals: a transaction cost economics approach’, Management International Review 45 (SI 1): 5–17.Google Scholar
  22. Sullivan, D. (1994) ‘Measuring the degree of internationalisation of a firm’, Journal of International Business Studies 25 (2): 325–342.CrossRefGoogle Scholar
  23. Yip, G., Rugman, A.M. and Kudina, A. (2007) ‘International success of british companies’, Long Range Planning 40 (2), forthcoming.Google Scholar

Copyright information

© Academy of International Business 2006

Authors and Affiliations

  1. 1.Kelley School of Business, Indiana UniversityBloomingtonUSA
  2. 2.Haskayne School of Business, University of CalgaryCanada

Personalised recommendations