Strategic complexity and global expansion: An empirical study of newcomer Multinational Corporations from small economies
Document Type
Article
Source of Publication
Journal of World Business
Publication Date
10-1-2012
Abstract
The purpose of this paper is to analyse the determinants of global expansion strategies of newcomer Multinational Corporations (MNCs) by focusing on Iceland, Israel and Ireland. We argue that newcomer MNCs from small open economies pursue complex global expansion strategies (CGES). We distinguish four different types of global expansion strategies, namely, horizontal, vertical, lateral integration, and risk diversification. Building upon the traditions of Caves and Dunning and applying a multinomial logistic approach, we model CGES as a function of firm and country specific factors. The empirical evidence suggests that newcomer MNCs move away from simplistic dualities in the formulation of their strategic choices towards more complex options as a means of maintaining and enhancing their global competitiveness. © 2011 Elsevier Inc.
DOI Link
ISSN
Publisher
Elsevier BV
Volume
47
Issue
4
First Page
686
Last Page
695
Disciplines
Business
Keywords
Complex global expansion strategies, Iceland, Ireland, Israel, MNCs
Scopus ID
Recommended Citation
Oladottir, Asta Dis; Hobdari, Bersant; Papanastassiou, Marina; Pearce, Robert; and Sinani, Evis, "Strategic complexity and global expansion: An empirical study of newcomer Multinational Corporations from small economies" (2012). All Works. 3220.
https://zuscholars.zu.ac.ae/works/3220
Indexed in Scopus
yes
Open Access
no