Title

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.

ISSN

1090-9516

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

84866145982

Indexed in Scopus

yes

Open Access

no

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