Home Region Focus and Technical Efficiency of Multinational Enterprise: The Moderating Role of Regional Integration

Management International Review

Volumn 52, Issue 4, 2012, Pages 493-518

  Banalieva, Elitsa R ^a   Santoro, Michael D ^b   Jiang, Joy Ruihua ^c  

^a NORTHEASTERN UNIVERSITY   (United States)

^b LEHIGH UNIVERSITY   (United States)

^c OAKLAND UNIVERSITY   (United States)

Author keywords

Home region focus; Regional economic integration; Regional policy integration; Technical efficiency; Transaction cost economics; Triad multinationals

Indexed keywords

EID: 84870296244     PISSN: 09388249     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11575-011-0127-7     Document Type: Article

References (91)

1. ADB. (2002). Preferential trade agreements in Asia and the Pacific. Asian Development Outlook.
2. Aigner, D. J., Lovell, C. A. K., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics, 6(1), 21-37.
3. Alcacer, J., & Chung, W. (2007). Location strategies and knowledge spillovers. Management Science, 53(5), 760-776.
4. Andriamananjara, S. (1999). On the size and number of regional integration arrangement: A political economy model; World Bank Policy Research Working Paper No. 2117.
5. Anson, J., Cadot, O., Estevadeordal, A., De Melo, J., Suwa-Eisenmann, A., & Tumurchudur, B. (2005). Rules of origin in North-South preferential trading arrangements with an application to NAFTA. Review of International Economics, 13(3), 501-517.
6. Ayed-Mouelhi, R. B., & Goaied, M. (2003). Efficiency measure from dynamic stochastic production frontier: Application to Tunisian textile, clothing, and leather industries. Econometric Reviews, 22(1), 93-111.
7. Balassa, B. (1961). The theory of economic integration. London: Allen & Unwin.
8. Banalieva, E., & Santoro, M. (2009). Local, regional, or global: Geographic orientation and relative financial performance of emerging market multinational enterprises. European Management Journal, 27(5), 344-355.
9. Battese, G. E., & Coelli, T. J. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics, 20(1/2), 325-332.
10. Bhagwati, J. (2002). Free trade today. Princeton: Princeton University Press.
11. Bhandari, A. K., & Maiti, P. (2007). Efficiency of Indian manufacturing firms: Textile industry as a case study. International Journal of Business and Economics, 6(1), 71-88.
12. Blomström, M., & Kokko, A. (1997). Regional Integration and Foreign Direct Investment. NBER Working Paper 6019.
13. Brahm, R. (1995). National targeting policies, high technology industries, and excessive competition. Strategic Management Journal, 16(summer), 71-91.
14. Chakrabarti, A., Singh, K., & Mahmood, I. (2007). Diversification and performance: Evidence of East Asian firms. Strategic Management Journal, 28(2), 101-120.
15. Chau, G. K., & Gray, S. J. (2002). Ownership structure and corporate voluntary disclosure in Hong Kong and Singapore. The International Journal of Accounting, 37(2), 247-265.
16. Chen, M. X. (2009). Regional economic integration and geographic concentration of multinational firms. European Economic Review, 53(3), 355-375.
17. Chen, S. (2007). Testing regional effects in the internationalization-performance relationship in Asian service firms, regional aspects of multinationality and performance. Research in Global Strategic Management, 13, 337-358.
18. Contractor, F. J., Kundu, S. K., & 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.
19. Cuervo-Cazurra, A., & Un, C. A. (2007). Regional economic integration and R& D investment. Research Policy, 36(2), 227-246.
20. Delios, A., & Beamish, P. W. (2005). Regional and global strategies of Japanese firms. Management International Review, 45(1), 19-36.
21. Deng, Y. (1998). Issues and policies: Headless dragons: The problem of leadership in APEC. The Fletcher Forum of World Affairs, 22(65).
22. Depoers, F. A. (2000). Cost benefit study of voluntary disclosure: Some empirical evidence from French listed companies. European Accounting Review, 9(2), 245-263.
23. DiMaggio, P., & Powell, W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147-160.
24. Dunning, J. (1988). The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(3), 1-31.
25. Dunning, J. H., & Robson, P. (1987). Multinational corporate integration and regional economic integration. Journal of Common Market Studies, 26(2), 103-125.
26. Dutta, S., Narasimhan, O., & Rajiv, S. (2005). Conceptualizing and measuring capabilities: Methodology and empirical application. Strategic Management Journal, 26(3), 277-285.
27. Elango, B. (2004). Geographic scope of operations by multinational companies: An exploratory study of regional and global strategies. European Management Journal, 22(4), 431-441.
28. Elango, B., & Pattnaik, C. (2007). Building capabilities for international operations through networks: A study of Indian firms. Journal of International Business Studies, 38(4), 541-555.
29. Ethier, W. (1982). National and international returns to scale in the modern theory of international trade. American Economic Review, 72(3), 950-59.
30. Fama, E., & French, K. (1992). The cross-section of expected stock returns. Journal of Finance, 47(2), 427-465.
31. Frankel, J. A., Stein, E., & Wei, S. (1997). Regional trading blocs in the world economic system. Washington: Institute for International Economics.
32. Fratianni, M., & Oh, C. (2009). Expanding RTAs, trade flows, and the multinational enterprise. Journal of International Business Studies, 40(7), 1206-1227.
33. Fried, H. O., Lovell, C. K., & Schmidt, S. S. (2008). Efficiency and productivity. In H. Fried, C. A. K. Lovell, & S. Schmidt (Eds.), The measurement of productive efficiency and productivity change (pp. 3-91). New York: Oxford University Press.
34. Gedajlovic, E., & Carney, M. (2010). Markets, hierarchies and families: Toward a transaction cost theory of the family firm. Entrepreneurship Theory & Practice, 34(6), 1145-1171.
35. Ghemawat, P. (2003). Semi-globalization and International business strategy. Journal of International Business Studies, 34(2), 138-152.
36. Gimeno, J., Hoskisson, R. E., Beal, B. D., & Wan, W. P. (2005). Explaining the clustering of international expansion moves: A critical test in the U. S. telecommunications industry. Academy of Management Journal, 48(2), 297-319.
37. Gomes, L., & Ramaswamy, K. (1999). An empirical examination of the form of the relationship between multinationality and performance. Journal of International Business Studies, 30(1), 173-187.
38. Grosse, R. E. (1983) The andean foreign investment code's impact on multinational enterprises. Journal of International Business Studies, 14(3), 121-133.
39. Hannan, M. T., & Freeman, J. (1989)Organizational Ecology. Cambridge: Harvard University Press.
40. Haveman, H. A. (1993). Follow the leader: Mimetic isomorphism and entry into new markets. Administrative Science Quarterly, 38(4), 593-627.
41. Hejazi, W. (2005). Are regional concentrations of OECD exports and outward FDI consistent with gravity?Atlantic Economic Journal, 33(4), 423-436.
42. Hejazi, W. (2007). Reconsidering the concentration of U. S. MNE activity: Is it global, regional, or national?Management International Review, 47(1), 5-27.
43. Helpman, E., & Krugman, P. (1989). Trade policy and market structure. Cambridge: MIT Press.
44. Heshmati, A., & Kumbhakar, S. C. (1994). Farm heterogeneity and technical efficiency: Some results from Swedish dairy farms. The Journal of Productivity Analysis, 5(1), 45-61.
45. Hitt, M., Hoskisson, R., & Kim, H. (1997). International diversification: Effects on innovation and firm performance in product-diversified firms. Academy of Management Journal, 40(4), 767-798.
46. Hitt, M. A., Bierman, L., Uhlenbruck, K., & Shimizu, K. (2006). The importance of resources in the internationalization of professional service firms: The good, the bad, and the ugly. Academy of Management Journal, 49(6), 1137-1157.
47. Holden, M. (2003). Stages of economic integration: From autarky to economic union. http://dsp-psd. pwgsc. gc. ca/Collection-R/LoPBdP/inbrief/prb0249-e. htm. Accessed 28 June 2010.
48. Iapadre, L. (2006). Regional integration agreements and the geography of world trade, statistical indicators and empirical evidence. In P. De Lombaerde (Ed.), Assessment and Measurement of Regional Integration (pp. 65-85). London: Routledge.
49. Karpik, P., & Belkaoui, A. (1989). The relative relationship between systematic risk and value added variables. Journal of International Financial Management and Accounting, 1(3), 259-276.
50. Kindleberger, C. P. (1966). European integration and the international corporation. Columbia Journal of World Business, 1(1), 65-73.
51. Koopmans, T. C. (1951). An analysis of production as an efficient combination of activities. In T. C. Koopmans (Ed.), Activities Analysis of Production and Allocation (pp. 33-97). New York: Wiley.
52. Kotabe, M., Srinivasan, S. S., & Aulakh, P. S. (2002). Multinationality and firm performance: The moderating role of R& D and marketing capabilities. Journal of International Business Studies, 33(1), 79-97.
53. Krueger, A. O. (1993). Free trade agreements as protectionist devices: Rules of origin. NBER Working Paper Series #4352.
54. La Porta, R., Lopez-De-Silanes, F., Shleifer, A., & Vishny, R. (2002). Investor protection and corporate valuation. The Journal of Finance, 57(3), 1147-1170.
55. Lee, I.-H., & Marvel, M. R. (2009). The moderating effects of home region orientation on R& D investment and international SME performance: Lessons from Korea. European Management Journal, 27(5), 316-326.
56. Lester, R. H., & Cannella, A. A. (2006). Inter-organizational familiness: How family firms use interlocking directorates to build community-level social capital. Entrepreneurship Theory & Practice, 30(6), 755-775.
57. Li, L. (2005). Is regional strategy more effective than global strategy in the U. S. service industries?Management International Review, 45(Special Issue 1), 37-57.
58. Li, L. (2008). Multinationality and technical efficiency: A neglected perspective. Management International Review, 48(1), 39-63.
59. McKinnon, J. L., & Dalimunthe, L. (1993, May). Voluntary disclosure of segment information by Australian diversified companies. Accounting and Finance, 33(1), 33-50.
60. Miller, S. R., & Parkhe, A. (2002). Is there a liability of foreignness in global banking? An empirical test of banks' X-efficiency. Strategic Management Journal, 23(1), 55-75.
61. Mold, A. (2003). The impact of the single-market programme on the locational determinants of U. S. manufacturing affiliates: An econometric analysis. Journal of Common Market Studies, 41(1), 37-62.
62. Nye, J. S. (1968). Comparative regional integration: Concept and measurement. International Organization, 22(4), 855-880.
63. Park, S.-H., & Lee, J.-Y. (2009). APEC at a cross-roads: Challenges and opportunities. Asian Perspective, 33(2), 97-124.
64. Porter, M. E. (1990). The competitive advantage of nations. New York: Free Press.
65. Putnam, R. D., Leonardi, R., & Nanetti, R. (1993). Making democracy work: Civic tradition in modern Italy. Princeton: Princeton University Press.
66. Qian, G., Khoury, T., Peng, M. W., & Qian, Z. (2010). The performance implications of intra-and inter-regional geographic diversification. Strategic Management Journal, 31(9), 1018-1030.
67. Rangan, S. (2000). Search and deliberation in international exchange: Microfoundations to some macro patterns. Journal of International Business Studies, 31(2), 205-222.
68. Rangan, S., & Sengul, M. (2009). The influence of macro structure on the foreign market performance of transnational firms: The value of IGO connections, export dependence, and immigration links. Administrative Science Quarterly, 54(2), 229-267.
69. Rindfleisch, A., & Heide, J. B. (1997). Transaction cost analysis: Past, present, and future applications. Journal of Marketing, 61(4), 30-54.
70. Robson, P. (1993). The new regionalism and developing countries. Journal of Common Market Studies, 31(3), 329-348.
71. Romanelli, E., & Khessina, O. M. (2005). Regional industrial identity: Cluster configurations and economic development. Organization Science, 16(4), 344-358.
72. Rosenthal, S. S., & Strange, W. C. (2003). Geography, industrial organization, and agglomeration. Review of Economic Statistics, 85(2), 377-393.
73. Rugman, A. M., & Verbeke, A. (2004). A perspective on regional and global strategies of multinational enterprises. Journal of International Business Studies, 35(1), 3-19.
74. Rugman, A. M., & Verbeke, A. (2005). Towards a theory of regional multinationals: A transaction cost economics approach. Management International Review, 45(Special Issue 1), 5-17.
75. Rugman, A. M., & Verbeke, A. (2008). The theory and practice of regional strategy: A Response to Osegowitsch and Sammartino. Journal of International Business Studies, 39(2), 326-332.
76. Ruigrok, W., Amann, W., & Wagner, H. (2007). The internationalization-performance relationship at swiss firms: A test of the s-shape and extreme degrees of internationalization. Management International Review, 47(3), 349-368.
77. Schiff, M., & Winters, A. (2003). Regional Integration and Development. Washington: Oxford University Press.
78. Shil, N. C. (2009). Performance measures: An application of value added. International Journal of Business and Management, 4(3), 169-177.
79. Tallman, S., & Li, J. (1996). Effects of international diversity and product diversity on the performance of multinational firms. Academy of Management Journal, 39(1), 179-196.
80. Testas, A. (1998). The significance of trade integration among developing countries: A comparison between ASEAN and AMU. Journal of Economic Development, 23(1), 117-130.
81. Tironi, E. (1982). Customs union theory in the presence of foreign firms. Oxford Economic Papers, 34(1), 150-171.
82. UNU-CRIS. (2008). Regional integration knowledge system (RIKS). http://www. cris. unu. edu/.
83. Venkatraman, N., & Prescott, J. E. (1990). Environment-strategy coalignment: An empirical test of its performance implications. Strategic Management Journal, 11, 1-23.
84. Verbeke, A., & Greidanus, N. (2009). The end of the opportunism vs trust debate: Bounded reliability as a new envelope concept in research on MNE governance. Journal of International Business Studies, 40(9), 1471-1495.
85. Vorhies, D. W., Morgan, R. E., & Autry, C. W. (2009). Product market strategy and the marketing capabilities of the firm: Impact on market effectiveness and cash flow performance. Strategic Management Journal, 30(12), 1310-1334.
86. Walsh, J. (1996). Multinational management strategy and human resource decision making in the single European market. Journal of Management Studies, 33(5), 633-648.
87. Williamson, O. (1985). The Economic Institutions of Capitalism. New York: The Free Press.
88. Wonnacott, R. (1996). Free trade agreements: For better or worse?American Economic Review, 86(2), 62-66.
89. World Trade Organization, World Trade Report. (2003). Geneva: WTO Publications.
90. World Trade Organization, List of All RTAs. http://rtais. wto. org/UI/PublicAllRTAList. aspx. Accessed 28 June 2010.
91. Zaheer, S. (1995). Overcoming the Liability of Foreignness. Academy of Management Journal, 38(2), 341-363.