Geographic Scope: The Impact of Location on MNC Performance
The decision of where to locate productive assets is a central element of an organization’s international strategy and, therefore, the concept of geographic scope is of great interest to both managers responsible for the strategic guidance of their multinational firms as well as to international business scholars. While a great deal is known about the processes and outcomes of international expansion, prior research has reported mixed findings on the relationship between geographic scope, hereinafter defined as the range of countries in which the firm has direct investments, and firm performance. Following Dunning’s (1998) suggestion that greater attention should be paid to the impact of location on the MNC, this chapter re-examines the concept of geographic scope to determine its effect of MNC performance.
KeywordsEconomic Performance Geographic Scope Foreign Subsidiary Transaction Cost Theory Standardize Regression Weight
Unable to display preview. Download preview PDF.