Management Theories & Philosophies

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GLOBAL vs. REGIONAL GEOGRAPHIC DIVERSIFICATION

Being regional is also as important in the diversification of global strategy. In its place of spotlighting on the various locations of sales and subsidiaries in addressing the problem of multiple nationality, more global researchers are getting acquainted with the terms of being ethnocentric, geocentric and polycentric by turning looking internally and analyzing the features of the firm that will it to being multinational.

In addition, one of the main reasons global operations continue to arrange themselves properly within the region is due to the fact that running a network internally across different locations within cultural and institutional distance remains significant. In supporting this view, a generic study on the regional diversification and organization performance recommends that organizations that are regionally more edgy and focused are most likely to increase their performance (Qian, 2001). But regions that are mostly defined by politics will give rise to a unique and exceptional explanation in realizing the geographical model of diversification of the MNE’s.

CONCLUSION

The increase in the innovation view can be explained further as the development of the global strategy field that needs to encapsulate the ideas that innovation matters a lot. Also, in view of global strategy as a debate the general view of the institution as explained by Peng(2006) leads overall in all viewpoints while the other areas are more concerned with the resources and global industry.

REFERENCE

Business today (2010) Available at: http://www.economywatch.com/business/global-business-strategy.html

Chesbrough, H., Ahern, S., Finn, M. and Guerraz, S. (2006). Business models for technology in the developing world: The role of non-governmental organizations. California Management Review, 48, 48-6

Cole, G and Kelly, P. Management Theory and Practice, 8th Edition, 2016, Cengage Learning EMEA Available at: https://bookshelf.vitalsource.com.Accessed:06/03/2017

Peng, M.W. (2006). Global Strategy. Cincinnati: South-Western Thomson.

Peng, M. W., & Pleggenkuhle-Miles, E. G. (2009). Current debates in global strategy| International Journal of Management Reviews, 11(1), 51-68

Qian, G. (2001). Does culture affect behavior and performance of firms? Journal of International Business Studies, 32, 115-131.

Tihanyi, L., Griffith, D.A. and Russell, C.J. (2005) The effect of cultural distance on entry mode choice, international diversification, and MNE performance: A meta-analysis. Journal of International Business Studies, 36, 270-283

Wang, C. L., & Ahmed, P. K. (2004). The development and validation of the organizational innovativeness construct using confirmatory factor analysis. European Journal of Innovation Management, 7(4), 303-31

Witt, P. (2004). The competition of international corporate governance systems. Management International Review, 44, 309-33

Xu, D and Shenkar, O. (2002). Institutional distance and the multinational enterprise Academy of Management Review, 27, 608-618

Yip, G (2003), Total Global Strategy|| Upper Saddle River New Jersey, Prentice Hall

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