Quotation Ram, Mudambi, Puck, Jonas. 2016. A global value chain analysis of the 'regional strategy' perspective. Journal of Management Studies (JMS) 53 (6), 1076-1093.




In this counterpoint paper we argue that the findings presented by the ‘regional strategy’ literature do not capture the full array of global activities of the multinational enterprise (MNE). While this literature makes an important contribution to the field by showing that sales and production activities in the MNE are regionally structured, we argue that this assessment is biased for two reasons. First, this approach overly focuses on geographical location of downstream activities, while disregarding that of knowledge creation and other relevant upstream activities in the MNE. Second, the approach associates the firm's value creation only with its internalized activities and does not capture the value created through any activities that are externalized. Many MNEs rely to a significant extent on value creation outside the firm's legal boundaries. We argue that such omissions are likely to lead to biased interpretations using different theoretical lenses, such as the knowledge-/resource-based view, internalization theory and more general transaction cost economics. Based on our reasoning, we provide recommendations for future research both within and beyond the ‘regional strategy’ literature.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Management Studies (JMS)
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, INF-A, MAN-A+, STRAT-A, WH-A
Language English
Title A global value chain analysis of the 'regional strategy' perspective
Volume 53
Number 6
Year 2016
Page from 1076
Page to 1093
Reviewed? Y
URL http://onlinelibrary.wiley.com/doi/10.1111/joms.12189/abstract
DOI http://dx.doi.org/10.1111/joms.12189


Puck, Jonas (Details)
Ram, Mudambi (Fox School of Business, Temple University, United States/USA)
Institute for International Business (Puck) (Details)
Department of Global Business and Trade DP (Details)
Competence Center for Emerging Markets and CEE WE (Details)
Institute for International Business IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
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