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The home‐region orientation of Spanish exporting firms

The home‐region orientation of Spanish exporting firms Purpose – Building on the recent literature on regionalization, the purpose of this paper is to explore the home‐region orientation of Spanish new multinationals in the manufacturing sector and investigate the impact of the liability of foreignness (LOF) on Spanish firms. Design/methodology/approach – The source of the empirical work is the Survey on Business Strategies from 2000 to 2008. The sample is fully representative of exporting Spanish manufacturing firms and collects more than 1,000 firms per year on average. The study defines and calculates the regionalization and multinationality ratios of home‐region oriented firms. Three moderating factors that affect the international behaviour of Spanish firms are introduced and analysed – the degree of foreign ownership, the level of advertising intensity and the level of research intensity. Findings – The results demonstrate a strong home‐region orientation for Spanish exporting firms in manufacturing and that the three moderating factors are critical to their regional orientation and degree of multinationality. Furthermore, the results are linked to the LOF. Originality/value – The paper sheds light on the regionalization topic, so far unexplored in the Spanish context. The original triad defined by Rugman is modified by dividing the world into three groups – the European Union, Latin America and the rest of the world – in order to fit Spanish interests. This paper contributes to understanding how firm specific advantages affect firms' behaviour and how they are related to the LOF. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Multinational Business Review Emerald Publishing

The home‐region orientation of Spanish exporting firms

Multinational Business Review , Volume 19 (3): 16 – Aug 19, 2011

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1525-383X
DOI
10.1108/15253831111172649
Publisher site
See Article on Publisher Site

Abstract

Purpose – Building on the recent literature on regionalization, the purpose of this paper is to explore the home‐region orientation of Spanish new multinationals in the manufacturing sector and investigate the impact of the liability of foreignness (LOF) on Spanish firms. Design/methodology/approach – The source of the empirical work is the Survey on Business Strategies from 2000 to 2008. The sample is fully representative of exporting Spanish manufacturing firms and collects more than 1,000 firms per year on average. The study defines and calculates the regionalization and multinationality ratios of home‐region oriented firms. Three moderating factors that affect the international behaviour of Spanish firms are introduced and analysed – the degree of foreign ownership, the level of advertising intensity and the level of research intensity. Findings – The results demonstrate a strong home‐region orientation for Spanish exporting firms in manufacturing and that the three moderating factors are critical to their regional orientation and degree of multinationality. Furthermore, the results are linked to the LOF. Originality/value – The paper sheds light on the regionalization topic, so far unexplored in the Spanish context. The original triad defined by Rugman is modified by dividing the world into three groups – the European Union, Latin America and the rest of the world – in order to fit Spanish interests. This paper contributes to understanding how firm specific advantages affect firms' behaviour and how they are related to the LOF.

Journal

Multinational Business ReviewEmerald Publishing

Published: Aug 19, 2011

Keywords: Spain; Manufacturing industries; Corporate strategy; Regionalization; New multinationals; Foreign ownership; Advertising intensity; Research intensity; Liability of foreignness

References