Document Type
Article
Publication Date
3-1-2023
Abstract
Multinational firms that enter regional country blocks, such as Latin America, often choose a beachhead country, i.e. an entry point, as a launchpad into other countries in the region. While some recent scholarship examines beachhead decisions, research that explicitly examines beach- head choice in a regional context and the subsequent speed of expansion and firm performance in the region is surprisingly absent in international business literature. To address this gap, we examine whether the beachhead choice affects the speed and performance of regional expan- sion of multinational firms. We also analyse whether a firm’s regional speed and performance are dependent on the country’s sequence of expansion. Using a uniquely compiled dataset of firms that entered Latin America during 1990–2005, we find that a firm’s regional speed and performance are sensitive to both the beachhead choice and the specific path the firm takes. Specifically, firms that choose regionally representative beachheads fare better.
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Recommended Citation
Parakkal, Raju; Johnson, Joseph; and Bartz-Marvez, Sherry, "The Drivers of Successful Regional Expansion: Evidence From Multinational Corporations in Latin America During 1990–2005" (2023). College of Humanities and Sciences Faculty Papers. Paper 26.
https://jdc.jefferson.edu/jchsfp/26
Language
English
Included in
Business Administration, Management, and Operations Commons, International Business Commons
Comments
This article is the author's final published version in Transnational Corporations Review, Volume 15, Issue 1, March 2023, Pages 27 - 42.
The published version is available at https://doi.org/10.1016/j.tncr.2023.100003.
Copyright © 2023 The Author(s)