REGIONAL MULTINATIONALS AND TRIAD STRATEGY

Abstract

We demonstrate that even the world’s most international multinational enterprises (MNEs) operate from home bases within each part of the “triad” of the EU, North America, and Japan. First, we develop a theoretical framework which distinguishes between the locus of MNE decision-making power and actual product characteristics. Second, we find the twenty MNEs with the highest foreign-to-total (F/T) sales ratios and their intra-regional sales, compared to the sales of the home region of each MNE. Only six actually operate across the triad; the others are bi-regional or home-triad oriented. This empirical evidence reveals that most MNEs operate on a regional/triad basis, rather than globally.

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