Structural and competitive determinants of a global integration strategy

The relationship between a business's global integration strategy and its performance and this relationship varied significantly by industry; four of the industries studied appeared to be under-globalized, while the remaining three industries were at or near an optimal level of globalization.

Abstract

Abstract Both structural determinants and competitive factors can work to define the relevant environment for strategy formulation within an industry. This study examines the effects of each of these two sets of factors on global integration strategies, and finds that their impacts vary considerably from one industry to another. The study also investigates the relationship between a business's global integration strategy and its performance, using an industry'specific perspective. In the aggregate, the businesses studied appear to be under‐globalized. However, this relationship varied significantly by industry; four of the industries studied appeared to be under‐globalized, while the remaining three industries were at or near an optimal level of globalization.