¹Center for Strategic Management and Globalization, Copenhagen Business School, Frederiksberg, Denmark

Correspondence: CG Asmussen, Center for Strategic Management and Globalization, Copenhagen Business School, Porcelænshaven 24, DK-2000 Frederiksberg, Denmark. Tel: +45 3815 3034; Fax: +45 3815 3035; E-mail: cga.smg@cbs.dk

Received 29 June 2007; Revised 11 January 2008; Accepted 18 January 2008; Published online 20 November 2008.

Abstract

This paper proposes a multidimensional index of regional and global orientation that can be used in confirmatory studies with econometric methodologies. Unlike extant measures, the index is objectively scaled, and controls for home country orientation and market size differences. The index is shown to be consistent with models of internationalization that incorporate different assumptions about investment choice and global competition. Preliminary results show that large multinationals follow home region oriented internationalization paths, although much of the regional effect reported by previous studies in fact reflects strong home country biases.