ASEAN Multinational Enterprises: A Structural Model Analysis of Strategic Coherence

Multinational enterprises (MNEs) from ASEAN have been internationalizing, and the dynamics of this process are of interest in the empirical literature of international business. The international organizational aspects of 135 ASEAN MNEs are examined, using Linear Structural Relations (LISREL, a statistical software package), to model their "strategic coherence", "dispersed functionality" and "international management capability". The key results are that the proposed LISREL model confirms that the predicted relationships exhibit high goodness-of-fit indices. Dispersed functionality significantly predicts strategic coherence. Dispersed functionality and international management capability display a non-recursive, or interdependent, correlation.

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