The Role of Multinational Corporation Characterisitics and Strategic Actions in Development of ASEAN Regionalism

In this paper the macro development of ASEAN regionalism is linked to the micro organizational level characterisitics and strategic actions of multinational corporations. Based on Nye (1971) and Herbert (1984), it was postulated that MNC characterisitics and strategic action would depend on the strategic objectives pursued (volume expansion, resource acquisition, reciprocity and integration). For the exploratory evaluation of these hypotheses a cross-sectional survey of 128 Singapore based MNCs was conducted. The results provide some support for Herbert's propositions. It was found that the volume expansion strategy was most strongly determinant of an ASEAN orientation. With regard to integrated corporations the findings are in the expected direction but disappointing from the ASEAN developmental point of view.