A comparative model of firm size and the global operational dynamics of U.S. firms in Europe

This study focuses on the global operations of U.S. firms that have shifted from direct exporting to the location of facilities in Europe. All U.S. firms with physical facilities in Europe were surveyed. We develop a general model that integrates firms’ experience in global operations with their operations strategy, their global supply chain structure, and their ability to coordinate global operations through information technology. From the model emerge hypotheses that are tested using the structural equation modeling approach, taking into account differences in challenges across small- and medium-sized enterprises (SMEs) and large to very large firms. Our testing and comparisons give insight into the dynamics of the globalization process and provide direction for future research.