Industry globalization: construct, measurement and variation across industries

Abstract

Purpose The purpose of this paper is to identify some of the major issues relating to the conceptualization and operationalization of industry globalization. Findings Globalized industries have four important characteristics: cross-border product flows, cross-border capital flows, dispersal of global value chains and global competition. However, lack of availability of data limits our ability to develop an operationalization that encompasses all these four aspects of globalization. Practical implications The authors identify some of the most important factors driving industry globalization as well as the major impediments to globalization. Originality/value Although the term “globalization” has attained a nearly “taken for granted” status, its meaning is rather vaguely specified and is often context dependent. This paper delineates the domain of the construct and identifies many of the practical issues in operationalizing the construct.