Journal Article10.1057/JIBS.2013.11
Global Cities And Multinational Enterprise Location Strategy
TL;DR: In this paper, the authors combine the concept of location derived by economic geographers with theories of the multinational enterprise (MNE) and the liability of foreignness developed by international business scholars, to examine the factors that propel MNEs toward, or away from, "global cities".
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Abstract: We combine the concept of location derived by economic geographers with theories of the multinational enterprise (MNE) and the liability of foreignness developed by international business scholars, to examine the factors that propel MNEs toward, or away from, “global cities”. We argue that three distinctive characteristics of global cities – global interconnectedness, cosmopolitanism, and abundance of advanced producer services – help MNEs overcome the costs of doing business abroad, and we identify the contingencies under which these characteristics combine with firm attributes to exert their strongest influence. Consistent with these arguments, our analysis of a large sample of MNE location decisions using a multilevel multinomial model suggests not only that MNEs have a strong propensity to locate within global cities, but also that these choices are associated with a nuanced interplay of firm- and subsidiary-level factors, including investment motives, proprietary capabilities, and business strategy. Our study provides important insights for international business scholars by shedding new light on MNE location choices and also contributes to our understanding of economic geography by examining the heterogeneous strategies and capabilities of MNEs – the primary agents of economic globalization – that shape the nature of global cities.
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Geographic scope and multinational enterprise performance
Anthony Goerzen,Paul W. Beamish +1 more
TL;DR: This article found that the relationship between economic performance and international asset dispersion is positive, but country environment diversity is negatively associated with performance, with a positive interaction between them, and disentangled the unique effects of the latent subcomponents of geographic scope on firm performance.
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Uncertainty, Imitation, and Plant Location: Japanese Multinational Corporations, 1990-1996
Witold J. Henisz,Andrew Delios +1 more
TL;DR: In this paper, the authors combine neo-institutional theory and research on the institutional environment to explain the process of organizational entry into new geographic markets, and show that mimetic strategies are more commonly pursued when the level of uncertainty is high.
The multinational corporation and the law of uneven development
Stephen Hymer
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TL;DR: The Law of Increasing Firm Size and the Law of Uneven Development as mentioned in this paper are two laws of economic development, which are related to ours in the sense that they can be seen as the same as ours.
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