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Stallkamp, M.; Pinkham, B. C.; Schotter, A.; Buchel, O.,
(Forthcoming), "Core or Periphery? The Effects of Country-of-Origin Agglomerations on the Within-Country Expansion of MNEs", Journal of International Business Studies.
Abstract: We show how the initial subnational entry location of foreign multinational enterprises (MNEs) in China influences their subsequent within-country location choices and expansion speed. We distinguish between MNEs that establish their first subsidiary in co-ethnic coresdense agglomerations of other firms from the same country of originand MNEs that locate their first subsidiary in the periphery, i.e., outside of these co-ethnic cores. To identify co-ethnic cores in China, we employ a geo-visualization methodology, which draws the boundaries of cores organically and dynamically over time. We contrast our findings with the prevailing approach of using static administrative boundaries for identifying agglomerations. Our results provide evidence of path dependency, in that (a) entry through subnational locations with strong co-ethnic communities is followed by expansion into other locations where co-ethnic communities are present, and that (b) entry through co-ethnic communities accelerates the pace at which MNEs establish additional subsidiaries in China. We also find that co-ethnic community effects continue to influence within-country MNE activities over time, despite a host of economic, institutional, and investment developments.
Link(s) to publication:
http://dx.doi.org/10.1057/s41267-016-0060-x
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Schotter, A.; Stallkamp, M.; Pinkham, B. C.,
2017, "MNE Headquarters Disaggregation: The Formation Antecedents of Regional Management Centers", Journal of Management Studies, December 54(8): 1144 - 1169.
Abstract: This research examines region-bound headquarters disaggregation in multinational enterprises (MNEs). We link the formation of regional management centersboth dedicated regional headquarters (RHQs) and regional management mandates (RMMs) granted to operating subsidiariesto the complexity argument underlying organizational information processing theory. We demonstrate how different dimensions of complexity associated with the number and dispersion of an MNE’s subsidiary network in a focal region affect whether, and in which form region-bound headquarters disaggregation takes place. Additionally, we consider boundary conditions affecting RMC formation based on within-region experience, global MNE footprint, and between-region effects. Empirically, we utilize a large global dataset of Japanese MNE foreign investment for the period from 1992 to 2014, which allows us to perform longitudinal event history analyses.
Link(s) to publication:
http://dx.doi.org/10.1111/joms.12285
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