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The Spatial Structure of Foreign Subsidiaries and MNE Expansion Strategy Journal of World Business

Jiang, G Frank, Holburn, Guy L.F and Beamish, Paul W. (2016) The Spatial Structure of Foreign Subsidiaries and MNE Expansion Strategy Journal of World Business. Journal of World Business, 51 (3). pp. 438-450. [Journal article]

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URL: https://doi.org/10.1016/j.jwb.2015.12.001

DOI: 10.1016/j.jwb.2015.12.001

Abstract

Drawing on internalization theory and economic geography research, we examine how the spatial structure of MNE subsidiaries in supranational regions affects subsidiary location choices. Our analysis of foreign production investments by Japanese manufacturing firms from 1971 to 2006 supports our theoretical predictions: firms were more likely to establish new production subsidiaries in countries geographically more proximate to existing production subsidiaries, but not to trading subsidiaries, in the same region. The proximity effect diminished for production subsidiaries engaged in accessing natural resources or R&D. Performance of production subsidiaries was also stronger for those closer to other production subsidiaries in the same region.

Item Type:Journal article
Keywords:Spatial transaction costs; Geographic distance; Internalization; Location choice
Faculties and Schools:Ulster Business School
Research Institutes and Groups:Business and Management Research Institute
ID Code:39912
Deposited By: Mrs Heather Brown
Deposited On:16 Apr 2018 13:44
Last Modified:16 Apr 2018 13:44

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