Abstract
Location decisions of foreign subsidiaries in China were studied from the multi-market contact (MMC) perspective. Two sets of data in different industries, data on 1096 location decisions by US manufacturing ventures from 1979 to 1995 and data on 1108 location decisions by international hotels from 1990 to 2012, were analyzed. Contacts between an entrant and the incumbent firms in a target market were studied, but also contacts among those incumbent firms themselves. The two types of contact were shown to have distinct and interactive effects on foreign entry location choices across both samples. Besides, the influence of multi-market contact on foreign entry decisions was contingent upon the cultural distance between the home and host countries. These results promise to improve our understanding of the impact of multi-market competition on location decisions in the international setting.
| Original language | English |
|---|---|
| Pages (from-to) | 95-122 |
| Number of pages | 28 |
| Journal | Management International Review |
| Volume | 56 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 1 Feb 2016 |
| Externally published | Yes |
Keywords
- China
- Cultural distance
- Foreign entry
- Location choice
- Multi-market contact
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management