Wang, EY and Kafouros, M (2020) Location still matters! How does geographic configuration influence the performance-enhancing advantages of FDI spillovers? Journal of International Management, 26 (3). 100777. ISSN 1075-4253
Abstract
Although many studies on FDI spillovers either implicitly or explicitly consider the firm as a single-location entity, most countries are dominated by multi-location business groups that consist of several affiliates. Business groups and their affiliates operate in different subnational regions and vary in their responsibilities (i.e., research and development, manufacturing, and marketing & sales) as well as in their ability to coordinate internally and minimize spatial transaction costs. We argue that such variations in turn affect the ability of business groups to benefit from intra- and inter-regional FDI spillovers. We advance prior research by examining how the effects of FDI spillovers on the performance of indigenous business groups in China are influenced by 1) the location and the geographic dispersion of their portfolios of affiliates and 2) the responsibility of each affiliate. Our analysis shows that the geographic dispersion of business groups has a profound effect on how much they benefit from FDI spillovers. It also shows that business groups are particularly effective in exploiting FDI spillovers through affiliates with marketing & sales responsibilities, while affiliates with other responsibilities are not effective in doing so.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020, Elsevier. All rights reserved. This is an author produced version of an article published in Journal of International Management. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | FDI spillovers; Multi-location enterprises; Geographic dispersion; Emerging markets; China |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 19 Aug 2020 14:45 |
Last Modified: | 07 Aug 2022 00:13 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.intman.2020.100777 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:164401 |
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