Beijing or Shanghai? The strategic location choice of large MNEs' host-country headquarters in China

Beijing or Shanghai? The strategic location choice of large MNEs' host-country headquarters in China

We argue that a multinational enterprise's (MNE's) location choice for its host-country headquarters (HCHQ) in the geographic space of the host country is determined by the interplay between the strategic roles of HCHQ in the organizational space of the MNE and the institutional space exte...

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Veröffentlicht in:Journal of international business studies 2013-12, Vol.44 (9), p.953-961
Hauptverfasser: Ma, Xufei, Delios, Andrew, Lau, Chung-Ming
Format: Artikel
Sprache:eng
Schlagworte:
Business and Management
Business Strategy/Leadership
Business structures
China
Chinese culture
Cities
Corporate headquarters
Cultural values
Economic geography
Educational administration
Emerging markets
Federal government
Foreign business
Foreign subsidiaries
Geodetic position
Government intervention
Host country
Hypotheses
International Business
Intervention
Learning centers
Location of enterprises
Location of industry
Management
Management theory
Modeling
Multinational corporations
Multinational enterprises
Organization
Politics
Principal place of business
RESEARCH NOTE
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Strategic management
Studies
Subsidiary companies
Zipf's Law
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Zusammenfassung:We argue that a multinational enterprise's (MNE's) location choice for its host-country headquarters (HCHQ) in the geographic space of the host country is determined by the interplay between the strategic roles of HCHQ in the organizational space of the MNE and the institutional space external and internal to the MNE. We focus on the location choice between Beijing and Shanghai. We test our arguments using data for a sample of Fortune Global 500 corporations in China (1979-2005). This study contributes to international business (IB) research by reinvigorating research on HCHQ. We also complement economic geography research on subnational agglomeration by using an IB perspective with a focus on the institutional idiosyncrasies of cities.
ISSN:0047-2506
1478-6990
DOI:10.1057/jibs.2013.49