UM  > Faculty of Business Administration  > DEPARTMENT OF MANAGEMENT AND MARKETING
Inertia versus mimicry in location choices by Chinese multinationals
Lin Yuan1; Nitin Pangarkar2
2010-06-01
Source PublicationInternational Marketing Review
ABS Journal Level3
ISSN0265-1335
Volume27Issue:3Pages:295-315
Abstract

Purpose – The purpose of this paper is to examine the determinants of foreign direct investment location – specifically whether firms enter a particular market or not. Drawing from the ecology and institutional theories, the paper identifies firms’ own past (behavioral inertia) and rivals’ past choices (behavioral mimicry) as key determinants of location selection. The paper identifies the differences between developing country multinationals (MNCs) and developed country MNCs and their (differences)’ implications for the relative influence of mimetic versus inertial forces.

Design/methodology/approach – A unique and comprehensive database about the location choices of 204 Chinese firms between 1992 and 2005 was constructed and conditional logistic regressions were deployed to assess the direct effects of behavioral inertia/mimicry, and the moderating effect of host country environment, on the location choices of the sampled firms.

Findings – The paper finds that behavioral inertia has a stronger impact on the location decisions of Chinese MNCs than behavioral mimicry. It also finds that the host country’s institutions, openness, and policy stability moderate the relationship between behavioral mimicry and inertia, on one hand, and location choice, on the other hand, possibly because of these factors’ influence on the level of perceived uncertainty.

Originality/value – This is the first paper modeling the simultaneous effects of behavioral inertia and mimicry on location choice and the moderating effect of host country environment on these relationships. The strong empirical support for all the predictions lends credence to the conceptual foundations of the hypothesized relationships. The focus on developing country MNCs, which possess several distinctive characteristics, and the unique dataset, should also enhance the paper’s appeal.

KeywordDeveloping Countries Multinational Companies Market System China
DOIhttp://dx.doi.org/10.1108/02651331011048005
Indexed BySSCI ; SSCI
Language英語English
WOS Research AreaBusiness & Economics
WOS SubjectBusiness
WOS IDWOS:000279804800003
PublisherEMERALD GROUP PUBLISHING LTD, HOWARD HOUSE, WAGON LANE, BINGLEY BD16 1WA, W YORKSHIRE, ENGLAND
Fulltext Access
Citation statistics
Cited Times [WOS]:23   [WOS Record]     [Related Records in WOS]
Document TypeJournal article
CollectionDEPARTMENT OF MANAGEMENT AND MARKETING
Corresponding AuthorLin Yuan
Affiliation1.Department of Management and Marketing, University of Macau, Macau, China
2.NUS Business School, National University of Singapore, Singapore
First Author AffilicationUniversity of Macau
Corresponding Author AffilicationUniversity of Macau
Recommended Citation
GB/T 7714
Lin Yuan,Nitin Pangarkar. Inertia versus mimicry in location choices by Chinese multinationals[J]. International Marketing Review,2010,27(3):295-315.
APA Lin Yuan,&Nitin Pangarkar.(2010).Inertia versus mimicry in location choices by Chinese multinationals.International Marketing Review,27(3),295-315.
MLA Lin Yuan,et al."Inertia versus mimicry in location choices by Chinese multinationals".International Marketing Review 27.3(2010):295-315.
Files in This Item:
There are no files associated with this item.
Related Services
Recommend this item
Bookmark
Usage statistics
Export to Endnote
Google Scholar
Similar articles in Google Scholar
[Lin Yuan]'s Articles
[Nitin Pangarkar]'s Articles
Baidu academic
Similar articles in Baidu academic
[Lin Yuan]'s Articles
[Nitin Pangarkar]'s Articles
Bing Scholar
Similar articles in Bing Scholar
[Lin Yuan]'s Articles
[Nitin Pangarkar]'s Articles
Terms of Use
No data!
Social Bookmark/Share
All comments (0)
No comment.
 

Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.