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A contingent view on the importance of inertia and mimicry in location choices by Chinese MNCs
Lin Yuan1; Nitin Pangarkar2
2016-07-06
Source PublicationInternational Journal of Business and Emerging Markets
ABS Journal Level1
ISSN1753-6219
Volume8Issue:3Pages:255-275
Abstract

This article examines the drivers of international location choices by Chinese multinational corporations. The study draws from prior literature to identify two key drivers of location choice: structural inertia, which implies repeating past choices, and inter-organisational mimicry, which implies following peers. The authors predict that the influence of these forces is contingent on industry and firm characteristics. Specifically, they hypothesise that both structural inertia and internal-organisational mimicry are less salient in high-technology industries and for highly internationalised firms. They also predict that structural inertia and inter-organisational mimicry work as substitutes; that is, when one is strong, the other is weak. Analyses of 661 new entries by 207 Chinese firms in 66 different countries provide strong support for the hypothesised relationships.

KeywordLocation Choice Inter-organisational Mimicry Structural Inertia Chinese Mncs Multinational Corporations China Contingent View International Locations Location Selection Facility Location
DOIhttp://doi.org/10.1504/IJBEM.2016.077573
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Document TypeJournal article
CollectionDEPARTMENT OF MANAGEMENT AND MARKETING
Affiliation1.Faculty of Business Administration, University of Macau, Avenida da Universidade, Taipa, Macau, China
2.NUS Business School, National University of Singapore, 15 Kent Ridge Drive, 199245, Singapore
First Author AffilicationFaculty of Business Administration
Recommended Citation
GB/T 7714
Lin Yuan,Nitin Pangarkar. A contingent view on the importance of inertia and mimicry in location choices by Chinese MNCs[J]. International Journal of Business and Emerging Markets,2016,8(3):255-275.
APA Lin Yuan,&Nitin Pangarkar.(2016).A contingent view on the importance of inertia and mimicry in location choices by Chinese MNCs.International Journal of Business and Emerging Markets,8(3),255-275.
MLA Lin Yuan,et al."A contingent view on the importance of inertia and mimicry in location choices by Chinese MNCs".International Journal of Business and Emerging Markets 8.3(2016):255-275.
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