Location of International Business Activities: Integrating Ideas from Research in International Business, Strategic Management and Economic Geography

292 Pages·2014·1.36 MB·English

by  John Cantwell

Location of International
Business Activities
Integrating Ideas from Research in
International Business, Strategic
Management and Economic Geography
Edited by
John Cantwell
Location of International Business Activities
This page intentionally left blank
Location of International
Business Activities
Integrating Ideas from Research in
International Business, Strategic
Management and Economic Geography
Editedby
John Cantwell
RutgersUniversity,Newark,NJ,USA
Selection,introductionandeditorialmatter©JohnCantwell2014
Individualchapters©JournalofInternationalBusinessStudies2014
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Contents
ListofFiguresandTables vi
1 Introduction 1
JohnCantwell
2 MNEsasBorder-CrossingMulti-locationEnterprises:TheRoleof 8
DiscontinuitiesinGeographicSpace
SjoerdBeugelsdijkandRamMudambi
3 LocationandtheMultinationalEnterprise:ANeglectedFactor? 35
JohnH.Dunning
4 TheEconomicGeographyoftheInternetAge 63
EdwardE.LeamerandMichaelStorper
5 InternationalEntrepreneurshipandGeographicLocation:An 94
EmpiricalExaminationofNewVentureInternationalization
StephnmieA.Fernhaber,BtreeA.Gilbertand
PatriciaP.McDougall
6 GlobalCitiesandMultinationalEnterpriseLocationStrategy 137
AnthonyGoerzen,ChristianG.Asmussenand
BoB.Nielsen
7 TheHassleFactor:AnExplanationforManagerialLocational 181
Shunning
AndreasSchotterandPaulW.Beamish
8 RegulatoryEnvironmentsandtheLocationDecision:Evidence 226
fromtheEarlyForeignMarketEntriesofNew-Technology-based
Firms
RégisCoeurderoyandGordonMurray
9 LocationandtheMultinationalEnterprise 261
JohnCantwell
Index 274
v
List of Figures and Tables
Figures
2.1 Relativelylowsub-nationalspatialheterogeneity 16
2.2 Relativelyhighsub-nationalspatialheterogeneity 16
2.A1 TheDunningeffect 32
2.A2 TheGhemawateffect 33
4.1 U.S.tradewithMexicoandCanadaaspercentofU.S.exports
andimports 66
4.2 WestGermantradingpartners,1985 70
4.3 Accesstomarketsandpercapitaincome,1960and1990 72
5.1 Relationshipbetweenclusterconcentrationandinternational
intensity(inflectionpoint=8.6) 120
5.2 Relationshipbetweenclusterconcentrationandinternational
scope(inflectionpoint=8.2) 120
5.3 Moderatingeffectsofsizeontherelationshipbetweencluster
concentrationandinternationalscope 121
5.4 ModeratingeffectsofR&Dintensityontherelationship
betweenclusterconcentrationandinternationalscope 122
5.5 Moderatingeffectsofinternationalexperienceonthe
relationshipbetweenclusterconcentrationandinternational
intensity 123
7.1 Researchmodel 190
7.2 Hasslefactorconstruct 192
Tables
3.1 Somevariablesinfluencingthelocationofvalueadded
activitiesbyMNEsinthe1970sand1990s 47
4.1 OECDtrade(exportsplusimports)betweenadjacent
countries,islandnationsandothers(percentoftotaltrade
percategory) 68
vi
ListofFiguresandTables vii
4.2 Messages 75
4.3 Messages,transactionsandlocationofstandardizedand
specializedproducts 81
4.4 ExamplesofpotentialchangesintheInternetage 84
5.1 Summaryofsample(n=156) 105
5.2 Clustermeasuresoflocationsrepresentingnewventuresin
oursample(2000datashown) 108
5.3 Clusterlocationquotientoflocationsrepresentingnew
venturesinoursample 112
5.4 Correlations,meansandstandarddeviations(n=156) 116
5.5 Regressionresults:internationalintensitydependentvariable 118
5.6 Regressionresults:internationalscopedependentvariable 119
6.1 Globalcitiesandtheliabilityofforeignness 147
6.2 Arosterofworldcities 155
6.3 Correlationsanddescriptivestatistics 160
6.4 MNEinvestmentlocationinglobalcities 161
6.5 Multilevelmultinomiallogisticregressionmodelsofglobal
citylocation 163
7.1 Datasources 196
7.2 Descriptivestatistics:bivariatecorrelations,means,and
standarddeviations 200
7.3 Loadings(finalmodel) 201
7.4 Discriminantvalidity 202
7.5 Summaryofpathestimates 204
7.6 Robustnesstest 206
7.7 Hasslefactorscoresbycountry 208
8.1 ForeignentrychoicesbyNTBFs(binomiallogitmodel) 243
8.2 PreferencesofforeignentriesbyNTBFs(rank-orderedlogistic
regressionmodel) 245
8.3 ForeignentrytimingbyNTBFs(Coxregression) 247
8.A1DescriptivestatisticsandPearsoncorrelations
amongvariables 260
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1
Introduction
John Cantwell
RutgersUniversity,Newark,NJ,USA
Inrecentyearsanextensiverangeofnewresearchhasbeenrevisitingthe
topicofthe locationofinternational businessactivitiesfrom avarietyof
different perspectives and background interests. This work has been
inspired in part by two apparently quite different but actually related
contemporarytrends:ontheonehand,anemergenceorrevitalizationof
clustersofactivitiesco-locatedinandaroundselectedglobalcityregions
orfast growing metropolitanareas;and onthe other hand, an increased
globaldispersionofactivitiesconductedwithinthevaluechainsmanaged
orcoordinatedbymanylargemultinationalenterprises(MNEs)andtheir
businesspartners.
Theformertrendhasgivenrisetodiscussionsofhowtheeliteofthe
cultural-cognitiveeconomy ofthe21stcentury(inAllenScott’s[2012]
terminology) or the creative class (Richard Florida’s [2002] term) are
now being drawn or brought back to major urban centers; while
the latter trend is associated with debates over outsourcing, and the
economic and social consequences of shifts in the ownership and
location of distinct nodes of value chains once production systems
become more fragmented and the component parts of such systems
become more geographically dispersed.
Anincreasedinterestinthesubjectofinternationalbusinesslocationhas
been shown by scholars in Strategic Management, in Economic Geogra-
phy,andinRegionalScience,aswellasinourowninterdisciplinaryfieldof
InternationalBusinessStudies.However,asisoftenthe caseinacademic
researchcommunities,thesebodiesofscholarshiphavetendedtodevelop
atsomethingofadistance fromone another, eachconversinginternally
more than they have with one another. For an earlier attempt to bring
together especially the Economic Geography and International Business
literaturesonlocationseeIammarinoandMcCann(2013).
1