Types of firms generating network externalities and MNCs' co-location decisions

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This study identifies and examines sources of network externalities that influence MNCs to agglomerate their foreign operations in specific regions. Using data for Korean firms that invested in China, this study found that network externalities were sensitive to the types of firms constituting a regional network. It also found stronger network externalities within firms than across firms, from firms of the same nationality than from those of different nationalities, and from firms in the same industry than from those of different industries. As we defined the types of firms more precisely, distinctive curvilinear relationships between network externalities and the likelihood of co-location emerged. Copyright (c) 2005 John Wiley & Sons, Ltd.
Publisher
JOHN WILEY & SONS LTD
Issue Date
2005-07
Language
English
Article Type
Article
Keywords

FOREIGN DIRECT-INVESTMENT; INTERNATIONAL EXPANSION STRATEGY; UNITED-STATES; INTERORGANIZATIONAL IMITATION; MULTINATIONAL-CORPORATIONS; PLANT LOCATION; AGGLOMERATION; KNOWLEDGE; COMPETITION; CHOICE

Citation

STRATEGIC MANAGEMENT JOURNAL, v.26, no.7, pp.595 - 615

ISSN
0143-2095
DOI
10.1002/smj.464
URI
http://hdl.handle.net/10203/255881
Appears in Collection
MT-Journal Papers(저널논문)
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