The relationship between location-bound advantages and international strategy: an empirical investigation Online publication date: Sat, 07-Mar-2015
by Fang-Yi Lo; Joseph T. Mahoney; Danchi Tan
International Journal of Strategic Change Management (IJSCM), Vol. 3, No. 4, 2011
Abstract: This paper examines the impact of location-bound advantage on the internationalisation strategy of Multinational Enterprises (MNEs). The extant research literature suggests that an advantages location boundedness may be driven by the nature of the advantage itself, organisational embeddedness and environmental embeddedness. We posit that these different drivers of location boundedness exert different impacts on internationalisation strategies. Our empirical results reveal that organisational embeddedness lowers the breadth of internationalisation of MNEs and increases the tendency of these firms to employ a global strategy. We also find that MNEs whose advantages are tacit and complex have a lower depth of internationalisation and are more likely to expand into culturally similar countries. Finally, our results show that MNEs whose advantages are highly embedded in the home environment tend to adopt a multi-domestic strategy and decentralised organisational structures.
Online publication date: Sat, 07-Mar-2015
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Strategic Change Management (IJSCM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com