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Article: Power or Market? Location determinants of multinational headquarters in China

TitlePower or Market? Location determinants of multinational headquarters in China
Authors
KeywordsDecision making
Empirical analysis
Multinational enterprise
Strategic approach
Transitional economy
Issue Date2011
PublisherPion Ltd. The Journal's web site is located at http://www.envplan.com
Citation
Environment and Planning A, 2011, v. 43 n. 10, p. 2364-2383 How to Cite?
AbstractMultinational corporations (MNCs) have increasingly been establishing regional headquar-ters in China. However, no study has systematically examined how MNCs make strategic decisions about where to locate Chinese headquarters (CHQs) in this transition economy. The paper makes the first attempt to investigate the issue by focusing on two questions. First, what are the location-specific factors that determine where MNCs locate their CHQs? Second, how do these factors influence making the decision between Beijing and Shanghai, the two largest cities in China? We integrate existing literature and assess the differential roles of (1) path dependency, (2) institutional support, and (3) proximity to superior information. Data were collected through a large-scale survey of MNC CHQs in mainland China. The empirical analysis supports the three-dimensional framework and the central role of proximity to superior information in the decision-making process. The results advance existing understanding of MNC location decisions in China by revealing the unique interplay between power and market in this transition economy, and between Beijing and Shanghai, the two promising cities toward world city status, in particular. © 2011 Pion Ltd and its Licensors.
Persistent Identifierhttp://hdl.handle.net/10722/157928
ISSN
2015 Impact Factor: 1.46
2015 SCImago Journal Rankings: 1.460
ISI Accession Number ID
References

 

DC FieldValueLanguage
dc.contributor.authorWang, Ten_HK
dc.contributor.authorZhao, SXen_HK
dc.contributor.authorGu, FFen_HK
dc.contributor.authorChen, Yen_HK
dc.date.accessioned2012-08-08T08:56:22Z-
dc.date.available2012-08-08T08:56:22Z-
dc.date.issued2011en_HK
dc.identifier.citationEnvironment and Planning A, 2011, v. 43 n. 10, p. 2364-2383en_HK
dc.identifier.issn0308-518Xen_HK
dc.identifier.urihttp://hdl.handle.net/10722/157928-
dc.description.abstractMultinational corporations (MNCs) have increasingly been establishing regional headquar-ters in China. However, no study has systematically examined how MNCs make strategic decisions about where to locate Chinese headquarters (CHQs) in this transition economy. The paper makes the first attempt to investigate the issue by focusing on two questions. First, what are the location-specific factors that determine where MNCs locate their CHQs? Second, how do these factors influence making the decision between Beijing and Shanghai, the two largest cities in China? We integrate existing literature and assess the differential roles of (1) path dependency, (2) institutional support, and (3) proximity to superior information. Data were collected through a large-scale survey of MNC CHQs in mainland China. The empirical analysis supports the three-dimensional framework and the central role of proximity to superior information in the decision-making process. The results advance existing understanding of MNC location decisions in China by revealing the unique interplay between power and market in this transition economy, and between Beijing and Shanghai, the two promising cities toward world city status, in particular. © 2011 Pion Ltd and its Licensors.en_HK
dc.languageengen_US
dc.publisherPion Ltd. The Journal's web site is located at http://www.envplan.comen_HK
dc.relation.ispartofEnvironment and Planning Aen_HK
dc.subjectDecision making-
dc.subjectEmpirical analysis-
dc.subjectMultinational enterprise-
dc.subjectStrategic approach-
dc.subjectTransitional economy-
dc.titlePower or Market? Location determinants of multinational headquarters in Chinaen_HK
dc.typeArticleen_HK
dc.identifier.emailWang, T: dtwang@hkucc.hku.hken_HK
dc.identifier.emailZhao, SX: sxzhao@hku.hken_HK
dc.identifier.emailChen, Y: wendycy@hkucc.hku.hken_HK
dc.identifier.authorityWang, DT=rp01106en_HK
dc.identifier.authorityZhao, SX=rp00597en_HK
dc.identifier.authorityChen, WY=rp00589en_HK
dc.description.naturelink_to_subscribed_fulltexten_US
dc.identifier.doi10.1068/a448en_HK
dc.identifier.scopuseid_2-s2.0-80055036589en_HK
dc.identifier.hkuros209056-
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-80055036589&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume43en_HK
dc.identifier.issue10en_HK
dc.identifier.spage2364en_HK
dc.identifier.epage2383en_HK
dc.identifier.eissn1472-3409-
dc.identifier.isiWOS:000298067700009-
dc.publisher.placeUnited Kingdomen_HK
dc.identifier.scopusauthoridChen, WY=35728317600en_HK
dc.identifier.scopusauthoridGu, FF=8341699100en_HK
dc.identifier.scopusauthoridZhao, SX=7403577707en_HK
dc.identifier.scopusauthoridWang, DT=16553709100en_HK

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