Working Papers Home


2014 Working Papers
2013 Working Papers
2012 Working Papers
2011 Working Papers
2010 Working Papers
2009 Working Papers
2008 Working Papers
2007 Working Papers
2006 Working Papers
2005 Working Papers
2004 Working Papers
2003 Working Papers
2002 Working Papers
2001 Working Papers
2000 Working Papers


Search All Papers


JEL Classification


Past Working Papers (Prior to 2000)


Office of Research
Home Page



Information on
Submitting a Paper



 
 
"The Relationship between Location-Bound Advantages and International Strategy: An Empirical Investigation"

Fang-Yi Lo, Joseph T. Mahoney, and Danchi Tan

 

First Author :

Fang-Yi Lo
International Trade
Feng Chia University
100, Wenhwa Rd., Seatwen
Taichung
Taiwan

886-4-24517250 ext. 4184

fylo@fcu.edu.tw


Second Author :

Joseph T. Mahoney
Business Administration
University of Illinois at Urbana-Champaign, College of Business
1206 S. Sixth St.
140C Wohlers Hall, MC 706
Champaign, IL 61820
USA

217-244-8257

josephm@illinois.edu

http://www.business.uiuc.edu/faculty/mahoney.html


Third Author :

Danchi Tan
International Business
National Chengchi University
64, Zhi-nan Rd. Sec. 2
Wenshan Taipei 116
Taiwan

886-2-9393091 ext. 81139

dctan@nccu.edu.tw

 
 
Abstract :
 
This paper examines the impact of location-bound advantage on the internationalization strategy of multinational enterprises (MNEs). The extant research literature suggests that an advantage’s location boundedness may be driven by: the nature of the firm advantage; organiza- tional embeddedness, and environmental embeddedness. We posit that these different drivers of location boundedness exert different impacts on internationalization strategies. Our empirical results reveal that organizational embeddedness lowers the breadth of internationalization 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 internationalization 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 decentralized organizational structures.
 
 
Keywords :
 
international strategy, location-bound advantages, multinational enterprise
 
 
Manuscript Received : 2010
Manuscript Published : 2010
 
 
This abstract has been viewed 799 times.
Click here to view the full text of this paper.