Beijing or Shanghai? The strategic location choice of large MNEs’ host-country headquarters in China

Ma, Xufei; Delios, Andrew; Lau, Chung‐Ming

doi:10.1057/jibs.2013.49

Cited by 75 publications

(52 citation statements)

References 40 publications

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“…Many formal regulative institutions formulated by central or federal governments are eventually interpreted and implemented by subnational government agencies. The subnational differences in the endowments of resources, culture, and historical legacy also lead to variations in institutions (Chan et al, 2010;Kirkman et al, 2017;Ma et al, 2013a). In particular, subnational heterogeneity in government intervention and legislative environment widely exists in emerging markets (Chan et al, 2010;Ma, Tong, & Fitza, 2013b;World Bank, 2016).…”

Section: Heterogeneity In Subnational Institutionsmentioning

confidence: 99%

“…In particular, subnational heterogeneity in government intervention and legislative environment widely exists in emerging markets (Chan et al, 2010;Ma, Tong, & Fitza, 2013b;World Bank, 2016). Managers need to calculate the benefits and costs associated with subnational locations (Ma et al, 2013a).…”

Section: Heterogeneity In Subnational Institutionsmentioning

confidence: 99%

“…Drawing on recent literature (Chan et al, 2010;Gao, Wang, & Che, 2017;Kirkman, Lowe, & Gibson, 2017;Ma, Delios, & Lau, 2013a), we adopt a broad term ''subnation'' for intra-national regions, although different countries use different terms, e.g., provinces, states, prefectures, counties, boroughs, and towns. Most non-tariff measures (NTMs) occur between developed countries rather than between developed and developing countries (WTO, 2012, pp.…”

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confidence: 99%

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Rapid expansion of international new ventures across institutional distance

2018

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Rapid export expansion into institutionally distant locations has become more possible in the era of digital economy. Will such rapid expansion bring desirable outcome to firms? In a context of international new ventures (INVs) from emerging markets, we reconceptualize export expansion speed as the pace of exporting across institutional distance over a certain period of time. We then examine the relationship between rapid export expansion across institutional distance and overall firm performance. We incorporate directionality into export expansion and hypothesize the relationship to be positive when INVs export upwardly to more open countries, yet the relationship to be negative when INVs export downwardly to less open countries. We also hypothesize that the degree of market liberalization in subnational regions of origin of the INVs moderates the above speed-performance relationships. Instrumental variable models based on data of Chinese indigenous INVs during 2000-2009 support these hypotheses. This study both zooms in and zooms out the analytical lens along the location-related institutional axis, examines the joint effect of institutions involved in supranational directions and subnational origins on firm performance, and advances institutional theory.

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Section: Heterogeneity In Subnational Institutionsmentioning

confidence: 99%

Section: Heterogeneity In Subnational Institutionsmentioning

confidence: 99%

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confidence: 99%

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Rapid expansion of international new ventures across institutional distance

2018

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“…These three types of clustering only accounted for 12-16% of all of the cities. Both market orientation and government guidance contribute to the accumulation patterns of headquarters [1,18,29,51,52]. The implementation of the "Unbalanced Development Strategy" largely resulted in this pronounced inhomogeneity of headquarters among cities and districts.…”

Section: Getis-ord Gi* Statistic In Different Periodsmentioning

confidence: 99%

Spatial Distribution Pattern of the Headquarters of Listed Firms in China

Zhang

Yang

2018

Sustainability

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This study chose 4667 listed firms with headquarters in China as the research objects. The spatial aggregations of headquarters in sub-periods and subsectors were investigated based on prefecture-level cities using Global Moran's I statistic, the Getis-Ord Gi* statistic, and kernel density estimation. The spatial association and frequent patterns of headquarters belonging to different sectors were analyzed using the Apriori algorithm. The results showed the following: (1) Most headquarters of listed firms agglomerate around megacities and concentrate in the coastal regions.(2) Many prefer that headquarters be located in an area within a 5 km radius, forming the pivotal local industry cluster. (3) Industrial, information technology, and consumer discretionary firms show a higher degree of agglomeration than materials and health care firms. Materials and consumer discretionary industries have a stronger spillover effect on surrounding cities compared to industrial, information technology, and health care firms. (4) Service industries show a strong spatial association with other sectors at all distance thresholds and frequent items. These results can provide a reference for future considerations of headquarters locations, industrial development, and the reshaping of urban networks.

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“…The reason for this is that in developing countries, a growing number of giant manufacturing corporations and banks have been established (for example, the leading four companies of the Forbes "The Global 2,000" for 2015 are all headquartered in China), and they can significantly affect the world economy (Sauvant, 2008). In developing countries, the high-level decision-making activities of large corporations tend to be geographically more concentrated in some dominant cities, and primarily in capitals; therefore, some of these cities have become globally important headquarter cities (see, for example, Lai, 2012;Ma et al, 2013;Pan, Xia, 2014;Pan et al, 2015). However, despite the rapid growth of their economies, the financial systems of developing countries can generally be considered as fairly undeveloped (Elliot, Yan, 2013), and cannot be compared with those of developed countries (The World Bank, 2012).…”

Section: The Command and Control Function Of Cities In The Mainstreammentioning

confidence: 99%

Cities as command and control centres of the world economy: An empirical analysis, 2006–2015

Csomós

2017

Bulletin of Geography. Socio-Economic Series

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Abstract. As a result of their rapid economic growth, several powerful corporate giants have emerged in developing countries, especially in China, operating not only in the traditional manufacturing sector, but also in high-tech industries and finance. Major cities in developing countries have gradually become important command and control centres of the global economy, and have also become powerful enough to be in the same tier as major cities of developed countries around the world. In this paper, I examine the position of cities as command and control centres on the basis of the power of their headquartered corporations. The result shows that until 2012, New York, London, Tokyo, and Paris; i.e. the global cities, were the leading command and control centres. However, the gap between these global cities and Beijing gradually closed, and by 2015, the Chinese capital outranked all the global cities. The outstanding performance of Beijing-based corporations that operate in financial, energy, and construction services sectors is the driving force behind Beijing's increasing global power. In addition, the leading position of the global cities as command and control centres has been threatened by the San Francisco-San Jose metropolitan region, a newly emerging economic hub in the United States.

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Beijing or Shanghai? The strategic location choice of large MNEs’ host-country headquarters in China

Cited by 75 publications

References 40 publications

Rapid expansion of international new ventures across institutional distance

Rapid expansion of international new ventures across institutional distance

Spatial Distribution Pattern of the Headquarters of Listed Firms in China

Cities as command and control centres of the world economy: An empirical analysis, 2006–2015

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