Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China

Jean, Ruey‐Jer “Bryan”; Tan, Danchi; Sinkovics, Rudolf R.

doi:10.1016/j.ibusrev.2011.02.012

Cited by 100 publications

(89 citation statements)

References 45 publications

(87 reference statements)

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“…Such results are in contrast with most of the past literature. We contradict to Harrigan (1987 and1988), Li, Poppo and Zhou (2008), Alvarez, Marin and Fonfria (2009) and Jean, Tan, and Sinkovics (2011) as all of these articles report that networking significantly improves firm competitiveness in emerging countries. In a sense, our findings on Turkish textile and apparel firms may relate to the idea that managerial network ties are important for the domestic firms but they become less important when the firm stretches its activities abroad where competition is based on quality and price and networks are non-existent to begin with.…”

Section: Discussionmentioning

confidence: 58%

Determinants of firm competitiveness: case of the Turkish textile and apparel industry

Karabag

Lau

Suvankulov

2013

The Journal of The Textile Institute

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This article explores determinants of competitiveness in the booming Turkish textile and apparel industry. Using focus groups, nationwide survey data and explanatory factor analysis we identify 27 competitiveness items grouped into eight constructs. According to Turkish managers, the competitiveness of textile and apparel firm is heavily determined by the product differentiation, efforts across foreign markets, and availability of government's incentive and support programs. In contrast to existing studies, we find little evidence that firm networking in different forms such as close relationship politicians and state employees, clustering, and participating in the industry associations have a large effect on firm competitiveness.

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Section: Discussionmentioning

confidence: 58%

Determinants of firm competitiveness: case of the Turkish textile and apparel industry

Karabag

Lau

Suvankulov

2013

The Journal of The Textile Institute

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“…The cause of these conflicts has been due to the territorial rights (Jean, Tan, & Sinkovics, 2011). This has caused China to have a poor relationship with its neighbors, and they rarely conduct any business deals with one another.…”

Section: Literature Review Strategy Behind China's Growthmentioning

confidence: 99%

“…China has adopted a domestic strategy that permits its civilians to promote global market that helps in increasing China's gross domestic product (GDP). Globalization has both some positive and negative results, in this section, we are going to look at the role of globalization in the growth of China (Jean et al, 2011).…”

Section: Role Of Globalization In Growth Of Chinamentioning

confidence: 99%

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China’s Growth and Its Effects on Taiwan: What Does the Future Hold

Feng¹

2015

UCPA

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In the study, the researcher investigated the strategy that has been behind China's growth. It has been found that China was using a "smile strategy". The strategy is to ensure peaceful co-existence between China and its neighbors.China had used this strategy to connect with most of its neighbors to encourage business, trade, and investment.Globalization has played a crucial role in the growth and development of China. China has always encouraged globalization and has connected with some of the countries in the neighborhood. This is because it depends on foreign investments for half of its imports and exports. Also, Taiwan and China have very tight economic ties. They depend on each other for economic development and Taiwan is among China's top business partners. In future, China plans to establish more links across the world that will enable it to develop economically. It is also expected to rise as a superpower and work with the rest of the superpowers in decision-making on issues affecting the world.

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“…We begin to address this gap by demonstrating that an MNE's initial location choice in a host country -within or outside of co-ethnic communities -can have important consequences for its subsequent within-country expansion. An MNE that enters a host country through a location with a strong coethnic community may enjoy sustained benefits such as easier access to financing, social support for expatriates and their families, and access to information and other resources (Hernandez, 2014;Jean, Tan, & Sinkovics, 2011;Li, Gwon, & Hernandez, 2015;Miller et al, 2008). This co-ethnic support may affect the MNE's subsequent withincountry location choices and expansion speed, i.e., the rate at which an MNE establishes additional subsidiaries in the host country.…”

Section: Introductionmentioning

confidence: 99%

Core or periphery? The effects of country-of-origin agglomerations on the within-country expansion of MNEs

et al. 2018

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We show how the initial subnational entry location of foreign multinational enterprises (MNEs) in China influences their subsequent within-country location choices and expansion speed. We distinguish between MNEs that establish their first subsidiary in co-ethnic cores -dense agglomerations of other firms from the same country of origin -and MNEs that locate their first subsidiary in the periphery, i.e., outside of these co-ethnic cores. To identify co-ethnic cores in China, we employ a geo-visualization methodology, which draws the boundaries of cores organically and dynamically over time. We contrast our findings with the prevailing approach of using static administrative boundaries for identifying agglomerations. Our results provide evidence of path dependency, in that (a) entry through subnational locations with strong co-ethnic communities is followed by expansion into other locations where co-ethnic communities are present, and that (b) entry through co-ethnic communities accelerates the pace at which MNEs establish additional subsidiaries in China. We also find that co-ethnic community effects continue to influence within-country MNE activities over time, despite a host of economic, institutional, and investment developments.

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Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China

Cited by 100 publications

References 45 publications

Determinants of firm competitiveness: case of the Turkish textile and apparel industry

Determinants of firm competitiveness: case of the Turkish textile and apparel industry

China’s Growth and Its Effects on Taiwan: What Does the Future Hold

Core or periphery? The effects of country-of-origin agglomerations on the within-country expansion of MNEs

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