Has the rise of China’s domestic supply chain contributed to its GDP increases?

Chu, Yun-Peng; Ou, Yi-Pey

doi:10.1080/00036846.2022.2097182

Cited by 1 publication

(1 citation statement)

References 26 publications

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“…Some governments dislike the country of origin of some firms because they perceive them as a threat to their sovereignty; foreign firms from particular countries may undermine the ability of the government to exercise full control over economic decisions because these firms have the flexibility to shift production across countries in which they are present (Kobrin, 2001 ; Stopford & Strange, 1992 ). Alternatively, government officials may dislike the country of origin for ideological reasons, such as in countries that want to reduce dependence on other countries (Bruton, 1998 ; Chou and Ou, 2022 ).…”

Section: The Impact Of Government- and Consumer-based Country-of-orig...mentioning

confidence: 99%

Beauty in the Eyes of the Beholders: How Government- and Consumer-Based Country-of-Origin Advantages and Disadvantages Drive Host Country Investment Dynamics

Cuervo-Cazurra

2023

Manag Int Rev

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Building on the resource-based view, we propose conceptualizing a foreign multinational’s country of origin as a resource, an asset tied semi-permanently to the firm, and analyze how this resource affects its host country investments. We argue that the country of origin provides an advantage or disadvantage in the host country depending on its positive or negative view among the host-country government and consumers. This results in four alternative configurations of host country investment dynamics based on the alignment of their views. First, when a multinational’s country of origin generates a government-based advantage and a consumer-based disadvantage, the multinational is more likely to make larger initial investments to benefit from incentives and larger subsequent localization investments to disassociate itself from the country of origin. Second, when the country of origin creates a government-based disadvantage and a consumer-based advantage, the foreign firm is more likely to make smaller initial and subsequent investments to maintain its association with the country of origin. Third, when the country of origin leads to government-based and consumer-based advantages, the foreign multinational is more likely to make a large initial investment to benefit from government incentives and smaller subsequent investments to maintain its association with the country of origin. Finally, when the country of origin leads to government-based and consumer-based disadvantages, the foreign multinational is more likely to make smaller initial investments to minimize risk and larger subsequent investments to localize.

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Section: The Impact Of Government- and Consumer-based Country-of-orig...mentioning

confidence: 99%

Beauty in the Eyes of the Beholders: How Government- and Consumer-Based Country-of-Origin Advantages and Disadvantages Drive Host Country Investment Dynamics

Cuervo-Cazurra

2023

Manag Int Rev

View full text Add to dashboard Cite

show abstract

Has the rise of China’s domestic supply chain contributed to its GDP increases?

Cited by 1 publication

References 26 publications

Beauty in the Eyes of the Beholders: How Government- and Consumer-Based Country-of-Origin Advantages and Disadvantages Drive Host Country Investment Dynamics

Beauty in the Eyes of the Beholders: How Government- and Consumer-Based Country-of-Origin Advantages and Disadvantages Drive Host Country Investment Dynamics

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