Industrial relocation of Hong Kong manufacturing firms: towards an expanding industrial space beyond the Pearl river delta

Abstract

This paper explores the recent industrial relocation of Hong Kong manufacturing firms in the Pearl River Delta. Based on a combination of recent surveys, four in-depth case studies and nearly 20 firm interviews through the end of 2008, the paper argues that in response to a dynamic business environment in the region, some Hong Kong manufacturing firms in the PRD are forced to design new spatial strategies. The paper also identifies the different relocation strategies adopted by Hong Kong manufacturing firms, namely, total relocation, stratified relocation and ''pseudo relocation''. The industrial space of Hong Kong manufacturing firms will be expanded beyond the PRD. In addition, the new round of relocation of Hong Kong manufacturers is a response to the initiative ushered in by the provincial and local governments in order to achieve the objectives of industrial upgrading, sustainable environment and regional balanced development.

The impact of economic crisis on firm relocation: Greek SME movement to Bulgaria and its effects on business performance

“…Specific elements which are related to the strategy of the firms and determine business mobility (firm relocation incentives) have been identified in the literature. To begin with, most entrepreneurs move to push down the operational cost of the firm (Hayter 1997;van Dijk and Pellenbarg 2000;Domański 2003;Liao and Chan 2009). Strategies for reducing operational cost become more important in the case of economic decline at either the micro or macro level (Godart et al 2012).…”

“…This is of primary importance in the context of the European market integration, which has resulted in more competitive markets (Karagianni and Labrianidis 2001). Apart from relocation, businesspeople could proceed with other major external restructurings in the context of globalization, such as mergers and acquisitions, in order to improve business performance (Warf 2003;Liao and Chan 2009). Finally, scholars have drawn attention to the upgrade of the technological base and product quality (Castells 1996;Kiss 2007).…”

“…While other studies have examined relocation in two distinct periods of economic growth (Bitzenis 2006;Liao and Chan 2009), this manuscript presents the first-ever study that compares pre-and post-crisis business movements. Therefore, it contributes to the literature of business mobility (van Dijk and Pellenbarg 2000;Domański 2003;Brouwer et al 2004;Kiss 2007;Wright et al 2007;Smallbone et al 2012) by deepening our understanding about the effects of the crisis on firm relocation.…”

Global Economic Crisis and the Politics of Diversity

“…Other pressures such as labour shortage, rising wages, rising prices of limited land, water, electricity and raw materials, appreciation of Chinese currency, inflation and upsurge of raw materials, have all imposed serious challenges on the export-dominated coastal economy before the global financial crisis (Liao and Chan 2011;Wang and Mei 2009;Yang 2012). Production costs increased further due to the implementation of the New Labour Contract Law which began on 1 January 2008, and more stringent requirements to provide employees with various types of social security, as well as stricter enforcement of overtime hour limits and overtime pay (HKTDC 2011;).…”

Geographical dynamics and industrial relocation: spatial strategies of apparel firms in Ningbo, China

“…The concept of relocation needs to be clarified first. Most studies on firm relocation identify at least two types of relocation: complete relocation and partial relocation (Table 1) (Liao and Chan 2011;Yang 2012). Complete relocation refers to entirely relocating from an old location to a new one.…”