Sister cities, cross-national FDI, and the subnational FDI location decision

Hu, Tianyou; Natarajan, Siddharth; Delios, Andrew

doi:10.1057/s41267-021-00409-2

Cited by 28 publications

(11 citation statements)

References 88 publications

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“…We used a dummy variable to control for the capital city, as proximity to a country’s political centre may influence R&D investment (Kim et al , 2012). FDI scale, measured as the number of employees in subsidiaries in the host country, was included as a scale control (Hu et al , 2021). Institutional quality in the host country affects the attractiveness of foreign investors when undertaking FDI (Nielsen et al , 2017; Yang, 2018).…”

Section: Methodsmentioning

confidence: 99%

Are Chinese MNEs more strongly attracted to global cities and knowledge intensive city clusters than developed market MNEs when undertaking greenfield strategic asset seeking related FDI?

Sutherland²,

Peng³

et al. 2022

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Purpose Cities are host to many of the world’s knowledge intensive research and innovation clusters. As such, they are likely to be attractive locations for emerging market multinational enterprises (MNEs) seeking to engage in knowledge seeking “springboard” type firm-level catch-up strategies. The purpose of this study is to therefore explore whether city-based research-intensive clusters containing deep pools of location bounded (i.e. “sticky”) knowledge are a stronger driver for greenfield research and development (R&D)-related FDI projects for Chinese MNEs than they are for developed market MNEs. Design/methodology/approach The authors use logistic modelling on 97,163 worldwide greenfield FDI projects to explore the relative likelihoods of Chinese MNEs engaging in R&D-related greenfield (i.e. “strategic asset seeking”) FDI projects as well as how city type (global or research-intensive cluster city) moderates this relationship for Chinese MNEs. Findings The authors find that Chinese MNEs are more likely to engage in overseas R&D FDI projects (compared with other types of project) than DMNEs and that research-intensive city clusters hold a stronger attraction for Chinese MNEs than developed market MNEs. Research limitations/implications The authors discuss how the research contributes to the debate on emerging market MNE catch-up theory, as well as that on sub-national city location choice, by highlighting the growing importance of sub-national geography to understanding strategic asset seeking related greenfield FDI. Practical implications Sub-national city location choice is an important driver of strategic asset seeking FDI for Chinese MNEs, one that both national and local city level policymakers should pay attention to. Social implications Chinese FDI via aggressive mergers and acquisitions to acquire key technologies has been restricted in recent years. Policymakers must consider whether they may also wish to restrict Chinese greenfield FDI in R&D-related projects, which now exhibit a pronounced upward trend. Originality/value The authors highlight the growing importance of sub-national geography to understanding strategic asset seeking related greenfield FDI in Chinese MNEs (and how it plays, more generally, a central role in their strategies).

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Section: Methodsmentioning

confidence: 99%

Are Chinese MNEs more strongly attracted to global cities and knowledge intensive city clusters than developed market MNEs when undertaking greenfield strategic asset seeking related FDI?

Sutherland²,

Peng³

et al. 2022

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“…Since the program started, trade activities have increased, and the number of people and students who have traveled from the U.S. to visit a sister city has also increased and vice versa (Sister Cities International, 2006). Hu et al (2021) have characterized sister city relationships as “decentralized intergovernmental relationships” (p. 1279) that not only promote information exchange between governments, businesses, and citizens but also allow local leaders to build relationships and economic exchanges for the local community.…”

Section: Literature Reviewmentioning

confidence: 99%

Extending the cultural-economic model of public relations through Bourdieu’s theoretical lens to inform public diplomacy efforts

Ertem-Eray

2023

Public Relations Inquiry

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Several scholars have addressed the convergence of public relations and public diplomacy theories, and many have argued that public diplomacy needs to move beyond normative theories of communication. Yet little scholarly work has been done to date. To fill this gap, this study explores how critical and postmodern theoretical approaches can inform public diplomacy practice by extending the cultural–economic model (CEM) of public relations through Pierre Bourdieu’s theory of practice. Based on interviews with organizational members of Sister Cities International (SCI), this study suggests that critical–cultural and postmodern perspectives can inform SCI’s public diplomacy efforts by considering larger structural factors in tension with agency. Thus, this study contributes to both the development of robust international public relations theory and theory building in the public diplomacy field. Findings indicate that drawing on Bourdieu’s Theory of Practice (1997), social capital contributes to the notion of institutionalized relationships, such as family or resources, that individuals acquire through group memberships as found in articulations within the CEM. Additionally, although the CEM explains the connection between culture and power in creating meaning, Bourdieu’s notion of cultural capital makes explicit a focus on education, which is a significant focus of many public diplomacy efforts. Therefore, the term cultural capital provides additional insight into the model to inform public diplomacy efforts. Thus, this study extends the CEM through Pierre Bourdieu’s theory of practice by indicating the role of social capital and cultural capital in SCI’s public diplomacy efforts.

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“…In the context of China, scholars have examined the impacts of economic institutions on FDI location choices in various regions within the country. Given that China is characterized by substantial regional disparity in economic institutions, including differences across regions and cities in legal codes, property rights protection and contract enforcement, it is essential to examine the cross-region variations from an economic institution perspective (Hu et al , 2021). For instance, Du et al (2008) examined the impact of economic institutions on FDI location choices made by 6,288 US multinationals in various regions in China from 1993 to 2001 and found that regions with stronger economic institutions and policies such as property rights protection and contract enforcement were more likely to attract US-based MNEs to invest in those regions.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…The main argument of this stream of research is that institutional influence at a subnational level is a critical criterion for MNEs to consider in making FDI decisions. Along this line of inquiry, scholars call for more comprehensive research to gain a better understanding of location-specific characteristics of subnational regions, particularly cities (Arregle et al , 2013; Chan et al , 2010; Du and Williams, 2017; Hu et al ,2021).…”

Section: Introductionmentioning

confidence: 99%

Locations, city connectivity and innovation zones in China: a dynamic perspective of knowledge community

Krusekopf²

2022

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Purpose This study aims to examine two innovation zones in China, including the Suzhou Industrial Park and Tianjin Eco-city, to gain a comprehensive understanding of city locations attributes and its relationship to inward foreign direct investment (FDI) from multinational enterprises (MNEs) in innovation zones embedded in nonhub cities in China. Design/methodology/approach This research incorporates two site visits and in-depth interviews with 39 personnel working with innovation zones. Thematic analysis is used to analyze interview data and documents. Findings The results highlight that cities can use innovation zones as a strategy to build high scale knowledge community precincts to connect MNEs and other global actors. As an important institutional feature of city locations, innovation zones increase within-city connectivity and connect cities in global networks resulting in cross-city connectivity to attract FDI from MNEs. From a dynamic knowledge community perspective, this research also compares active and passive approaches toward building knowledge communities and identifies several elements of knowledge communities within innovation zones in China. Research limitations/implications The research results could be further explored in other institutional and economic contexts, to understand the interplay of city locations, FDI and innovation zones, and the dynamics of building knowledge communities. Practical implications This research has several implications for policymakers and administrators who work with municipal economic development and the development and enhancement of innovation zones. It offers recommendations for MNEs to consider where to make foreign investments and the advantages innovation zones may offer to support FDI. Originality/value This research contributes to the literature related to economic development and how nonhub cities can attract FDI and join global networks. It offers empirical insights drawn from two successful innovation zones located in nonhub cities in China.

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Sister cities, cross-national FDI, and the subnational FDI location decision

Cited by 28 publications

References 88 publications

Are Chinese MNEs more strongly attracted to global cities and knowledge intensive city clusters than developed market MNEs when undertaking greenfield strategic asset seeking related FDI?

Are Chinese MNEs more strongly attracted to global cities and knowledge intensive city clusters than developed market MNEs when undertaking greenfield strategic asset seeking related FDI?

Extending the cultural-economic model of public relations through Bourdieu’s theoretical lens to inform public diplomacy efforts

Locations, city connectivity and innovation zones in China: a dynamic perspective of knowledge community

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