Location determinants for emerging market firms

Naveen K. Jain, Douglas R. Hausknecht, Debmalya Mukherjee

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

Purpose: The paper aims to understand which location determinants are relevant in a subsidiary location decision under the interaction influence of an emerging-market firm's (EMF) resource and internationalization motives. Design/methodology/approach: The paper prepares a typology of an EMF's resources which are different from those of a developed-country firm. It proceeds to argue which internationalization motives are likely to work for an EMF endowed with a specific resource. Finally, the paper posits the impact of resource and internationalization motives on the relevance of some location determinants over others in an EMF's location decision matrix. Findings: The conceptual framework proposes a relationship between EMF resources, internationalization motives and location determinants and prioritizes some location determinant(s) over others for various combinations of EMF resource and internationalization motives. Research limitations/implications: The paper contributes to the literature by proposing a unique typology of EMF resources. The overall framework informs the scholars about the importance of idiosyncratic resources as the basis of differential location decisions. Practical implications: This article presents a guiding framework for multinational managers to assess optimum location decisions on the basis of idiosyncratic firm resources and internationalization motives. Originality/value: The paper fills a scholarly gap by proposing a framework that relates firm resources and internationalization motives to location determinants. In the process, the paper also proposes a resource typology for resources unique to EMFs.

Original languageEnglish
Pages (from-to)396-418
Number of pages23
JournalManagement Decision
Volume51
Issue number2
DOIs
Publication statusPublished - Mar 2013

Keywords

  • Emerging market firm
  • Emerging markets
  • Firm performance
  • Location determinants
  • Resource and internationalization motives

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Management Science and Operations Research

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