Institutional factors and subnational location choice for multinationals’ R&D subsidiaries
DOI:
https://doi.org/10.1108/INMR-08-2019-0102Keywords:
Location choice, Regional differences, IInstitutional environment, InnovationAbstract
Purpose – Using an institution-based view, this study aims to conceptualize how sub-national institutional
characteristics are likely to explain location choice of multinationals’research and development (R&D) subsidiaries.
Design/methodology/approach – In a conceptual paper, this study explores specific institutional facets
of the regional environments within a country that are capable of explaining, at least in part, the location
choices of multinational corporations’ R&D subsidiaries.
Findings – This study thus explores the more nuanced influences of the institutional environments at a
subnational level and develops propositions to explain location choices based on the differences of the
institutional environments.
Originality/value – This study contributes to international business theory by incorporating a locationspecific analysis that contrasts to the usual country-level observation on the determinants of firms’ location
decisions.
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