{"title":"The impact of global city location intensity on MNE performance: Leveraging learning and connectivity","authors":"Helen S. Du, Ana Colovic","doi":"10.1016/j.lrp.2023.102409","DOIUrl":null,"url":null,"abstract":"<div><p>Building on recent international business research that embraces insights from economic geography, we hypothesise that MNEs locating a high share of the total number of their subsidiaries in global cities (which we conceptualize as global city location intensity) exhibit higher financial performance. We further argue that knowledge-intensive firms benefit more from global city location intensity than less knowledge-intensive firms. We also posit that multinationality (international geographic dispersion) negatively moderates the relationship between global city location intensity and financial performance. We test our hypotheses on a sample of 497 MNEs and find strong support for our predictions. We contribute to the literature by introducing the notion of intensity into the relationship between global city locations and financial performance and call for considering scale effects when examining locational decisions and their consequences.</p></div>","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"57 1","pages":"Article 102409"},"PeriodicalIF":7.4000,"publicationDate":"2024-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Long Range Planning","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0024630123001164","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
Building on recent international business research that embraces insights from economic geography, we hypothesise that MNEs locating a high share of the total number of their subsidiaries in global cities (which we conceptualize as global city location intensity) exhibit higher financial performance. We further argue that knowledge-intensive firms benefit more from global city location intensity than less knowledge-intensive firms. We also posit that multinationality (international geographic dispersion) negatively moderates the relationship between global city location intensity and financial performance. We test our hypotheses on a sample of 497 MNEs and find strong support for our predictions. We contribute to the literature by introducing the notion of intensity into the relationship between global city locations and financial performance and call for considering scale effects when examining locational decisions and their consequences.
期刊介绍:
Long Range Planning (LRP) is an internationally renowned journal specializing in the field of strategic management. Since its establishment in 1968, the journal has consistently published original research, garnering a strong reputation among academics. LRP actively encourages the submission of articles that involve empirical research and theoretical perspectives, including studies that provide critical assessments and analysis of the current state of knowledge in crucial strategic areas. The primary user base of LRP primarily comprises individuals from academic backgrounds, with the journal playing a dual role within this community. Firstly, it serves as a platform for the dissemination of research findings among academic researchers. Secondly, it serves as a channel for the transmission of ideas that can be effectively utilized in educational settings. The articles published in LRP cater to a diverse audience, including practicing managers and students in professional programs. While some articles may focus on practical applications, others may primarily target academic researchers. LRP adopts an inclusive approach to empirical research, accepting studies that draw on various methodologies such as primary survey data, archival data, case studies, and recognized approaches to data collection.