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International operations and location decisions: a firm level approach

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  • Bert Meijboom
  • Hans Voordijk

Abstract

The purpose of this study is to acquire a better understanding of why certain production and distribution facilities remain in Western Europe, in spite of economic globalisation. This paper focuses on companies located in the Netherlands but acting on an international scale. The issue is not addressed at a sectoral, regional, or even more aggregate level‐of‐analysis. Instead, the firm is the unit‐of‐analysis, which is why exploratory cases were conducted. The notion of strategic role (Ferdows 1989, 1997) is applied to assess internal motives for staying. The effect of external factors on individual facilities that differ with respect to these internal motives are also looked at. The findings suggest that facilities of high strategic importance within the multinational enterprise to which they belong have high expectations of the political/legal and macroeconomic environment. Furthermore, facilities preceding the major decoupling point in a supply chain seem to be more locationally stable than activities subsequent to this point.

Suggested Citation

  • Bert Meijboom & Hans Voordijk, 2003. "International operations and location decisions: a firm level approach," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 94(4), pages 463-476, September.
    • Handle: RePEc:bla:tvecsg:v:94:y:2003:i:4:p:463-476
    DOI: 10.1111/1467-9663.00274
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    Cited by:

    1. Golini, Ruggero & Longoni, Annachiara & Cagliano, Raffaella, 2014. "Developing sustainability in global manufacturing networks: The role of site competence on sustainability performance," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 448-459.
    2. Jan Ženka, 2009. "Delokalizace zpracovatelského průmyslu ČR (komponentní analýza) [Delocalization of czech manufacturing: which branches of manufacturing are threatened by relocation abroad?]," Politická ekonomie, Prague University of Economics and Business, vol. 2009(1), pages 79-93.
    3. Ancarani, Alessandro & Di Mauro, Carmela & Fratocchi, Luciano & Orzes, Guido & Sartor, Marco, 2015. "Prior to reshoring: A duration analysis of foreign manufacturing ventures," International Journal of Production Economics, Elsevier, vol. 169(C), pages 141-155.
    4. Cheng, Yang & Farooq, Sami, 2018. "The role of plants in manufacturing networks: A revisit and extension," International Journal of Production Economics, Elsevier, vol. 206(C), pages 15-32.
    5. Brouwer Aleid, 2010. "The Old and the Stubborn? Firm Characteristics and Relocation in the Netherlands," European Spatial Research and Policy, Sciendo, vol. 17(1), pages 41-60, June.
    6. Johansson, Malin & Olhager, Jan, 2018. "Comparing offshoring and backshoring: The role of manufacturing site location factors and their impact on post-relocation performance," International Journal of Production Economics, Elsevier, vol. 205(C), pages 37-46.
    7. Julka, Nirupam & Baines, Tim & Tjahjono, Benny & Lendermann, Peter & Vitanov, Val, 2007. "A review of multi-factor capacity expansion models for manufacturing plants: Searching for a holistic decision aid," International Journal of Production Economics, Elsevier, vol. 106(2), pages 607-621, April.
    8. Jan Ženka & Vladislav Čadil, 2009. "Regional distribution of technology-intensive manufacturing industries in the czech republic with an accent on risk of delocalisation," Prague Economic Papers, Prague University of Economics and Business, vol. 2009(1), pages 61-77.

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