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Institutional factors and subnational location choice for multinationals’ R&D subsidiaries

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  • Christian Falaster
  • Manuel Portugal Ferreira

Abstract

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 location-specific analysis that contrasts to the usual country-level observation on the determinants of firms’ location decisions.

Suggested Citation

  • Christian Falaster & Manuel Portugal Ferreira, 2020. "Institutional factors and subnational location choice for multinationals’ R&D subsidiaries," Innovation & Management Review, Emerald Group Publishing Limited, vol. 17(4), pages 351-367, August.
    • Handle: RePEc:eme:inmrpp:inmr-08-2019-0102
    DOI: 10.1108/INMR-08-2019-0102
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    Cited by:

    1. Fodouop Kouam Arthur William, 2024. "Navigating the Relocation Trend: The Rising Shift of Multinational Corporations from China to Other Countries," International Journal of Science and Business, IJSAB International, vol. 34(1), pages 62-75.

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