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Developmental and Quiescent Subsidiaries in the Asia Pacific: Evidence from Hong Kong, Singapore, Shanghai, and Sydney

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  • Jessie P. H. Poon
  • Edmund R. Thompson

Abstract

Examining “embedded” economic and social relations has become a popular theme among economic geographers who are interested in explaining the durability of place in supporting economic activities. This article explores the relationship between embeddedness and technology-oriented functions among three types of subsidiaries (regional headquarters, regional offices, and local offices) and for four cities: Hong Kong, Shanghai, Singapore, and Sydney. Using survey data from firms, we show that quiescent or branch plant-like subsidiaries, rather than developmental firms, dominate the region. But among developmental subsidiaries, returns on embeddedness are not always obvious. Embeddedness and developmental subsidiaries are most significantly correlated with manufacturing regional headquarters. However, a small group of subsidiaries (local and regional offices) also perform developmental functions, despite their relative newness and lack of embed-dedness in the region.

Suggested Citation

  • Jessie P. H. Poon & Edmund R. Thompson, 2003. "Developmental and Quiescent Subsidiaries in the Asia Pacific: Evidence from Hong Kong, Singapore, Shanghai, and Sydney," Economic Geography, Taylor & Francis Journals, vol. 79(2), pages 195-214, April.
    • Handle: RePEc:taf:recgxx:v:79:y:2003:i:2:p:195-214
    DOI: 10.1111/j.1944-8287.2003.tb00208.x
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    Cited by:

    1. Bas Karreman & Martijn J. Burger & Frank G. van Oort, 2017. "Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities," Economic Geography, Taylor & Francis Journals, vol. 93(2), pages 131-161, March.
    2. Yifei Sun & Debin Du, 2011. "Domestic Firm Innovation and Networking with Foreign Firms in China's ICT Industry," Environment and Planning A, , vol. 43(4), pages 786-809, April.
    3. Bruno Amann & Jacques Jaussaud & Johannes Schaaper, 2014. "Clusters and Regional Management Structures by Western MNCs in Asia: Overcoming the Distance Challenge," Management International Review, Springer, vol. 54(6), pages 879-906, December.

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