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- Title
TYPES OF FIRMS GENERATING NETWORK EXTERNALITIES AND MNC'S CO-LOCATION DECISIONS.
- Authors
Sea-Jin Chang; Park, Sekeun
- Abstract
This study identifies and examines sources of network externalities that influence MNCs to agglomerate their foreign operations in specific regions. Using data for Korean firms that invested in China, this study found that network externalities were sensitive to the types of firms constituting a regional network. It also found stronger network externalities within firms than across firms, from firms of the same nationality than from those of different nationalities, and from firms in the same industry than from those of different industries. As we defined the types of firms more precisely, distinctive curvilinear relationships between network externalities and the likelihood of co-location emerged.
- Subjects
INTERNATIONAL business enterprises; FOREIGN investments; LOCATION analysis; BUSINESS networks; EXTERNALITIES; ORGANIZATIONAL sociology research; KOREAN corporations; BUSINESS conditions; MARKET entry; STRATEGIC planning; MANAGEMENT
- Publication
Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009, 2005, Vol 26, Issue 7, p595
- ISSN
0143-2095
- Publication type
Article
- DOI
10.1002/smj.464