The Effects of Location and MNC Attributes on MNCs' Establishment of Foreign R&D Centers: Evidence from China. Issue 5 (October 2016)

• Record Type: Journal Article
• Authors: Holmes, R. Michael; Li, Haiyang; Hitt, Michael A.; DeGhetto, Kaitlyn; Sutton, Trey
• Is Part Of: Long range planning. Volume 49:Issue 5(2016)
• Page Start: 594
• Page End: 613
• Publication Date: 2016-10
• Subjects: Management -- Periodicals; Business planning -- Periodicals; Gestion -- Périodiques; Management; Periodicals; 658.4012
• DOI: 10.1016/j.lrp.2015.07.001
• Languages: English
• ISSNs: 0024-6301

Abstract

Abstract : This study examines factors affecting MNCs' establishment of R&D centers in China (i.e., China R&D centers). We argue that China offers not only location advantages (e.g., economic growth) that encourage MNCs to establish R&D centers there, but also location disadvantages (e.g., weak intellectual property protection) that discourage MNCs from doing so. Examining a sample of China R&D centers established by U.S. MNCs over fifteen years, we find that China's location advantages and location disadvantages have both independent and joint effects on MNCs' establishment of China R&D centers. We also find that MNC attributes moderate these effects.