The Drivers of Location Decision of International Business Firms within a Country: The Role of Place, Space and Organisation

2017-08-09T22:54:33Z (GMT) by Sharif Rasel
This study combines concepts from international business and economic geography to provide a holistic framework for understanding firm-location interplay in within-country location decisions. It examines both capability and internalisation motivations as firm-level heterogeneity that moderates the effects of locational factors on location choice. This study finds that a firm’s capability does not diminish the importance of inter-firm connectedness, but rather, capability reduces the importance of inherent characteristics of a location and thereby negatively moderates the firm’s likelihood of selecting a cluster. Internalisation advantages increase the importance of inter-firm connectedness and positively moderates its likelihood of selecting a cluster.