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Multinational firms' location preference for regional distribution centers: focus on the Northeast Asian region

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  • Oum, Tae Hoon
  • Park, Jong-Hun

Abstract

This paper has three main objectives: (a) to identify the major factors that multinational companies (MNCs) consider important when they decide the locations of their regional distribution centers, and (b) to understand how European and North American MNCs assess Korean cities (Seoul/Incheon; Busan/Kwangyang) as potential location for their Northeast Asian distribution centers via-a-vis competing Northeast Asian cities (Tokyo/Yokohama, Osaka/Kobe, Shanghai, Beijing/Tianjin, Taipei), and (c) to identify the gaps for Korean government must fill in order to attract MNCs' distribution centers to Korea in order to achieve its pronounced goal of building a successful regional logistics hub. These objectives have been accomplished in this paper by employing three complementary methods: a careful review and summary of relevant literatures, a structured questionnaire-based survey of MNCs' distribution managers, and personal interviews with MNCs senior executives and governments officials.

Suggested Citation

  • Oum, Tae Hoon & Park, Jong-Hun, 2004. "Multinational firms' location preference for regional distribution centers: focus on the Northeast Asian region," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(2), pages 101-121, March.
    • Handle: RePEc:eee:transe:v:40:y:2004:i:2:p:101-121
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    Cited by:

    1. Youngsoo An & Li Wan, 2019. "Monitoring Spatial Changes in Manufacturing Firms in Seoul Metropolitan Area Using Firm Life Cycle and Locational Factors," Sustainability, MDPI, vol. 11(14), pages 1-22, July.
    2. Carlucci, Fabio & Cirà, Andrea & Ioppolo, Giuseppe & Massari, Stefania & Siviero, Lucio, 2018. "Logistics and land use planning: An application of the ACIT indicator in European port regions," Land Use Policy, Elsevier, vol. 75(C), pages 60-69.
    3. Hong, Junjie & CHIN, Anthony T.H., 2007. "Modeling the location choices of foreign investments in Chinese logistics industry," China Economic Review, Elsevier, vol. 18(4), pages 425-437.
    4. Adelheid Holl & Ilaria Mariotti, 2018. "The Geography of Logistics Firm Location: The Role of Accessibility," Networks and Spatial Economics, Springer, vol. 18(2), pages 337-361, June.
    5. Lu, Chin-Shan & Yang, Ching-Chiao, 2007. "An evaluation of the investment environment in international logistics zones: A Taiwanese manufacturer's perspective," International Journal of Production Economics, Elsevier, vol. 107(1), pages 279-300, May.
    6. Chang, Yu-Hern & Yeh, Chung-Hsing & Wang, Shih-Yi, 2007. "A survey and optimization-based evaluation of development strategies for the air cargo industry," International Journal of Production Economics, Elsevier, vol. 106(2), pages 550-562, April.
    7. Lucía Isabel García Cebrián & Antonio Muñoz Porcar, 2010. "Potencial de las comarcas aragonesas para la localización industrial. Implicaciones para las autoridades públicas," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 2, pages 177-197.
    8. Cheng, Yung-Hsiang & Tsai, Yi-Ling, 2009. "Factors influencing shippers to use multiple country consolidation services in international distribution centers," International Journal of Production Economics, Elsevier, vol. 122(1), pages 78-88, November.
    9. Kai Li & Yunzhi Zhang & Wensi Wang & Yonglei Jiang & Hexin Zhang, 2022. "Spatial location of new foreign firms in Shanghai under the transformation of urban development," Bulletin of Economic Research, Wiley Blackwell, vol. 74(2), pages 405-420, April.
    10. Tsekeris, Theodore, 2016. "Interregional trade network analysis for road freight transport in Greece," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 85(C), pages 132-148.
    11. Liu, Sijing & He, Nannan & Cao, Xindan & Li, Guoqi & Jian, Ming, 2022. "Logistics cluster and its future development: A comprehensive research review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    12. Ohashi, Hiroshi & Kim, Tae-Seung & Oum, Tae Hoon & Yu, Chunyan, 2005. "Choice of air cargo transshipment airport: an application to air cargo traffic to/from Northeast Asia," Journal of Air Transport Management, Elsevier, vol. 11(3), pages 149-159.
    13. Li, Deqiang & Zhao, Laijun & Wang, Chenchen & Sun, Wenjun & Xue, Jian, 2018. "Selection of China’s imported grain distribution centers in the context of the Belt and Road initiative," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 16-34.
    14. Kinra, Aseem, 2015. "Environmental complexity related information for the assessment of country logistics environments: Implications for spatial transaction costs and foreign location attractiveness," Journal of Transport Geography, Elsevier, vol. 43(C), pages 36-47.
    15. Claudio Quintano & Paolo Mazzocchi & Antonella Rocca, 2020. "A competitive analysis of EU ports by fixing spatial and economic dimensions," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-19, December.
    16. Feng, Cheng-Min & Wu, Pei-Ju, 2009. "A tax savings model for the emerging global manufacturing network," International Journal of Production Economics, Elsevier, vol. 122(2), pages 534-546, December.
    17. Bertha Maya Sopha & Sekar Sakti & Ari Carisza Graha Prasetia & Marselina Winda Dwiansarinopa & Kevin Cullinane, 2021. "Simulating long-term performance of regional distribution centers in archipelagic logistics systems," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(4), pages 697-725, December.
    18. Hong, Junjie, 2007. "Transport and the location of foreign logistics firms: The Chinese experience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(6), pages 597-609, July.
    19. Chiou, Tzu-Yun & Chan, Hing Kai & Lettice, Fiona & Chung, Sai Ho, 2011. "The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 822-836.
    20. Hilmola, Olli-Pekka & Lorentz, Harri, 2010. "Warehousing in Europe - Northern actor perspective," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 45, pages 15-33.
    21. Halaszovich, Tilo F. & Kinra, Aseem, 2020. "The impact of distance, national transportation systems and logistics performance on FDI and international trade patterns: Results from Asian global value chains," Transport Policy, Elsevier, vol. 98(C), pages 35-47.
    22. Junjie Hong, 2007. "Location Determinants and Patterns of Foreign Logistics Services in Shanghai, China," The Service Industries Journal, Taylor & Francis Journals, vol. 27(4), pages 339-354, June.

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