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Regional Motives for Post-Entry Subsidiary Development: The Case of Poland

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  • Agnieszka Chidlow

    ()

  • Christine Holmstrom-Lind

    ()

  • Ulf Holm

    ()

  • Heinz Tuselmann

    ()

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    Abstract

    The issue of location-specific factors of a multinational company’s activities has long been investigated by international business scholars. To our knowledge, however, all these studies have put attention on the pre-entry location decision of foreign subsidiaries, rather than the post-entry decision. As such, by incorporating a regional perspective into the study of a subsidiary’s development this work offers an understanding of the importance of location-specific factors for the post-entry development of a multinational company’s subsidiaries at the regional level. The empirical analysis, used in this work, utilises a discrete-choice model with primary data from an online survey of 91 foreign-owned subsidiaries in Poland. The results demonstrate that the Mazowieckie region is the most attractive location for post-entry subsidiary development if knowledge-seeking factors are important to MNCs. Further, the findings indicate that South-East and South-West regions are more favoured for post-entry subsidiary development when efficiency-seeking factors are important to multinational companies. The findings also show that none of the examined regions are significant for the post-entry subsidiary’s development if agglomerations factors and infrastructure are important to multinational companies.

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    File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp1034.pdf
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    Bibliographic Info

    Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp1034.

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    Length: pages
    Date of creation: 01 Jun 2012
    Date of revision:
    Handle: RePEc:wdi:papers:2012-1034

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    Keywords: international business; subsidiary development; regional motives; transition context;

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