Host-country location decisions of early movers and latecomers: The role of local density and experiential learning
Service firms such as banks and hotels typically locate multiple foreign affiliates in the same host country. Often, these location patterns occur in waves with early movers followed by latecomers; for example, the early entries of Japanese banks into the U.S. market in the 1970s and 1980s were followed by emerging-market Asian banks in the 1990s. Using insights from the agglomeration and organizational learning literatures, we argue that local density and experiential learning affect location choices within a host country, and that these relationships differ between early movers and latecomers. We test and find support for our arguments using a sample of Asian banks in the United States over 1997–2003.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 21 (2012)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adrian E Tschoegl, 2002. "FDI and Internationalization: Evidence from U.S. Subsidiaries of Foreign Banks," Journal of International Business Studies, Palgrave Macmillan, vol. 33(4), pages 805-815, December.
- Yadong Luo & Rosalie L Tung, 2007. "International expansion of emerging market enterprises: A springboard perspective," Journal of International Business Studies, Palgrave Macmillan, vol. 38(4), pages 481-498, July.
- Petrou, Andreas, 2007. "Multinational banks from developing versus developed countries: Competing in the same arena?," Journal of International Management, Elsevier, vol. 13(3), pages 376-397, September.
- Yamori, Nobuyoshi, 1997. "Do Japanese banks lead or follow international business? An empirical investigation," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 7(4), pages 369-382, December.
- Goldberg, Lawrence G. & Grosse, Robert, 1994. "Location choice of foreign banks in the United States," Journal of Economics and Business, Elsevier, vol. 46(5), pages 367-379, December.
- Eden, Lorraine & Molot, Maureen Appel, 2002. "Insiders, outsiders and host country bargains," Journal of International Management, Elsevier, vol. 8(4), pages 359-388.
- John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
- Amel, Dean F & Rhoades, Stephen A, 1988. "Strategic Groups in Banking," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 685-89, November.
- Robert Grosse & Len J Trevino, 1996. "Foreign Direct Investment in the United States: An Analysis by Country of Origin," Journal of International Business Studies, Palgrave Macmillan, vol. 27(1), pages 139-155, March.
- Keith Head & John Ries & Deborah Swenson, 1994.
"Agglomeration Benefits and Location Choice: Evidence from Japanese Manufacturing Investment in the United States,"
NBER Working Papers
4767, National Bureau of Economic Research, Inc.
- Head, Keith & Ries, John & Swenson, Deborah, 1995. "Agglomeration benefits and location choice: Evidence from Japanese manufacturing investments in the United States," Journal of International Economics, Elsevier, vol. 38(3-4), pages 223-247, May.
- Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 23-32, March.
- Ulgado, Francis M. & Lee, Moonkyu, 2004. "The effects of nationality differences on manufacturing location in the US: a conjoint analysis approach," International Business Review, Elsevier, vol. 13(4), pages 503-522, August.
- John P. Segala, 1979. "A summary of the International Banking Act of 1978," Economic Review, Federal Reserve Bank of Richmond, issue Jan, pages 16-21.
- Hasegawa, Toshiaki, 1993. "Commercial banking in the United States: Japanese Commercial banks' presence," Journal of Asian Economics, Elsevier, vol. 4(2), pages 419-428.
- Berger, Allen N, 1995. "The Profit-Structure Relationship in Banking--Tests of Market-Power and Efficient-Structure Hypotheses," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(2), pages 404-31, May.
- Mutinelli, Marco & Piscitello, Lucia, 2001. "Foreign direct investment in the banking sector: the case of Italian banks in the '90s," International Business Review, Elsevier, vol. 10(6), pages 661-685, December.
- Wilbur Chung & Juan Alcácer, 2002. "Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States," Management Science, INFORMS, vol. 48(12), pages 1534-1554, December.
- Huang, Ying & Sternquist, Brenda, 2007. "Retailers' foreign market entry decisions: An institutional perspective," International Business Review, Elsevier, vol. 16(5), pages 613-629, October.
- Wilbur Chung & Jaeyong Song, 2004. "Sequential Investment, Firm Motives, and Agglomeration of Japanese Electronics Firms in the United States," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(3), pages 539-560, 09.
- Majocchi, Antonio & Presutti, Manuela, 2009. "Industrial clusters, entrepreneurial culture and the social environment: The effects on FDI distribution," International Business Review, Elsevier, vol. 18(1), pages 76-88, February.
- Wu, Xiaohong & Strange, Roger, 2000. "The location of foreign insurance companies in China," International Business Review, Elsevier, vol. 9(3), pages 383-398, June.
- Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October.
- Herriott, Scott R & Levinthal, Daniel & March, James G, 1985. "Learning from Experience in Organizations," American Economic Review, American Economic Association, vol. 75(2), pages 298-302, May.
- Grosse, Robert & Goldberg, Lawrence G., 1991. "Foreign bank activity in the United States: An analysis by country of origin," Journal of Banking & Finance, Elsevier, vol. 15(6), pages 1093-1112, December.
- Adrian E Tschoegl, 1987. "International Retail Banking as a Strategy: An Assessment," Journal of International Business Studies, Palgrave Macmillan, vol. 18(2), pages 67-88, June.
When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:21:y:2012:i:2:p:145-155. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.