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A model for international production relocation: Multinationals' operational flexibility and requirements at production plant level

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  • Lampón, Jesús F.
  • Cabanelas, Pablo
  • Carballo-Cruz, Francisco

Abstract

This paper reviews location theory to formulate a model for international relocation of production. The results highlight the role of internal factors and the appropriateness of the behavioural approach of location theory for explaining international production relocation. From a theoretical standpoint, the operational flexibility of multinational enterprises for transferring resources internationally proposes a transition from an economic geography perspective to a managerial perspective. With empowered multinationals and in a context in which internal factors have a great influence on decision-making, plant level variables gain importance for improving understanding of international production mobility.

Suggested Citation

  • Lampón, Jesús F. & Cabanelas, Pablo & Carballo-Cruz, Francisco, 2017. "A model for international production relocation: Multinationals' operational flexibility and requirements at production plant level," Journal of Business Research, Elsevier, vol. 77(C), pages 95-101.
    • Handle: RePEc:eee:jbrese:v:77:y:2017:i:c:p:95-101
    DOI: 10.1016/j.jbusres.2017.04.007
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