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


  • Agnieszka Chidlow


  • Christine Holmstrom-Lind


  • Ulf Holm


  • Heinz Tuselmann



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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  • Agnieszka Chidlow & Christine Holmstrom-Lind & Ulf Holm & Heinz Tuselmann, 2012. "Regional Motives for Post-Entry Subsidiary Development: The Case of Poland," William Davidson Institute Working Papers Series wp1034, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:2012-1034

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    References listed on IDEAS

    1. Bat Batjargal, 2007. "Network triads: transitivity, referral and venture capital decisions in China and Russia," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(6), pages 998-1012, November.
    2. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters,in: Understanding the Process of Economic Change Princeton University Press.
    3. Aidis, Ruta & Estrin, Saul & Mickiewicz, Tomasz, 2008. "Institutions and entrepreneurship development in Russia: A comparative perspective," Journal of Business Venturing, Elsevier, vol. 23(6), pages 656-672, November.
    4. Batjargal, Bat, 2007. "Internet entrepreneurship: Social capital, human capital, and performance of Internet ventures in China," Research Policy, Elsevier, vol. 36(5), pages 605-618, June.
    5. Andrei Shleifer & Daniel Treisman, 2005. "A Normal Country: Russia After Communism," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 151-174, Winter.
    6. Batjargal, Bat, 2007. "Comparative Social Capital: Networks of Entrepreneurs and Venture Capitalists in China and Russia," Management and Organization Review, Cambridge University Press, vol. 3(03), pages 397-419, November.
    7. Simeon Djankov & Yingyi Qian & Gérard Roland & Ekaterina Zhuravskaya, 2006. "Entrepreneurship in China and Russia Compared," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 352-365, 04-05.
    8. repec:hrv:faseco:33078568 is not listed on IDEAS
    9. Bat Batjargal, 2007. "Comparative Social Capital: Networks of Entrepreneurs and Venture Capitalists in China and Russia," Management and Organization Review, The International Association for Chinese Management Research, vol. 3(3), pages 397-419, November.
    10. Wouter Stam, 2010. "Industry Event Participation and Network Brokerage among Entrepreneurial Ventures," Journal of Management Studies, Wiley Blackwell, vol. 47(4), pages 625-653, June.
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    More about this item


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

    JEL classification:

    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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