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

Author

Listed:
  • Agnieszka Chidlow

    ()

  • Christine Holmstrom-Lind

    ()

  • Ulf Holm

    ()

  • Heinz Tuselmann

    ()

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.

Suggested Citation

  • 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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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/133051/1/wp1034.pdf
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    More about this item

    Keywords

    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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