Work

Location strategy of emerging economy multinational enterprise

Year: 2025

Type: article

Abstract: This study investigates how state ownership, institutional diversity across subnational regions, and institutional instability shape the location strategies of emerging economy multinationals (EMNEs). The results show that state ownership significantly promotes EMNEs' foreign direct investments (FDIs) in non-home regions and developed countries. Furthermore, EMNEs originating from less institutionally developed regions exhibit a stronger preference for FDIs outside their home regions. While EMNEs often exhibit path dependence in their location choices, this effect diminishes in more dynamic institutional environments. These findings contribute to a better understanding of EMNEs' strategic decision-making processes and highlight the importance of considering institutional factors in internationalization strategies.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104121

Authors: Lin Li, Le Du

Institutions: Zhejiang Wanli University, Dongbei University of Finance and Economics

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,930