Subnational-level government influence and FDI location choices: The moderating roles of resource dependence relations

• 成果类型: Article
• 署名作者: Yao, Fiona Kun; Xie, Luqun; Li, Jiatao; Xu, Mingrui
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; Shanghai Jiao Tong University; Hong Kong University of Science & Technology
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-022-00591-x
• 发表日期: 2023
• 页码: 1027-1054
• 关键词: FDI location choice; subnational government influence; signaling; resource dependence perspective; joint dependence; dependence asymmetry; mixed logit

摘要

By linking the resource dependence perspective with research on foreign direct investment location choices, we analyze how the dependence relationship between the home country of a multinational enterprise (MNE) and a subnational-level host location moderates the effect of local government enticement and deterrence signals on the MNE's investment in a specific location. Specifically, we differentiate between two dimensions of the dependence relationship between an MNE home country and a subnational host location joint dependence and dependence asymmetry. Moreover, we examine the directionality of dependence asymmetry by distinguishing between the dependence advantage of a home country and that of a subnational host location. A sample of foreign manufacturing ventures across cities in China from 2003 to 2017 provides the empirical context for our investigation. Joint dependence and dependence asymmetry moderate the effects of local government signals on foreign investment location decisions. Although joint dependence enhances the positive effect of government enticement signals and mitigates the negative effect of government deterrence signals on foreign investments, dependence asymmetry affects the impacts of government enticement and deterrence signals differently, depending on which actor holds the dependence advantage.