MNEs' location strategies and labor standards: The role of operating and reputational considerations across industries

• 成果类型: Article
• 署名作者: Maggioni, Daniela; Santangelo, Grazia D.; Koymen-Ozer, Seda
• 署名单位: Universita Ca Foscari Venezia; Copenhagen Business School; Baskent University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-019-00231-x
• 发表日期: 2019
• 页码: 948-972
• 关键词: location choice; labor standards; reputational costs; Liability of foreignness; industry specificities

摘要

We investigate the role of local labor standards on MNEs' location decisions across different sectors and sub-national regions within a developing country. We suggest that foreign investors adopt selective location strategies in connection with specific labor standards as a result of reputational and operating considerations. Foreign firms in more hazardous sectors prefer locations with higher occupational health and safety standards because they are more exposed to reputational risks. Those in sectors with less reversible investments prefer locations with lower degrees of unionization because their lower bargaining power increases their sensitivity to operating costs. We test our arguments across 26 sub-national Turkish regions over the period 2005-2011.