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

26 Pages Posted: 14 Dec 2012

See all articles by Agnieszka Chidlow

Agnieszka Chidlow

University of Birmingham - Birmingham Business School

Christine Holmstrom-Lind

Uppsala University

Ulf Holm

Uppsala University

Heinz Tuselmann

Manchester Metropolitan University

Date Written: June 12, 2012

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-seekingfactors are important to multinationalcompanies. 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.

Keywords: international business, subsidiary development, regional motives, transition context

JEL Classification: M19, L21, L60

Suggested Citation

Chidlow, Agnieszka and Holmstrom-Lind, Christine and Holm, Ulf and Tuselmann, Heinz, Regional Motives for Post-Entry Subsidiary Development: The Case of Poland (June 12, 2012). William Davidson Institute Working Paper No. 1034. Available at SSRN: https://ssrn.com/abstract=2188396 or http://dx.doi.org/10.2139/ssrn.2188396

Agnieszka Chidlow (Contact Author)

University of Birmingham - Birmingham Business School ( email )

Edgbaston Park Road
Birmingham, B15 2TY
United Kingdom

Christine Holmstrom-Lind

Uppsala University ( email )

Ulf Holm

Uppsala University ( email )

Heinz Tuselmann

Manchester Metropolitan University ( email )

Old Hall Lane
Manchester M14 6HR
United Kingdom

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