Media Coverage and Location Choice

Strategic Management Journal, Volume 35, Issue 4, April 2014, Pages: 596-605

19 Pages Posted: 26 Sep 2015 Last revised: 8 Oct 2015

See all articles by Elena Kulchina

Elena Kulchina

Duke University; Duke Innovation & Entrepreneurship Initiative

Date Written: 2014

Abstract

Emphasizing the importance of informed location choice, prior strategy research has examined how private information about locations affects foreign direct investment. Publicly available media information has received little attention, however, perhaps because its impact on location choice is expected to be trivial. This study examines the relationship between the extent of a location’s media coverage and the number of entering foreign firms in Russia, using a novel instrumental variable for media coverage, a major anniversary of a city’s establishment date. The results suggest that extensive foreign media coverage of a city increases the number of foreign entrants. This effect is stronger for firms with less private information about Russian cities; i.e., more socially and geographically distant firms and foreign entrepreneurs.

Keywords: foreign entry, location search, public information, media information, foreign direct investment

Suggested Citation

Kulchina, Elena, Media Coverage and Location Choice (2014). Strategic Management Journal, Volume 35, Issue 4, April 2014, Pages: 596-605 . Available at SSRN: https://ssrn.com/abstract=2665239

Elena Kulchina (Contact Author)

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

Duke Innovation & Entrepreneurship Initiative

215 Morris St., Suite 300
Durham, NC 27701
United States

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