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A model for international production relocation: Multinationals' operational flexibility and requirements at production plant level

Jesús Lampón (), Pablo Cabanelas and Carballo-Cruz, Francisco

Journal of Business Research, 2017, vol. 77, issue C, 95-101

Abstract: This paper reviews location theory to formulate a model for international relocation of production. The results highlight the role of internal factors and the appropriateness of the behavioural approach of location theory for explaining international production relocation. From a theoretical standpoint, the operational flexibility of multinational enterprises for transferring resources internationally proposes a transition from an economic geography perspective to a managerial perspective. With empowered multinationals and in a context in which internal factors have a great influence on decision-making, plant level variables gain importance for improving understanding of international production mobility.

Keywords: International production relocation model; Location theory; Multinational enterprises; Operational flexibility; Production plant requirements (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:eee:jbrese:v:77:y:2017:i:c:p:95-101