Location determinant and MNE’s performance: A modeling test in the China’s automobile industry

Min Renne

China Economic Journal, 2017, vol. 10, issue 3, 319-340

Abstract: This paper argues that the location strategy is an important successful condition for multinational enterprise’s investment in China. We conduct a location–performance model for multinationals in China, which is tested using a structural equation modeling approach on a sample of 216 joint ventures of automobile multinational enterprises in China. We find that the relationship between the location determinant and multinational performance is significant and positive, and which is supported by the local partner’s performance.

Date: 2017
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DOI: 10.1080/17538963.2017.1370155

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