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

Agnieszka Chidlow (), Christine Holmstrom-Lind (), Ulf Holm () and Heinz Tuselmann ()

No wp1034, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

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-seeking factors are important to multinational companies. 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 (search for similar items in EconPapers)
JEL-codes: L21 L60 M19 (search for similar items in EconPapers)
Pages: pages
Date: 2012-06-01
New Economics Papers: this item is included in nep-dcm and nep-tra
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