Journal
ASIA PACIFIC BUSINESS REVIEW
Volume 23, Issue 3, Pages 396-419Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/13602381.2016.1156295
Keywords
Consumer goods versus industrial goods industries; Internet infrastructure; market leader versus market follower; MNC expansion
Categories
Ask authors/readers for more resources
This study examines the effect of host country Internet infrastructure on a multinational corporation (MNC) foreign expansion. Using Heckman's selection model on a sample of 2589 subsidiaries of 487 Korean MNCs between 1990 and 2011, we find that host country Internet infrastructure is important in MNC expansion decisions. In addition, we find that a well-developed Internet infrastructure within a host country leads to more investments from MNCs producing consumer over industrial goods and is more attractive to domestic market followers than market leaders. We find that the host country's Internet infrastructure is important for an MNC foreign expansion decision, suggesting that efficient communication within an MNC is critical in coordinating globalized MNC subsidiary operations.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available