Cultural distance, host regulatory quality, and location choice : a hierarchical analysis of Chinese multinationals

Geng CUI; Xiaolin LI; Ling PENG; Tsang Sing CHAN

doi:10.1057/978-1-137-48887-9_4

Cultural distance, host regulatory quality, and location choice : a hierarchical analysis of Chinese multinationals

Geng CUI, Xiaolin LI, Ling PENG, Tsang Sing CHAN

Department of Marketing and International Business

Research output: Book Chapters | Papers in Conference Proceedings › Conference paper (refereed) › Research › peer-review

Abstract

The research presented in this chapter investigates the effect of both host and home institutional factors on emerging market multinational corporations’ choice of location for overseas investments. Drawing from prospect theory and recent theoretical development, we propose that cultural distance and host regulatory quality contribute to the attractiveness of a country, while home government relationship moderates the effect of host regulatory quality, and such effects vary across countries at different stages of economic development. Based on the data from overseas subsidiaries of Chinese multinational corporations, both cultural distance and host regulatory quality positively affect location choice. For less developed countries, there is a negative interaction between cultural distance and host regulatory quality, and home government relationship positively moderates the effect of host regulatory quality.

Original language	English
Title of host publication	Asian businesses in a turbulent environment : uncertainty and coping strategies
Editors	T. S. CHAN, Geng CUI
Publisher	Palgrave Macmillan
Pages	65-91
Number of pages	27
ISBN (Print)	9781137488855
DOIs	https://doi.org/10.1057/978-1-137-48887-9_4
Publication status	Published - 2016
Event	2015 Academy of International Business Southeast Asia regional conference: Global business and consumers in a networked world - Shangri-La’s Rasa Sayang Resort & Spa , Penang, Malaysia Duration: 3 Dec 2015 → 5 Dec 2015 https://www.ln.edu.hk/hkibs/AIB/2015/aib2015/Home.html https://www.ln.edu.hk/hkibs/AIB/2015/aib2015/04-Conference%20Program.pdf

Conference

Conference	2015 Academy of International Business Southeast Asia regional conference
Abbreviated title	AIBSEAR 2015
Country/Territory	Malaysia
City	Penang
Period	3/12/15 → 5/12/15
Internet address	https://www.ln.edu.hk/hkibs/AIB/2015/aib2015/Home.html https://www.ln.edu.hk/hkibs/AIB/2015/aib2015/04-Conference%20Program.pdf

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10.1057/978-1-137-48887-9_4

Cite this

@inproceedings{7648c0ab53e34f81b59d3a1b7a4a2e8b,

title = "Cultural distance, host regulatory quality, and location choice : a hierarchical analysis of Chinese multinationals",

abstract = "The research presented in this chapter investigates the effect of both host and home institutional factors on emerging market multinational corporations{\textquoteright} choice of location for overseas investments. Drawing from prospect theory and recent theoretical development, we propose that cultural distance and host regulatory quality contribute to the attractiveness of a country, while home government relationship moderates the effect of host regulatory quality, and such effects vary across countries at different stages of economic development. Based on the data from overseas subsidiaries of Chinese multinational corporations, both cultural distance and host regulatory quality positively affect location choice. For less developed countries, there is a negative interaction between cultural distance and host regulatory quality, and home government relationship positively moderates the effect of host regulatory quality.",

author = "Geng CUI and Xiaolin LI and Ling PENG and CHAN, {Tsang Sing}",

year = "2016",

doi = "10.1057/978-1-137-48887-9_4",

language = "English",

isbn = "9781137488855",

pages = "65--91",

editor = "CHAN, {T. S.} and Geng CUI",

booktitle = "Asian businesses in a turbulent environment : uncertainty and coping strategies",

publisher = "Palgrave Macmillan",

note = "2015 Academy of International Business Southeast Asia regional conference : Global business and consumers in a networked world, AIBSEAR 2015 ; Conference date: 03-12-2015 Through 05-12-2015",

url = "https://www.ln.edu.hk/hkibs/AIB/2015/aib2015/Home.html, https://www.ln.edu.hk/hkibs/AIB/2015/aib2015/04-Conference%20Program.pdf",

}

CUI, G, LI, X, PENG, L & CHAN, TS 2016, Cultural distance, host regulatory quality, and location choice : a hierarchical analysis of Chinese multinationals. in TS CHAN & G CUI (eds), Asian businesses in a turbulent environment : uncertainty and coping strategies. Palgrave Macmillan, pp. 65-91, 2015 Academy of International Business Southeast Asia regional conference, Penang, Malaysia, 3/12/15. https://doi.org/10.1057/978-1-137-48887-9_4

Cultural distance, host regulatory quality, and location choice : a hierarchical analysis of Chinese multinationals. / CUI, Geng; LI, Xiaolin; PENG, Ling et al.
Asian businesses in a turbulent environment : uncertainty and coping strategies. ed. / T. S. CHAN; Geng CUI. Palgrave Macmillan, 2016. p. 65-91.

Research output: Book Chapters | Papers in Conference Proceedings › Conference paper (refereed) › Research › peer-review

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T1 - Cultural distance, host regulatory quality, and location choice : a hierarchical analysis of Chinese multinationals

AU - CUI, Geng

AU - LI, Xiaolin

AU - PENG, Ling

AU - CHAN, Tsang Sing

PY - 2016

Y1 - 2016

N2 - The research presented in this chapter investigates the effect of both host and home institutional factors on emerging market multinational corporations’ choice of location for overseas investments. Drawing from prospect theory and recent theoretical development, we propose that cultural distance and host regulatory quality contribute to the attractiveness of a country, while home government relationship moderates the effect of host regulatory quality, and such effects vary across countries at different stages of economic development. Based on the data from overseas subsidiaries of Chinese multinational corporations, both cultural distance and host regulatory quality positively affect location choice. For less developed countries, there is a negative interaction between cultural distance and host regulatory quality, and home government relationship positively moderates the effect of host regulatory quality.

AB - The research presented in this chapter investigates the effect of both host and home institutional factors on emerging market multinational corporations’ choice of location for overseas investments. Drawing from prospect theory and recent theoretical development, we propose that cultural distance and host regulatory quality contribute to the attractiveness of a country, while home government relationship moderates the effect of host regulatory quality, and such effects vary across countries at different stages of economic development. Based on the data from overseas subsidiaries of Chinese multinational corporations, both cultural distance and host regulatory quality positively affect location choice. For less developed countries, there is a negative interaction between cultural distance and host regulatory quality, and home government relationship positively moderates the effect of host regulatory quality.

UR - http://commons.ln.edu.hk/sw_master/4506

U2 - 10.1057/978-1-137-48887-9_4

DO - 10.1057/978-1-137-48887-9_4

M3 - Conference paper (refereed)

SN - 9781137488855

SP - 65

EP - 91

BT - Asian businesses in a turbulent environment : uncertainty and coping strategies

A2 - CHAN, T. S.

A2 - CUI, Geng

PB - Palgrave Macmillan

T2 - 2015 Academy of International Business Southeast Asia regional conference

Y2 - 3 December 2015 through 5 December 2015

ER -

Cultural distance, host regulatory quality, and location choice : a hierarchical analysis of Chinese multinationals

Abstract

Conference

UN SDGs

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