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

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

Research output: Book Chapters | Papers in Conference ProceedingsConference paper (refereed)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 languageEnglish
Title of host publicationAsian businesses in a turbulent environment : uncertainty and coping strategies
EditorsT. S. CHAN, Geng CUI
PublisherPalgrave Macmillan
Pages65-91
Number of pages27
ISBN (Print)9781137488855
DOIs
Publication statusPublished - 2016
Event2015 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 20155 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

Conference2015 Academy of International Business Southeast Asia regional conference
Abbreviated titleAIBSEAR 2015
CountryMalaysia
CityPenang
Period3/12/155/12/15
Internet address

Fingerprint Dive into the research topics of 'Cultural distance, host regulatory quality, and location choice : a hierarchical analysis of Chinese multinationals'. Together they form a unique fingerprint.

Cite this