publication . Article . 2012

Local sourcing of multinational enterprises in China

Wei, Y.; Liu, Xiaming; Wang, C.; Wang, J.;
Open Access
  • Published: 21 Sep 2012 Journal: International Journal of Emerging Markets, volume 7, pages 364-382 (issn: 1746-8809, Copyright policy)
  • Publisher: Emerald
  • Country: United Kingdom
Purpose – Local sourcing from indigenous firms by multinational enterprises (MNEs) is an important channel through which the former may benefit from the positive externalities generated by the latter. The purpose of this study is to analyze the extent and determinants of local sourcing of MNEs.\ud \ud Design/methodology/approach – Employing a survey dataset covering 493 multinational subsidiaries in China during 1999-2005, this paper applies the two-limit Tobit model.\ud \ud Findings – It is found that an MNE's local sourcing decision is influenced by its strategies, characteristics such as size and learning ability and country-of-origin. More specifically, expo...
free text keywords: Industrial organization, Capacity building, Multinational corporation, Tobit model, Commerce, Subsidiary, Economics, Foreign direct investment, Indigenous, Marketing, Externality, China, man

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