The hassle factor: An explanation for managerial locational shunning

  • Andreas Schotter*
  • , Paul W. Beamish
  • *Korrespondierende*r Autor*in für diese Arbeit

Publikation: Beitrag in Buch/KonferenzbandBeitrag in Sammelwerk

Abstract

This study investigates the widely overlooked phenomenon of multinational enterprise (MNE) location avoidance, utilizing a multi-method research design and data on 131 foreign investment locations. It complements economic-choicebased location research by adding contextual dimensions at the country level that matter to managers personally, and affect decisions at the firm level.We provide a connection between international business research, the behavioral stream in economic geography, and the microfoundations stream in the strategic management literature. The results suggest that, in addition to traditional location choice criteria (including investment potential, internationalization strategy, and various geographic and psychic distances), foreign location decisions in MNEs are influenced by how troublesome it is for managers to travel to or live in certain places. An 11-item measure composed of travel inconveniences shows a significant negative moderating effect on the relationship between foreign direct investment potential and investment intensity. The effect is stronger for nonresource-seeking industries. We call this phenomenon the "hassle factor".

OriginalspracheEnglisch
Titel des SammelwerksLocation of International Business Activities
Untertitel des SammelwerksIntegrating Ideas from Research in International Business, Strategic Management and Economic Geography
VerlagPalgrave Macmillan
Seiten181-225
Seitenumfang45
ISBN (elektronisch)9781137472311
ISBN (Print)9781137472304
DOIs
PublikationsstatusVeröffentlicht - 2 Dez. 2014
Extern publiziertJa

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