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Location moving decision of Taiwan's multinational companies in China: An observation from institutional theory

Institutional environments and the following institutional factors are viewed as the important characteristics in examining firm¡¦s strategic choices as well as the firm¡¦s endogenous resources and the industrial factors. In addressing the multinational company¡¦s location choices issues, institutional factor and the MNC¡¦s reactive strategies are seldom examined since the data limitation. This research tries to discuss the possible institutional sources impact on multinational company¡¦s location choices in China from the institutional theory viewpoint. There are giant institutional transitions in China since the open-market policies in the early 1990s. The announcement of the 12th ¡§five year plan¡¨ in China has estimated to generate great impact on multinational company¡¦s location choices. Thus, this research tries to addressing the multinational company¡¦s location choice issues in China context.
Utilizing the in-depth interviewing method from Taiwanese multinational companies, this research supports the arguments from the institutional theory in location choice issues. In that, the higher coercive forces, or the formal forces instead, in a host country, the more likely that the multinational company will choose the acquiesce strategy to move. Moreover, the multinational company¡¦s acquiesce strategy in reaction will also generate economic side-effect in decision-making process. Additionally, in deciding the new location choice, the formal as well as the informal institutional forces will generate impact in multinational company¡¦s location choice, as argued from revised eclectic paradigm. The results provide a beginning in addressing location choice issues in China from the institutional viewpoint.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0724112-003635
Date24 July 2012
CreatorsCheng, Peng-jen
ContributorsCher-min Fong, Kuang-Shih Yeh, Hui-yun Yu, Hsi-mei Chung
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0724112-003635
Rightsuser_define, Copyright information available at source archive

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