Castellani, Davide, Lavoratori, Katiuscia, Perri, Alessandra and Scalera, Vittoria G. (2022) International connectivity and the location of multinational enterprises' knowledge‐intensive activities : evidence from US metropolitan areas. Global Strategy Journal, 12 (1). pp. 82-107. doi:10.1002/gsj.1404

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Abstract

Research summary:
International connectivity is a multidimensional construct that plays a pivotal role in attracting the activities of multinational enterprises (MNEs) by facilitating intra-firm coordination and access to external resources. We conceptualize how the different dimensions of international connectivity determine the location of MNEs' knowledge-intensive activities, with a focus on Research and Development (R&D) laboratories and Headquarter units (HQ). By analyzing 3,101 greenfield investments of MNEs in US Metropolitan Statistical Areas, we show that R&D activities are attracted toward areas connected to the rest of the world by international networks of inventors. Moreover, we find that infrastructures which ensure the mobility of people across borders, and greater connectivity through advanced producer services are key location factors for HQ activities.

Managerial summary:
The choice of where multinational enterprises (MNEs) locate their knowledge-intensive activities is a crucial decision for managers, with important implications for policymakers. It has become increasingly clear that MNEs value the extent to which individual locations are connected globally. We study this international connectivity and highlight that it is a multidimensional construct spanning knowledge, infrastructure, and producer service networks. This study shows that not every dimension of international connectivity is equally important for MNEs in locating different knowledge-intensive activities. Research and Development laboratories are attracted toward areas connected worldwide by international networks of inventors. Moreover, headquarter units are more likely to be established in locations featuring greater connectivity through the mobility of people and advanced producer services.

Item Type:	Journal Article
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HT Communities. Classes. Races
Divisions:	Faculty of Social Sciences > Warwick Business School > Strategy & International Business Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH):	International business enterprises , International business enterprises -- United States, Metropolitan areas -- United States, Industrial location -- United States, Business networks -- United States, Interorganizational relations -- United States, Industrial clusters -- United States
Journal or Publication Title:	Global Strategy Journal
Publisher:	John Wiley & Sons Ltd.
ISSN:	2042-5791
Official Date:	February 2022
Dates:	Date Event February 2022 Published 28 May 2021 Available 26 April 2021 Accepted
Volume:	12
Number:	1
Page Range:	pp. 82-107
DOI:	10.1002/gsj.1404
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Open Access
RIOXX Funder/Project Grant:	Project/Grant ID RIOXX Funder Name Funder ID ES/S002278/1 [ESRC] Economic and Social Research Council http://dx.doi.org/10.13039/501100000269 016.Veni.195.412/6817 [NWO] Nederlandse Organisatie voor Wetenschappelijk Onderzoek http://dx.doi.org/10.13039/501100003246 UNSPECIFIED Henley Business School.‏ ‎John H. Dunning Centre for International Business http://viaf.org/viaf/41147905322579092807

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