Does subnational region matter? Foreign affiliate performance in the United states and China

Christine M. Chan, Shige Makino, Takehiko Isobe

Research output: Contribution to journalArticlepeer-review

226 Citations (Scopus)

Abstract

This study examines the extent to which subnational regions can explain foreign affiliate performance in two host country settings, the United States and China, the world's two largest economies at polar ends of the economic spectrum (i.e., an advanced versus an emerging economy). Our results suggest that the subnational region is significant in explaining foreign affiliate performance, thus confirming its importance as an additional unit of analysis for firm performance. This study also shows that the effects of subnational region are far stronger in China than they are in the United States, thus suggesting that regional differences are more critical in their explanatory power for firm performance in emerging economies than they are in advanced economies.

Original languageEnglish
Pages (from-to)1226-1243
Number of pages18
JournalStrategic Management Journal
Volume31
Issue number11
DOIs
Publication statusPublished - 2010 Nov

Keywords

  • Japanese multinationals
  • cross-national comparison
  • emerging economies
  • foreign affiliate performance
  • institutional environments
  • subnational region

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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