Abstract: Extending the extant literature on the Country-of-Origin Effects (COEs), we investigate spatial heterogeneity of COEs within a country and its determinants. Drawing on the literature of COEs, information economics, and geography, we maintain that COEs are heterogeneous across regions within a country, which bears important implications for the choices of location and entry modes; and geographic distance plays a significant role in driving the spatial heterogeneity in COEs. Empirical analysis corroborates the main thesis of the current study: COEs of automakers from Korea, Japan, and Europe are heterogeneous across regions in the US; increasing distance from the country-of-origin exerts negative influences on COEs; and (3) increasing number of the dealerships of the automakers mitigates the detrimental effects of geographic distance.

Abstract: Liability of regional foreignness (LORF), which refers to the idea that the cost of doing business abroad is substantially lower within than outside the home-region, is a central concept underlying the theory of the regional multinational enterprise (MNE). However, the validity of LORF remains contested because the concept and measurement of LORF have remained underdeveloped. The purpose of the paper is to consolidate the link between the concept and measure of LORF and empirically assess its impact on MNE activities with special attention to firm-specific advantage. Using a sample of 158 Global Fortune 500 firms, we find that LORF constrains the geographic scope of MNEs yet those with stronger non-location bound FSAs tend to be less limited by LORF. We draw implications and significance of our findings for regionalization research as well as international business research in general.

Abstract: Reversing the offshoring of manufacturing has become an integral part of government’s policy to restore innovation capability, retain jobs, and rebalance the economy from an over-reliance on service sectors. Some companies have begun to rethink their manufacturing location decisions and reverse offshoring by bringing home their manufacturing. This paper uses insight from executives from manufacturing companies collected via in-depth interviews to develop a refined and more detailed understanding of the value of manufacturing and assess if and why companies are reversing their offshoring of manufacturing. By studying how companies create value from manufacturing this paper offers a framework for companies to reevaluate their manufacturing location decisions.