Session 150

Location and Geography

Track G

Date: Tuesday, October 6, 2015


Time: 15:45 – 17:00


Room: Governor's Square 14

Session Chair:

  • TBD

Title: Country-of-Origin Effects: Spatial Heterogeneity in the US Auto Market


  • Minyoung Kim, University of Kansas
  • Sunghoon Kim, Arizona State University
  • Jongkuk Lee, Ewha Womans University

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.

Title: Liability of Regional Foreignness and Geographic Scope: An Empirical Assessment


  • Ruth Aguilera, Northeastern University
  • Jin Uk Kim, University of Illinois at Urbana Champaign

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.

Title: Manufacturing Location Decisions and Reversing Offshoring: The Strategic Value of Manufacturing


  • Gregory Theyel, University of Cambridge

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.

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 32: Microfoundations of international strategic management: Opportunism, trust, and bounded reliability
Sun: 09:45 – 11:00
Session 279: Formal theory in strategy - A primer
Sun: 11:15 – 12:30
Session 33: Methodological challenges in publishing international strategy research
Sun: 16:15 – 17:30
Session 209: Institutions and Emerging Markets
Sun: 17:45 – 00:00
Session 315: Global Strategy Business Meeting
Mon: 08:00 – 09:15
Session 126: Entry Mode & Cross-Border Acquisitions
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Mon: 13:45 – 15:00
Session 128: Emerging Markets
Mon: 16:45 – 18:00
Session 151: Networks and Collaborative Arrangements
Tue: 08:00 – 09:15
Session 129: Foreign Direct Investments
Tue: 11:00 – 12:15
Session 127: Institutional Context
Tue: 14:15 – 15:30
Session 266: Offshoring
Tue: 15:45 – 17:00
Session 130: International Diversification
Session 150: Location and Geography
Tue: 17:30 – 18:45
Session 208: Internationalization Strategies and Performance

Strategic Management Society