Open Access Open Access  Restricted Access Subscription Access
Cover Image

Antecedents to Location-Boundedness of an Advantage: Measurements and Empirical Investigation

Fang-Yi Lo, Chwo-Ming Joseph Yu

Abstract


 This research examines the antecedents affecting the location-boundedness of an advantage. Through literature review, this study identifies three antecedents (i.e., environmental embeddedness, organizational embeddedness, and the nature of an advantage) and hypothesizes their effects on the location-boundedness of an advantage. To facilitate empirical testing of the hypotheses, this study follows a rigorous procedure for developing the measures of the three antecedents. We first derive initial items which may affect the location-boundness of an advantage through deduction from the literature and induction from case studies. After accessing face validity, exploratory and confirmatory factor analysis are conducted with the data collected from executives. Validity and reliability tests support that the measurements of the three constructs are appropriate. Based on the data collected from 133 executives of Taiwanese multinational enterprises, the regression results support the assertion that environmental embeddedness, organizational embeddedness, and the nature of an advantage are the antecedents of an advantage’s location-boundedness, which are positively associated with the level of an advantage’s location-boundedness.The main contribution of this paper stems from the measurements of the three antecedents and verified the influence on the location-boundedness of an advantage. The current work not only extends the Resource- Based View’s concept of advantage into international settings but also attempts to better understand the barriers of international advantage transfer which may enhance managers’ understanding of the applicability of a firm’s advantage in other countries when the firm undertakes overseas investment.


Full Text:

PDF

Refbacks

  • There are currently no refbacks.