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Falaster, Christian
Ferreira, Manuel Portugal
Year of Publication: 
[Journal:] Innovation & Management Review [ISSN:] 2515-8961 [Volume:] 17 [Year:] 2020 [Issue:] 4 [Pages:] 351-367
Purpose - Using an institution-based view, this study aims to conceptualize how sub-national institutional characteristics are likely to explain location choice of multinationals' research and development (R&D) subsidiaries. Design/methodology/approach In a conceptual paper, this study explores specific institutional facets of the regional environments within a country that are capable of explaining, at least in part, the location choices of multinational corporations' R&D subsidiaries. Findings This study thus explores the more nuanced influences of the institutional environments at a subnational level and develops propositions to explain location choices based on the differences of the institutional environments. Originality/value This study contributes to international business theory by incorporating a location-specific analysis that contrasts to the usual country-level observation on the determinants of firms' location decisions.
Institutional environment
Location choice
Regional differences
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