When do transnational institutions matter for multinational corporations’ location choices?

Prof. Christine, Man Kuen CHAN
The University of Hong Kong

Date: 25 October 2023 (Wednesday)
Time: 11:00 am – 12:30 pm
Venue: E22-G015
Host: Prof. Jennifer LAI, Associate Professor in Management
Online registration: https://umac.au1.qualtrics.com/jfe/form/SV_3P140ydeidsYVQq


This study examines the influence of transnational institutions (i.e., bilateral investment treaties and preferential trade agreements) on multinational corporations’ (MNCs) location choices. It draws on institutional perspectives and insights from political economy to argue that the influence of transnational institutions on MNCs’ location choices varies depending on host country institutional uncertainty, home country formal institutional voids, and MNC multiple embeddedness. Using a sample of 13,011 foreign market entries from 1,129 parent MNCs in 73 host countries between 2005 and 2017, we find that the influence of transnational institutions is stronger when the levels of host country institutional uncertainty and home country formal institutional voids are higher, and that such an influence is weaker for MNCs with a high degree of multiple embeddedness.


Prof. Christine Chan is Professor of Management and Strategy at the HKU Business School, The University of Hong Kong. Her research interests include foreign market entry decision, entry mode choice, international joint venture, and performance of foreign affiliates of multinational corporations. She has published articles in the Strategic Management Journal and Journal of International Business Studies. She has presented her papers at the Academy of Management Conference, Academy of International Business Conference, and Asia Academy of Management Conference. Two of her conference papers have appeared in the Academy of Management Best Paper Proceedings.