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Knowledge Transfer through Appropriate Location Selection: An Empirical Investigation in China

Fan Liang (University of Tasmania, Australia)
Stephen Nicholas (University of Newcastle, Australia)

Journal of Asia Business Studies

ISSN: 1558-7894

Article publication date: 1 May 2007

282

Abstract

This paper investigates the location determinants of foreign investors and how the location decision‐making impacts on their knowledge transfer strategies. Survey data were collected in Yunnan, a southwest province of China. By examining two different sets of location factors at both the national and provincial levels, the research found that location factors at the provincial level, rather than at the national level, directly influenced foreign investors’ knowledge transfer strategies. The research also found that the support of Yunnan’s local government compensated for the underdeveloped endowment conditions of the province, significantly increasing knowledge transfer of foreign investors. The research suggests that foreign investors need to make appropriate location selection to efficiently exploit their ownership advantages. A well‐structured policy regime is required of host countries in order to encourage knowledge transfer by foreign investors.

Keywords

Citation

Liang, F. and Nicholas, S. (2007), "Knowledge Transfer through Appropriate Location Selection: An Empirical Investigation in China", Journal of Asia Business Studies, Vol. 1 No. 2, pp. 45-54. https://doi.org/10.1108/15587890780001295

Publisher

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Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited

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