Abstract
In this study, we contribute to the literature on multinational enterprise (MNE) location decisions with a more comprehensive two- pillar location framework. We propose adding a socio-economic dimension (i.e., a location’s amenities such as public education and healthcare provisions) to the dominant current integrated location decision model, which mainly focuses on a traditional economic dimension (i.e., location factors such as market size and skilled labor cost). We exemplify this theoretical framework by examining U.S.- based high-tech MNEs’ location decisions regarding their R&D activities at the regional level within China. The results largely support our proposed theoretical framework that socio-economic factors are equally significant in influencing MNE location decisions as traditional economic factors. Detailed discussion and contributions of this study are provided.
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