Review Jurnal Penelitian

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Viranda Tri Susbiyantoro

21 Desember 2016
Trend Psikologi Masa Depan (abad 21)

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LUIZ F. MESQUITA
2016
LOCATION AND THE GLOBAL ADVANTAGE OF FIRMS
Global Strategy Journal
6: 3 12 (2016)

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The goal of this article is to point to a research agenda

framing the internationalization of rms on theories of
locationwhich is dened as positions of place, time, and
space that engender tacit sources of competitive advantage.
Despite recent research merging location and internationalization theoretical models, much remains unknown,
and future work is warranted to respond to four fundamental
questions: (1) why rms venture abroad; (2) how such
motivations shape FDI patterns; (3) how multinational rms
shape the foreign environments they enter; and (4) what
resources and (dynamic) capabilities are involved in such a
process. The specic contributions of the articles to the
research agenda are also highlighted here.
Whether it location and the global advantage of firms
Knowing location and the global advantage of firms
EARLY AND CONTEMPORARY VIEWS ON LOCATION
The conceptual antecedents of location can be traced back
at least to Alfred Marshall and his compelling manuscript on
the externalities of specialized indus-trial places, offered as
a chapter in Principles of Economics (originally published in
1890). This original model spawned a signicant literature
on economic geography that describes how the agglomeration of buyers and sellers in a given spot justies public
investments in larger-scale infrastructure, lowers exchange
costs, and increases the uidity of idea interactions, thereby
creating opportunities for the multiple agents to partake in
richer pools of resources that cannot be transferred to and
from other locations (e.g., McCann, 1995a, 1995b, 1996;
see also Gandolfo, 2013; Scott and Storper, 2015, for recent
reviews).
PAST
AND
NEW
THINKING
ON
INTERNATIONALIZATION
Our understanding of the internationalization of the
moderncorporationdrawsfromwell-knowntheoreti-cal
underpinnings, one of which sees the foreign expansion
process as a function of the rms product life cycle. For
instance, Vernon (1966) argued that international trade
patterns emerged from the evolu-tion in a products lifetime,

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in that parts and labor initially came from the location of its
invention, but due to market diffusion, production gradually
moved away from this point of origin, in many cases becoming located entirely in foreign markets. Thus, by moving
abroad,the rm distinguished between labor-and capitalintensive products so as to tap into distinct input and
consumer markets (Vernon,1966). Another
view on
corporate
internationalization
relates
to
the
sequential mode (als know a th Uppsala model).
THE LOCATION OF FOREIGN ACTIVITYNEW
AVENUES OF INQUIRY
Four fundamental questions guide our effort to frame the
internationalization of the rm on theories of location. First,
why do rms go abroad? Beyond traditional thinking
regarding the search for new markets and new skills, what
other drivers motivate foreign venturing? New studies
suggest that rms strategic motivations are a direct function of their ownership structures.
THE LOCATION OF FOREIGN ACTIVITYNEW
ANSWERS TO PENDING QUESTIONS
The articles in this special issue cut across many of the
multiple lines of inquiry outlined above, address-ing multiple
topics and bringing fresh perspectives to the discussion.
Shi, Hoskisson, and Zhang (2016, this issue), for example,
take us beyond the usual reasoning that rms venture
abroad to focus on prot maximizing. Past the well-known
comparative advantage argument (e.g., Dunning and
Lundan, 2008), the
resource-seeking reasoning (e.g.,
Chung and Alcacer, 2002), or even the argument that rms
follow strategies that diminish business and political risks
(e.g., Henisz, Manseld, and Von Glinow, 2010), the authors
explore how political motivations shape the rms strategic
plans.
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