Chapter 6: Discussion
6.2 Conclusion and contributions
51
52
Bibliography
Akoglu, H. (2018). User’s guide to correlation coefficients. Turkish Journal of Emergency Medicine, 18(3), 91-93. https://dx.doi.org/10.1016%2Fj.tjem.2018.08.001.
Anand, J., Delios, A. (1997). Location specificity and the transferability of downstream assets to foreign subsidiaries. Journal of International Business Studies, 28(3), 579-602.
Asmussen, C. G., Goerzen, A. Unpacking Dimensions of Foreignness: Firm-specific Capabilities and International Dsipersion in Regional, Cultural and Institutional Space. Global Strategy Journal, 3(2), 127-149. https://doi.org/10.1111/j.2042-5805.2013.01055.x.
Asmussen, C. G., Nielsen, B. B., Weatherall, C. D., & Lyngemark, D. H. (2020). Foreign ownership and global city characteristics: Unpacking the connectivity of micro-locations. Regional Studies, 54(3), 352–365. https://doi.org/10.1080/00343404.2019.1623391.
Azar, G. (2014). Food Culture Distance as a Predictor of Foreign Market Selection: The Case of Swedish Food Exporters. Journal of Food Products Marketing, 20(1), 75-97.
https://doi.org/10.1080/10454446.2013.739121.
Bajgar M., Berlingeieri, G., Calligaris, S., Criscuolo, C., Timmis, J., (2020). Coverage and representativeness of Orbis Data. OECD Science, Technology and Industry Working Papers, 6, https://doi.org/10.1787/c7bdaa03-en.
Barney J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120. doi:10.1177/014920639101700108.
Basile, R., Castellani D., Zanfei, A. (2009). National boundaries and the location of multinational firms in Europe. The Regional Science, (88)4, 733-748. https://doi.org/10.1111/j.1435-5957.2009.00238.x.
Beaverstock, J. V., Doel, M. A., Hubbard, P. J., & Taylor, P. J. (2002). Attending to the world:
Competition, cooperation and connectivity in the World City network. Global Networks, 2(2), 111–132. https://doi.org/10.1111/1471-0374.00031.
Belderbos, R., Du, H. S., & Goerzen, A. (2017). Global Cities, Connectivity, and the Location Choice of MNC Regional Headquarters. Journal of Management Studies, 54(8), 1271–1302.
https://doi.org/10.1111/joms.12290.
Belderbos, R., Du, H. S. & Slangen, A. (2020). When do firms choose global cities as foreign investment locations within countries? The roles of contextual distance, knowledge intensity and target country experience. Journal of World Business, 55(1).
https://doi.org/10.1016/j.jwb.2019.101022.
53 Belkaoui, A. R. (1996). Internationalization, diversification strategy and ownership structure:
Implications for French MNE Performance. International Business Review, 5(4), 367-376.
Bell, G. (2005). Clusters, networks and firm innovativeness. Strategic Management Journal, 26, 287-293.
Birkinshaw, J., & Hood, N. (1998). Multinational Subsidiary Evolution: Capability and Charter Change in Foreign-Owned Subsidiary Companies. The Academy of Management Review, 23(4), 773 – 795. https://doi.org/10.2307/259062.
Buckley, P. J., Casson, M. (1976). A long run theory of the multinational enterprise. The future of the multinational enterprise, 32-65. https://doi.org/10.1007/978-1-349-02899-3_2.
Buckley, P. J., Casson, M. (2009). The internalisation theory of the multinational enterprise: A review of the progress of a research agenda after 30 years. Journal of International Business Studies, 40(9), 1563 – 1580. 10.1057/jibs.2009.49.
Cambridge Dictionary. (2021). Retrieved at 16th June 2021 at https://dictionary.cambridge.org/dictionary/english/retail.
Cannon, Hugh M., Yaprak, A. (2002). Will the Real-World Citizen Please Stand up! The Many Faces of Cosmopolitan consumer Behavior. Journal of International Marketing, 10(4), 30 – 52.
Cantwell, J., Dunning, J. & Lundan S. M. (2010). An Evolutionary Approach to Understanding International Business Activity: The Co-Evolution of MNEs and the Institutional Environment.
Journal of International Business Studies, 41(4), 567-586.
Carpenter, J. M., Moore, M. Alexander, N. & Doherty A. (2013). Consumer demographics, ethnocetirm, cultural values, and acculturation to the global consumer culture: A retail perspective. Journal of Marketing Management, 29(3-4), 271-291.
https://doi.org/10.1080/0267257X.2013.766629.
Castellani, D., Lavoratori, K., Perri, A., & Scalera V. (2021). International connectivity and the location of multinational enterprises' knowledge-intensive activities: Evidence from US metropolitan areas. Global Strategy Journal, 1-26. https://doi.org/10.1002/gsj.1404
Ciccone, A., & Hall, R. (1996). Productivity and the density of economic activity. American Economic Review, 86, 54-70.
Chakravarty, D. (2018). Foreign Direct Investment in Global Cities and Co-Ethnic Clusters:
Characteristics, Performance, and Survival. Electronic Thesis and Dissertation Repository.
Retrieved at 17th September 2021 at: https://ir.lib.uwo.ca/etd/5505.
Chakravarty, D. (2019). Foreign Direct Investment in Global Cities and Co-Ethnic Clusters:
Characteristics, Profitability, and Survival. AIB Insights, 19(3), 7–11.
https://doi.org/10.46697/001c.16810.
54 Chakravarty, D., Goerzen, A., Musteen, M., Ahsan, M. (2021). Global cities: A multi-disciplinary review and research agenda. Journal of World Business, 56(3).
https://doi.org/10.1016/j.jwb.2020.101182.
Chang, S-J., Rhee, J.R. (2011). Rapid FDI expansion and firm performance. Journal of International Business Studies, 42, 979-994. doi:10.1057/jibs.2011.30.
Chiu, C. & Hong, Y. (2007). Cultural processes: Basic Principles. Social psychology: Handbook of basic principles, 785 – 804. New York: Guilford.
Chubarov, I., Brooker, D. (2013). Multiple pathways to global city formation: A functional approach and review of recent evidence in China. Cities, 35, 181-189.
https://doi.org/10.1016/j.cities.2013.05.008.
Contractor, F. J., Kundu, S., Hsu, C. (2003). A Three-Stage Theory of International Expansion: The link between Multinationality and Performance in the Service Sector. Journal of International Business Studies, 34(1), 5-18. https://doi.org/10.1057/palgrave.jibs.8400003.
Contractor F. J., Yang, Y., Gaur A. S. (2016). Firm-specific intangible assets and subsidiary profitability : The moderating role of distance, ownership strategy and subsidiary experience.
Journal of World Business, 51(6), 950-964. https://doi.org/10.1016/j.jwb.2016.09.002.
Devadason, R. (2010) Cosmopolitanism, Geographical Imaginaries and Belonging in North London.
Urban Studies 47(14), 2945 – 2963.
Dimitrova, B. V., Rosenbloom, B., Larsen Andras, T., Saejoon, K. (2018). Retail internationalization: A review and directions for future research. Journal of Marketing Channels, 25(1-2), 1-21. https://doi.org/10.1080/1046669X.2019.1646183.
Drogendijk, R., & Slangen, A. (2006). Hofstede, Schwartz, or managerial perceptions? The effects of different cultural distance measures on establishment mode choices by multinational enterprises. International Business Review, 15(4), 361–380. doi:
10.1016/j.ibusrev.2006.05.003.
Dunning, J. H. (1998). Location and the Multinational Enterprise: A neglected factor? Journal of International Business Studies, 29, 45-66. https://doi.org/10.1057/palgrave.jibs.8490024.
Dunning, J. H. (1980). Toward an eclectic theory of international production: Some empirical tests.
Journal of International Business Studies, 11, 9-31.
https://doi.org/10.1057/palgrave.jibs.8490593.
Eurostat (2019). Glossary: Multination enterprise (MNE). Eurostat. Retrieved July 13, 2021, from https://ec.europa.eu/eurostat/statisticsexplained/index.php?title=Glossary:Multinational_enter prise_(MNE).
55 Forbes. (2020). Understanding Return on Assets (ROA). Forbes Advisor. Retrieved at 10th of
December 2021 from https://www.forbes.com/advisor/investing/roa-return-on-assets/#:~:text=An%20ROA%20of%205%25%20or,company%20is%20at%20generating%20 profits.
Friedmann, J. & Wolff, G. (1982). World city formation: An agenda for research and action.
International Journal of Urban and Regional Research, 6, 309-344.
GaWC (2020). The World According to GaWC 2020. GaWC. Retrieved June 16, 2021, from https://www.lboro.ac.uk/gawc/world2020t.html.
Geleilate, J. M. G., Andrews, D. S., & Fainshmidt, S. (2019). Subsidiary autonomy and subsidiary performance: A meta-analysis. Journal of World Business, 55(4).
Ghemewat, P. (2001). Distance still matters: The hard reality of global expansion. Harvard Business Review. Retrieved at 20th of December 2021 from https://hbr.org/2001/09/distance-still-matters-the-hard-reality-of-global-expansion.
Gholipour, H. F., Tajaddini, R., Andargoli, A. E. (2020). The long run and short run impact of international tourists’ retail shopping on domestic retail sale. Current Issue in Tourism, 24(3), 297 – 303. https://doi.org/10.1080/13683500.2020.1732882.
Goerzen, A., Asmussen, C. G., & Nielsen, B. B. (2013). Global cities and multinational enterprise location strategy. Journal of International Business Studies, 44, 427–450.
https://doi.org/10.1057/jibs.2013.11.
Gomez-Mejia, L., & Palich, L. (1997). Cultural diversity and the performance of multinational firms.
Journal of International Business Studies, 28(2), 309–335. doi:
10.1057/palgrave.jibs.8490103Grant, R.M. (1987). Multinationality and performance among British manufacturing companies. Journal of International Business Studies 18(1), 79–89.
Han, K., Lee, S. and Suk, D. (1998). Multinationality and firm performance. Multinational Business Review 6(2): 63–70.
Hanson, N. W. (1964). Economies of scale as a cost factor in financing public schools. National Tax Journal, 17(1). https://doi.org/10.1086/NTJ41790977.
Hart, C. A. (2019). Evolving perceptions of assortments, image and customer experiences in retail environments. Loungborough University.
Heikal M., Khaddafi, M., Ummah, A. (2014). Influence analysis of return on assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), Debt To Equity Ratio (DER), and current ratio (CR), Against Corporate Profit Growth In Automotive In Indonesia Stock. International Journal of Academic Research in Business and Social Sciences, 4(12).
http://dx.doi.org/10.6007/IJARBSS/v4-i12/1331.
56 Huang, A., Levenson, D. (2010). Why retailers cluster: an agent model of location choice on supply chains. Environment and Planning B: Planning and Design, 38(1), 82-94.
https://doi.org/10.1068%2Fb36018.
Hutzschenreuter, T., Kleindienst, I., & Lange, S. (2015). The Concept of Distance in International Business Research: A Review and Research Agenda. International Journal of Management Reviews, 00, 1–20. https://doi.org/10.1111/ijmr.12065.
Hutzschenreuter, T., Matt, T., & Kleindienst, I. (2020). Going subnational: A literature review and research agenda. Journal of World Business, 55(4), 101076–101076.
https://doi.org/10.1016/j.jwb.2020.101076.
Johanson, J., & Vahlne, J.-E. 1977. The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1): 23–32.
Jong de, G., Phan, T. B., Ees van, H. (2010). Does the meta-environment determine firm performance? Theory and evidence from European multinational enterprises. International Business Review, 20, 454-465. https://doi.org/10.1016/j.ibusrev.2010.08.003.
Kearney. (2020). New priorities for a new world – 2020 Global Cities Index. Kearney. Retrieved at 5th of January 2022 from https://www.kearney.com/global-cities/2020.
Kudina, A. (2012) Regional strategies, liability of foreignness, and firm performance. Multinational Business Review, 20(4), 331-351. https://doi.org/10.1108/15253831211286255.
Kukalis, S. (2010). Agglomeration Economies and Firm Performance: The case of industry clusters.
Journal of Management, 36(2), 453-481.
Lizieri, C., & Pain, K. (2013). Regional Studies International Office Investment in Global Cities:
The Production of Financial Space and Systemic Risk. Regional Studies, 48(3), 439 – 455.
https://doi.org/10.1080/00343404.2012.753434.
Lu, J., Beamish, P. (2004). International Diversification and Firm Performance: The S-curve Hypothesis. Academy of Management, 47(4), 598 – 609. https://doi.org/10.2307/20159604.
Maruyama, M., & Wu, L. Overcoming the Liability of Foreignness in International Retailing: A Consumer Perspective. Journal of International Management, 21(3), 200-210.
https://doi.org/10.1016/j.intman.2015.07.001.
Meyer, K. E., Li, C., & Schotter, A. P. J. (2020). Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda. Journal of International Business Studies, 51, 538 – 576.
https://doi.org/10.1057/s41267-020-00318-w.
57 Mohr, A., Batsakis, G. (2017). Internationalization Speed and Firm Performance: A study of the Market-Seeking Expansion of Retail MNEs. Management International review, 57, 153-177.
https://doi.org/10.1007/s11575-016-0284-9.
Mohr, A., Fastoso, F., Wang, C., Shirodkar, V. (2014). Testing the Regional Performance of Multinational Enterprises in the retail sector: The Moderating Effects of Timing, Speed and Experience. British Journal of Management, 25, 100-115. https://doi.org/10.1111/1467-8551.12013.
Nachum, L. (2003). Liability of foreignness in global competition? Financial service affiliates in the city of london. Strategic Management Journal, 24(12), 1187–1208.
https://doi.org/10.1002/smj.347.
Nieman, J. (2000). Review: World Cities and Grand Theories. Economic and Political Weekly, 35(15), 1255 – 1258.
Narula, R., Geisler Asmussen, C., Chi, T., & Kumar Kundu, S. (2019). Applying and advancing internalisation theory: The multinational enterprise in the twenty-first century. Journal of International Business Studies, 50, 1231–1252. https://doi.org/10.1057/s41267-019-00260-6.
North, D. C., Institutions. The Journal of Economic Perspectives, 5(1), 97 – 112.
Oerlemans, L. A. G., Meeus, M. T. H. (2002). Spatial embeddednesss and firm performance: an empirical exploration of the effects of proximity on innovative and economic performance..
2nd Congress of the European Regional Science Association: "From Industry to Advanced Services - Perspectives of European Metropolitan Regions", August 27th- 31st, 2002, Dortmund, Germany, European Regional Science Association (ERSA), Louvain-la-Neuve.
Oh, C. H., Sohl, T., Rugman, A. M. (2015). Regional and product diversification and the performance of retail multinationals. Journal of International Management, 21(3), 220-234.
https://doi.org/10.1016/j.intman.2015.04.002.
Otiso, K. M., Derudder, B., Bassens, D., Devriendt, L., & Witlox, F. (2011). Airline connectivity as a measure of the globalization of African cities. Applied Geography, 31(2), 609–620.
https://doi.org/10.1016/j.apgeog.2010.12.002.
Owen-Smith, J., & Powell, W. W. (2004). Knowledge Networks as Channels and Conduits: The Effects of Spill-overs in the Boston Biotechnology Community. Organisation Science, 15(1), 5–21. https://doi.org/10.1287/orsc.1030.0054.
Pavelkova, D., Zizka, M., Homolka, L., Knapkova, A., Pelloneova, N. (2021). Do clustered firms outperofmr the non-clustered? Evidence of financial performance in traditional industries.
Economic Research. https://doi.org/10.1080/1331677X.2021.1874460.
58 Pedersen, T. ;, & Tallman, S. (2016). How We Facilitate Conversations in Global Strategy-and the Location of MNE HQS. Global Strategy Journal, (6), 124 – 126.
https://doi.org/10.1002/gsj.1114.
Peng, M.W. Towards an Institution-Based View of Business Strategy. Asia Pacific Journal of Management 19, 251–267 (2002). https://doi.org/10.1023/A:1016291702714.
Picone, G. A., Ridley, D. B., Zandbergen, P. A. (2015) Distance decreases with differentiation:
Strategic agglomeration by retailers. International Journal of Industrial Organisation, 27(3), 463-473. https://doi.org/10.1016/j.ijindorg.2008.11.007.
PROCESS macro for SPSS and SAS. (2022). The PROCESS Macro for SPSS, SAS, and R. Retrieved on 7 januari 2022 at https://www.processmacro.org/index.html.
Quix, F. (2019). Retail Marketing. (7th ed). Noordhoff.
Rasel, S. & Kalfadellis, P. (2021). Global and non-global city locations: the effect of clusters on the performance of foreign firms. Regional Studies, Regional Science, 8(1), 88-108.
https://doi.org/10.1080/21681376.2021.1898461.
Raudys, S. J. & Jain, A. K. (1991). Small Sample Size Effects in Statistical Pattern Recognition:
Recommendations for Practioners. Transactions on pattern analysis and machine intelligence, 13(3).
Riefler, P. Diamantopoulos, A. & Siguaw, J. A. (2012). Cosmopolitan consumers as a target group for segmentation. Journal of International Business Studies, 43, 385-305.
https://doi.org/10.1057/jibs.2011.51.
Robino, D. M. (2019). Global Destination Cities Index Senior Vice President of Global Tourism
Partnerships. Mastercard. Retrieved June 10, 2021, from
https://newsroom.mastercard.com/wp-content/uploads/2019/09/GDCI-Global-Report-FINAL-1.pdf.
Rugman, A. (1981). A test of internalisation theory. Managerial and Decision Economics, 2(4), 211-219. https://doi.org/10.1002/mde.4090020402.
Rugman, A. M. , Li, J., Oh, C. H. (2009) Are supply chains global or regional? International Marketing Review, 26(4/5), 384-395. https://doi.org/10.1108/02651330910971940.
Rugman, A. M. & Verbeke, A. (1992). A Note on the Transnational Solution and the Transaction Cost Theory of Multinational Strategic Management. Journal of International Business Studies, 23, 761-771. https://doi.org/10.1057/palgrave.jibs.8490287.
Rugman, A. M., Verbeke, A., Nguyen, Q. T. K. (2011). Fifty years of international business theory and beyond. MIR: Management International Revie, 51(6), 755 – 786.
59 Sassen, S. (2006). Towards an Alternative Narrative about Globalization: Global cities and survival
circuits. Cahiers du Genre, 40(1), 67-89.
Saxenian, A. 1994. Regional advantage: Culture and competition in Silicon Valley and Route 128.
Cambridge, MA: Harvard University Press.
Selvan, M., Gayatrhi, J., Vinayagamoorthi, V., Lingaraja, K & Marxiaoli, S. (2016). Determinants of Firm Performance: A Subjective Model. International Journal of Social Science, 4(7).
https://doi.org/10.11114/ijsss.v4i7.1662.
Sevincer, A. T., Kitayama, S., Varnum, M. E. W. (2015). Cosmopolitan cities: the frontier in the
twenty-frist century? Frontiers in Psychology, 6, 1459.
https://doi.org/10.3389/fpsyg.2015.01459.
Sevincer, A. T., Varnum, M. E. W., Kitayama, S. (2017). The culture of Cities: Measuring perceived Cosmopolitanism. Journal of Cross-Cultural Psychology, 48(7). 1052-1072.
https://doi.org/10.1177%2F0022022117717030.
Shaver J. M. & Flyer, F. (2000). Agglomeration economies, firm heterogeneity, and foreign direct investment in the United States. Strategic Management Journal, 21(12), 1175 – 1193.
10.1002/1097-0266(200012)21:12<1175::aid-smj139>3.0.co;2-q.
Shi, Y., Lim, J. M., Weitz, B. A., France, S. L. (2018). The impact of retail format diversification on retailers’ financial performance. Journal of Academic Marketing Science, 46, 147-167.
https://doi.org/10.1007/s11747-017-0559-0.
Smith, D. A., & Timberlake, M. F. (2001). World city networks and hierarchies, 1977-1997: An empirical analysis of global air travel links. American Behavioral Scientist, 44(10), 1656–1678.
https://doi.org/10.1177/00027640121958104.
Storper, M., & Venables, A. J. (2004). Buzz: Face-to-face contact and the urban economy. Journal of Economic Geography, 4(4), 351–370. https://doi.org/10.1093/jnlecg/lbh027.
Toly, N. (2017). Brexit, Global Cities, and the Future of World Order. Brexit, Global Cities, and the Future of World Order, Globalizations, 14(1), 142–149.
https://doi.org/10.1080/14747731.2016.1233679.
University of Southampton (2022). Chi square. University of Southampton. Retrieved at 2nd of
January 2022 from
https://www.southampton.ac.uk/passs/full_time_education/bivariate_analysis/chi_square.page .
University of Sussex (2022). Eight things you need to know about interpreting correlations.
University of Sussex. Retrieved at 2nd of January 2022 from
60 http://users.sussex.ac.uk/~grahamh/RM1web/Eight%20things%20you%20need%20to%20kno w%20about%20interpreting%20correlations.pdf.
University of Virginia Library. (2016). Hierarchical Linear Regression. University of Virginia.
Retrieved at 2nd of January 2022 from https://data.library.virginia.edu/hierarchical-linear-regression/.
Vermeulen, F., Barkema, H. (2002). Pace, rhythm and scope: Process dependence in building a profitable multinational corporation. Strategic Management Journal, 23, 637-653. DOI:
10.1002/smj.243.
Warf, B. (2015). Global cities, cosmopolitanism, and geographies of tolerance. Urban Geography, 36(6), 927-946. https://doi.org/10.1080/02723638.2015.1067408.
Weenink, D. (2008). Cosmopolitanism as a form of capital: Parents preparing their children for a globalizing world. Sociology, 42(6), 1089–1106. https://doi.org/10.1177/0038038508096935.
Williamson, O. E. (1981). The Economics of Organisation: The Transaction Cost Approach.
American Journal of Sociology, 87(3), 548–577. https://doi.org/10.1086/227496.
Yang, Y., Driffield, N. (2012). Multinationality-performance relationship: A Meta-Analysis.
Management International Review, 52(1), 23-47. http://www.jstor.org/stable/41411018.
Zaheer, S. (1995). Overcoming the Liability of Foreignness. The Academy of Management Journal (38)2, 341-363.
Zhang, X., Ly, Y. & Yuan, Y. (2018). Behind the scenes: the evolving urban networks of film
production in China. Urban Geography, 39(10), 1510-1527.
https://doi.org/10.1080/02723638.2018.1477297.
61
Appendices
Appendix 1 Histograms
Figure 4 Histogram AV_ROA
Figure 5 Histogram AV_ROS
Figure 6 Histogram control variables
62
Appendix 2 Descriptive statistics
Descriptive statistic
N Minimum Maximum Mean Std.
deviation
Skewness statistic
Skewness std. error
AV_ROA 345 -,04 ,05 ,0003 ,01233 -,540 ,131
AV_ROS 332 -2,56 2,41 ,0377 ,41764 -,729 ,134
AV_Employees 123 ,00 981,50 212,6802 274,05056 1,389 ,218
Years_active 418 2 133 22,56 20,040 2,210 ,119
AV_liq 298 ,00 41,21 3,3045 6,04342 3,976 ,141
Valid N
(listwise)
91
Table 20 Descriptive statistics before computing
Descriptive Statistic
N Minimum Maximum Mean Std.
deviation
Skewness statistic
Skewness std. error
New_employees 115 ,00 2,99 1,8075 ,88032 ,775 -,518
New_yearsactive 418 ,30 2,12 1,2109 ,35818 ,128 -,072
New_liq 297 -2,00 1,62 ,1207 ,59850 ,358 -,107
Valid N
(listwise)
86
Table 21 Descriptive statistics after computing
63 Frequency table – Global cities
Frequency Percentage Cumulative percent
GC 169 40,1 40,1
NGC 252 59,9 100,0
Total 421 100,0
Table 22 Global cities
Frequency tabel – Continent difference
Frequency Percentage Cumulative percent
Different 89 21,1 21,1
Same 332 78,9 100,0
Total 421 100,0
Table 23 Continent difference
Frequency tabel – Food vs non-food
Frequency Percentage Cumulative percent
Food 334 79,3 79,3
Non-food 87 20,7 100,0
Total 421 100,0
Table 24 Food vs non-food
Frequency table - Digital
Frequency Percentage Cumulative percent
Digital 394 93,6 93,6
Non-digital 27 6,4 100,0
Total 421 100,0
Table 25 Digital nature