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Sense of place: From location resources to MNE locational capital

✍ Scribed by Srilata Zaheer; Lilach Nachum

Publisher
Wiley (John Wiley & Sons)
Year
2011
Tongue
English
Weight
204 KB
Volume
1
Category
Article
ISSN
2042-5791

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

Location is commonly perceived as a source of generic resources to all firms in a given place and, therefore, not something that leads to firm‐specific advantage. We challenge this view and suggest that multinational enterprises (MNEs) differ in their location capability, which enables them to create locational capital from generic location resources. Location capability is expressed in an MNE's ‘sense of place’—its recognition of the potential in a location and the actions it takes to create value from this potential. We outline the engagement, transformation and appropriation processes through which this happens and their implications for MNEs following multidomestic and global strategies. Thus, we advance an action‐based view of firms driven by their sense of place to change the very nature of location resources.

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