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1、Thecurrentissueandfulltextarchiveofthisjournalisavailableatwww.emeraldinsight.com/1746-8809.htmIJOEMLocalsourcingofmultinational7,4enterprisesinChinaYingqiWei364TheYorkManagementSchool,UniversityofYork,York,UKXiamingLiuSchoolofManagement,BirkbeckCollege,Universityo
2、fLondon,London,UKChengangWangSchoolofManagement,BradfordUniversity,Bradford,UK,andJueWangSouthwesternUniversityofFinanceandEconomics,Chengdu,ChinaAbstractPurposeLocalsourcingfromindigenousfirmsbymultinationalenterprises(MNEs)isanimportantchannelthroughwhichtheformer
3、maybenefitfromthepositiveexternalitiesgeneratedbythelatter.ThepurposeofthisstudyistoanalyzetheextentanddeterminantsoflocalsourcingofMNEs.Design/methodology/approachEmployingasurveydatasetcovering493multinationalsubsidiariesinChinaduring1999-2005,thispaperappliesthet
4、wo-limitTobitmodel.FindingsItisfoundthatanMNEslocalsourcingdecisionisinfluencedbyitsstrategies,characteristicssuchassizeandlearningabilityandcountry-of-origin.Morespecifically,export-orientationstrategy,jointventurestrategyandnetworkingwithlocalsupplierspositivelyaff
5、ectlocalsourcing.Smallandautonomoussubsidiariestendtosourcemorelocally.Agehasanon-lineareffect.Theimportanceofthesedeterminantsvarieswithregions.Researchlimitations/implicationsAimingatcapacitybuildingandcompetitivenessofindigenousfirms,theChinesegovernmenthasinitia
6、tedlocalcontentrequirement.Thisstudyshowsthatsuchpolicyinterventioncouldbecounterproductive.Thecreationofamorecompetitivebusinessenvironmentbythegovernmentcouldpromotemorelinkages.Originality/valueGivenitscriticalroleineconomicdevelopment,localsourcingbyMNEshasattr
7、actedmuchattention.OnlylimitedresearchhasbeencarriedoutonFDIlinkageeffectsinChina,andthelocationeffectonFDIlinkageshasnotbeenexamined.ThisstudyaimstofillthegapbyusingChinesesurveydata.KeywordsFDI,China,Localsourcing,Multinationalcompanies,SourcingPapertypeResearchpa
8、perI.IntroductionMultinationalenterprises(MNEs)maychoosetouselocallyproducedcomponentsandintermediateproductsforreasonssuchascosts,convenience,pr
