Subnational Location Capital: The Role of Subnational Institutional Actors and Socio-spatial Factors on Firm Location

Sinéad M. Monaghan, Patrick Gunnigle, Jonathan Lavelle

Research output: Contribution to journalArticlepeer-review

Abstract

Firms do not simply locate, but rather seek to accrue location-based advantages such as knowledge, market insidership and resource utilization. Adopting the lens of social capital, this paper explores how subnational institutional actors facilitate location capital for firms. Using qualitative case study analysis of six multinational companies (MNCs), we highlight the important role of subnational institutional actors in fostering three dimensions of subnational location capital – structural, relational and cognitive. We show that subnational location capital, defined as the economic and social assets accessible through relationships within a subnational location, enable firms to derive advantages via subnational engagement. These findings contribute to the growing literature on the dynamic interaction of firms with subnational location, particularly the nuanced role of subnational institutional actors with MNCs.

Original languageEnglish
Pages (from-to)618-635
Number of pages18
JournalBritish Journal of Management
Volume31
Issue number3
DOIs
Publication statusPublished - 1 Jul 2020
Externally publishedYes

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