Quotation Nachbagauer, Andreas. 2017. Sustainable location policy ¿ a view from inside of the corporation. Wirtschaft und Management 24 (Mai), 63-88.




The “war for new locations” has recently gained wide attention. Mostly overlooked is however the question whether these establishments are sustainable in the sense of lasting for a longer period. Furthermore, most of the literature seems to define the corporation as a black-box. But concentrating on the long-term effects requires a closer look at the internal side of the company. A sustainable location policy depends on a long-term internationalisation strategy of and organisational set-up within the multinational organisation. Internationalisation motifs of companies now entering Europe are connected to strategic assets (or knowledge)-seeking strategies. The regional or local unit’s chances to exist in the long run depends on the distribution of internal control and responsibilities. Both the effects of internationalisation strategy and configuration are ultimately connected to the (power of) respective managers and units. Thus, the contributions of micro-political actions and power games on the location’s stability are discussed. This article argues that hard-fact location incentives will attract the settlement of new (regional) headquarters in the short-term, but will not be sufficient to maintain a branch; rather, fulfilling these requirements is merely the ticket to enter the game. Consequently, soft location factors are becoming increasingly important when choosing a location policy. The final considerations are devoted to the integration of previous deliberations to answer the question from inside of the corporation: What can help a regional policy to boost sustainable locations in addition to well-known advice? My recommendations comprise: choosing carefully whom to attract; staying attractive with always new specials offers; raising sunk cost; and using micro-politics and networks.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Wirtschaft und Management
Language English
Title Sustainable location policy ¿ a view from inside of the corporation
Volume 24
Number Mai
Year 2017
Page from 63
Page to 88
Reviewed? Y
URL http://www.fh-vie.ac.at/Forschung/Publikationen/FH-Schriftenreihe/Schriftenreihe-Wirtschaft-und-Management
DOI na


Nachbagauer, Andreas (Former researcher)
Institute for Sociology and Social Research IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5307 Business and management economics (Details)
5324 Organizational research (Details)
5352 Human resource management, personnel management (Details)
5363 Non-profit-sector research (NPO, NPI) (Details)
5402 General sociology (Details)
5416 Industrial sociology (Details)
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