NOTES 1 We found that most studies in this literature stream cite Marshall 1920

Notes 1 we found that most studies in this literature

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NOTES 1 We found that most studies in this literature stream cite Marshall (1920), who centers on specialized producer communities that diffuse the “secrets” of industry, but do not mention Jacobs (1969, 1984, 2000), who describes a cosmopolitan and haphazard city life. 2 While we do not apply the demographic tradition in this paper, we distinguish between megacities and global cities in the empirical section. Global cities and multinational enterprise location strategy Anthony Goerzen et al 446 Journal of International Business Studies
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3 This can be considered a special case of the more general notion of co-evolution between MNEs and their environments (e.g., Cantwell, Dunning, & Lundan, 2009). 4 For example, Boeh and Beamish (2012) demon- strate that travel time between headquarters and subsidiary is a more powerful predictor of firm gover- nance and location choices than is geographic distance. 5 For more information, visit Publications/IDMK_definition.asp 6 Note that the investment motives are not mutually exclusive; this enables us to include all dummies without falling into the “dummy variable trap”. 7 These cities, which are included for comparison purposes, are Guangzhou, Lagos, Calcutta, Dhaka, Karachi, Delhi, Mumbai, Cairo, Tehran, and Rio de Janeiro. All of these have more than 10 million inhabitants, yet they are not classified as global cities in the Beaverstock et al. (1999) list. 8 Specifically, we compared the Beaverstock et al. (1999) list with a 2010 version of the same list, a 2008 list from MasterCard, a 2011 list from the Mori foundation, and a 2012 list from AT Kearney. Out of the top 30 cities in the 1999 list, five did not show up in the top 30 of any of the more recent lists (i.e., Caracas, Dusseldorf, Johannesburg, Prague, and Santiago). However, all of these five cities did appear below the top 30 in more recent lists, suggesting that they did not cease to be global cities, but perhaps merely have been relegated by other emerging cities to a lower position in the hierarchy. Similarly, relative to the 1999 top 30, there was only one new “new” city that appeared consistently in the more recent lists – that is, Shanghai – which advanced from the 42nd place to the 7th place in the GaWC hierarchy, following the development of the Chinese economy (Guthrie, 2009). Although not yet in the top tier, change of a similar magnitude could be observed for Vienna, which did not appear at all on the 1999 list but was at 38th place in the 2010 GaWC list, most likely reflecting the Austrian capital’s development over the previous decade to become a regional hub by virtue of a de facto position as bridgehead between eastern and western Europe (Musil, 2009). 9 The term “Matthew effect” was coined by Merton (1968), based on the biblical Gospel of Matthew: “For whoever has will be given more, and they will have an abundance. Whoever does not have, even what they have will be taken from them” (Matthew 25:29, New International Version).
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