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This article examines the satisfaction level of production relocation of export oriented firms. We introduce a conceptual model, by incorporating the Expectancy Disconfirmation Paradigm (EDP) model and the Perception model, and use Hotelling T2 statistics and paired t-test to measure management's satisfaction levels toward production at the relocated location. Most of the extant literatures focus on the choice decision of production relocation; this report, however, focuses on the manufacturer's satisfaction level toward the selected location. While location choice is an ex ante analysis, satisfaction analysis is an ex post analysis on production relocation. Findings of the study show that among the 20 location factors, political stability and sufficient industrial engineers are the best predictors of electronics manufacturers' satisfaction on production relocation. A firm may consider relocating the production again if dissatisfaction grows. This may explain, at least partly, the international m...

Using data from the Hong Kong electronics industry, this paper studies the “make” or “buy” decisions associated with export channel strategies (Peng, Zhou, & York, 2006). Findings show that the integrated channels (the “make” decision in transaction cost theory) play a more important role on exporting than the market governance channels (the “buy” decision, i.e., buying channel services from local export intermediaries). In addition to manufacturers’ integrated channels, from the buyers’ standpoint, we find two active integrated channels, namely, (1) the buying offices of firms from developed economies which are located in Hong Kong and (2) the regular visiting buyers of firms from developed economies. These two export channels are integrated channels from the buyers’ standpoint. They are not found in the export distribution structure of developed economies. This paper explains the development and the importance of these buyers’ channels in newly industrialized economies. It also examines the similarities and dissimilarities of export behavior between manufacturing firms in developed and newly industrialized economies, using Hong Kong as an example.

The U.S. government intends to re-impose quota restrictions on textile and garment exports from China after the termination of the Agreement on Textiles and Clothing in 2005. This paper argues that quota restrictions on offshore production will create, not eliminate, more powerful competitors in the market. Manufacturers from developing economies will be forced to relocate production to countries that do not fall within the umbrella of quota restrictions. This accelerates the pace of internationalisation of these firms. This study investigates the internationalisation process of the two largest manufacturing industries in Hong Kong; one is affected by import quota and the other is not. Our findings show that the Multi-Fibre Arrangement had a significant impact on the internationalisation of Hong Kong garment firms during their early stages of industrial development. This study confirms the explanatory power of Dunning's eclectic paradigm in relation to the FDI by manufacturing firms in both the g...

Shopping is one of the most enjoyable leisure-time activities for many tourists. It is, for some destinations, the primary reason for tourism. This article introduces a conceptual model on cross-border shopping built on the extant literature of outshopping, cross-border shopping, and border travel. The authors incorporate macro- and microanalytical factors that influence cross-border shopping behavior. It is hypothesized that market and consumer characteristics (i.e., macro and micro factors) affect cross-border shopping. The model has been tested with data collected from1,000 Hong Kong residents. Findings of this study confirmed that cross-border shopping behavior was affected by the macroenvironmental factors (market characteristics) of the shopping area and socioeconomic as well as motivational characteristics of the consumer (microanalytical factors). On the other hand, the impact of traveling distance between the tourist's place of residence and the shopping area on cross-border shopping was found to be nonsignificant. Implications for retailers and tourism-related institutions are discussed.

Patterns of internationalization processes in industrializing countries seem to differ from the pattern in developed countries as they are reflected in the Uppsala and Innovation models. This study investigates the internationalization process of firms from a newly industrialized economy (NIE) in a mature product sector. The study employs two theoretical perspectives derived from (1) location-centered economic development theories and (2) the firm-centered theories of foreign direct investment (FDI). It explains why firms with few product-oriented specific ownership advantages in an industrializing economy successfully engage in production-related FDI (even from their start-up), and why the elapsed time from start-up to FDI is becoming shorter as the local sector develops. The paper also examines production location choices, showing that tolerance to psychic (cultural) distance increases with successive investments. The hypotheses derived are tested using FDI data from the garment industry of Hong Kong.

This study introduces a theoretical model: Production Cycle of Manufacturing Industry (PCMI), which extends the International Product Life Cycle (IPLC) to emerging economies. The IPLC provides a framework for explaining the globalization of export-oriented production by MNCs' affiliates in emerging economies. This PCMI model looks into detail the evolution process of the industry after it has been relocated from advanced to emerging economies. It asserts that a manufacturing industry after relocating from advanced to emerging economies will go through a four-stage production cycle, namely, Stage One, Technology Acquisition; Stage Two, Expansion; Stage Three, Relocation/International Diversification; and Stage Four, Consolidation/Disinvestment. Majority of firms will relocate production to other lower cost locations when the industry reaches Stage Three of the production cycle. While production cost is the main concern, some firms may choose to upgrade production technology and improve efficiency ...

This chapter introduces a conceptual framework which links consumers' demographic characteristics with their attitudes toward major shopping area attributes (the push/pull factors), as well as their motivations toward cross-border shopping. It is built on the extant literature of outshopping, cross-border shopping, and consumer switching behavior. It has been tested with data collected from 485 Hong Kong residents. A nonparametric approach will be used to analyze the data. Findings of this study show that “age” and “education” characteristics are good indicators for most of the macrofactors (shopping area attributes). As for microfactors (motivational factors), “age” and “gender” are the best indicators. Results of this study also confirm previous findings that demographic characteristics of consumers affect their cross-border shopping behavior. Low prices on products and good services are the most important pull-factor attracting cross-border shopping. It further reveals that a higher percentage of cross-border shoppers are from lower income families, having only secondary education level, and in the age category of 30–49. Implications for retailers, governments, and tourism-related institutions are discussed.

Results of this study confirms the contention that the theory of internalization is also applicable to small, low‐technology MNEs. But modifications are suggested when applying to small export oriented multinationals. The development of these firms relies more on soft technology than hard technology. Cultural affinity and geographical proximity are the most important location factors for foreign direct investment.

Internationalizing the business administration curriculum has been an ongoing concern for educators. The experience in the United States appears to have encountered certain hurdles and international business education has not yet gone into full swing. On the other hand, for those countries which depend heavily on international business, the subject is generally regarded as important. Four different groups of students in Hong Kong were surveyed. The results show slight differences in their particular area of interest. The area and course rankings, in general, are similar to the findings of studies in North America. Hong Kong students are more interested in risk assessment topics. Based on the findings, various teaching strategies can be formulated. Students' attention can be drawn to relevant global developments and teaching materials can be updated accordingly. Emphasis within each course can also be adjusted each term in view of students' needs. Thus, in order to successfully internationalize a business ...

Uses a product‐oriented approach to examine consumer outshopping patterns in a large and densely polulated city — Hong Kong. Concentrates on one popular consumer product, the camera, as an example, and looks at the possible effects of different product forms and price combinations on outshopping patterns. Analyses the implications of consumer outshopping for the individual retailer, particularly with regard to the formation of channel strategies. Suggests that consumers' outshopping patterns are not only product specific, but are also influenced by product form and the price of that product.