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Property rights and international investment in information technology services
Author(s) -
Jandhyala Srividya
Publication year - 2013
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2032
Subject(s) - internationalization , de facto , property rights , business , service (business) , investment (military) , information technology , industrial organization , intellectual property , commerce , economics , international trade , marketing , politics , microeconomics , law , political science
Many modern information technology services are increasingly being produced in a host country to serve clients in an offshore location. As a result, the internationalization of service functions is beginning to resemble that of their more traditional manufacturing counterparts. This paper examines the role of formal and de facto property rights protection in the offshore location choice of information technology services. I also explore the role of a firm's global subsidiary network and its experience with similar property rights regimes. Using investment data based on 152 firms and their international information service investments between 2002–2006, the empirical results highlight the role of de facto property rights protection and related experience in location choice.Copyright © 2012 John Wiley & Sons, Ltd.