Do public support services matter in the multilocation process in China?

Abstract

Purpose – During the last decade the demand to comprehend the overarching success factors of the multilocation process in distant countries such as China has increased significantly. In this context, the purpose of this paper is to explore and understand the nature and scope of the collaboration between the public support services (PSS) in China and the Spanish enterprises which decided to be multilocated there. Design/methodology/approach – The present study examines the necessity of the PSS in China by employing a review of literature as well as both quantitative and qualitative surveys from 31 Spanish companies multilocated in China. Findings – The main conclusions highlight the fact that the PSS do not seem to have a big and homogenous influence on the multilocation process, although those companies with higher levels of commitment that have been operating in China for a longer time have used it more frequently. Originality/value – While other studies of multilocation have isolated the companies from their host environment, the aim of this paper is to evaluate the weak links between the PSS and companies in a culturally and psychically distant market. By providing an insight into the dynamics of how firms interact and collaborate with the PSS, this study contributes to guiding policy makers and managers in designing and implementing strategies to support enterprises in the multilocation process in China.