Accessibility navigation

History matters: colonial-based connectivity and foreign headquarter location choice

Botella Andreu, A. and Lavoratori, K. ORCID: (2022) History matters: colonial-based connectivity and foreign headquarter location choice. Management International Review, 62. pp. 711-739. ISSN 1861-8901

[img] Text (Open access) - Published Version
· Restricted to Repository staff only
· The Copyright of this document has not been checked yet. This may affect its availability.
· Available under License Creative Commons Attribution.

[img] Text - Accepted Version
· Restricted to Repository staff only


It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing.

To link to this item DOI: 10.1007/s11575-022-00481-2


In this study, we argue that European countries’ extensive relationships with former colonies represent a location factor that attracts foreign headquarter investments. The strategic role of foreign headquarters as coordinators, opportunity detectors, and global bridgeheads makes the location choice of headquarter activities sensitive to historical-based institutional connections. Drawing on a sample of 2,230 foreign headquarter investments in Europe, we find that the stronger the combined effect of historical connections and current economic relationships with former colonies, the higher the probability of attracting headquarter investment projects. We refer to this combined characteristic as colonial-based connectivity. The study findings support the hypothesis that past colonial relationships and historical context influence FDI decisions and location preferences. We contribute to the literature by advancing the understanding of foreign headquarter location choices, and by demonstrating the importance of historical context in international business research. We emphasize how the former colonial influence continues to confer advantages upon some countries, including the attraction of FDI.

Item Type:Article
Divisions:Henley Business School > International Business and Strategy
ID Code:106549

University Staff: Request a correction | Centaur Editors: Update this record

Page navigation