Cluster Internationalization to Tax Havens by Multinational Enterprises: An Exploration of Imitative Behaviour

Ha-Phuong Luong; Chris Jones; Yama Temouri

doi:10.1016/j.jwb.2025.101630

Cluster Internationalization to Tax Havens by Multinational Enterprises: An Exploration of Imitative Behaviour

Ha-Phuong Luong
, Chris Jones
, Yama Temouri

Research output: Contribution to journal › Article › peer-review

5 Citations (SciVal)

19 Downloads (Pure)

Abstract

This paper explores the factors that influence the internationalization of multinational enterprises (MNEs) from clusters, with a particular focus on the use of tax havens. Institutional Theory is used as our theoretical framework, with mimetic isomorphism highlighted as a primary mechanism connecting cluster characteristics to MNE internationalization. By analyzing firm-level data for the UK and Germany from 2008-2019, we show that institutional features within clusters—such as imitation, the co-location of professional services, and industrial concentration—facilitate this form of internationalization. Furthermore, the findings improve research on cluster internationalization, indicating that the imitation effect is amplified by firm leadership and experience.

Original language	English
Article number	101630
Number of pages	22
Journal	Journal of World Business
Volume	60
Issue number	4
Early online date	27 Feb 2025
DOIs	https://doi.org/10.1016/j.jwb.2025.101630
Publication status	Published - Jun 2025

Bibliographical note

Data Access Statement

The authors do not have permission to share data.

Funding

The authors thank the Leverhulme Trust for helping to fund this research (Grant RPG-2021-400). The authors also sincerely thank Editor Ajai Gaur, Associate Editor Ulf Andersson, and the anonymous reviewers for their insightful feedback and constructive suggestions, which greatly improved the development and quality of this paper. Special thanks are also due to Davide Castellani, Brian Silverman, Matt Olczak, Hinrich Voss, Tomasz Mickiewicz, the Centre for Business Prosperity at Aston University (CBP), and the participants of the AoM, AIB UK-Ireland, and AIB World Conferences for their valuable comments and insights during the development of this manuscript.

Keywords

Tax Havens
Clusters
Multinational Enterprises
Imitation
Institutional Isomorphism

Access to Document

10.1016/j.jwb.2025.101630Licence: CC BY 4.0

Luong Jones and Temouri_Cluster internationalization to Tax Havens by MNEs_exploration of imitative behaviour
Crown Copyright © 2025 Published by Elsevier Inc. This is an open access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/).
Final published version, 1.5 MBLicence: CC BY 4.0

Cite this

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abstract = "This paper explores the factors that influence the internationalization of multinational enterprises (MNEs) from clusters, with a particular focus on the use of tax havens. Institutional Theory is used as our theoretical framework, with mimetic isomorphism highlighted as a primary mechanism connecting cluster characteristics to MNE internationalization. By analyzing firm-level data for the UK and Germany from 2008-2019, we show that institutional features within clusters—such as imitation, the co-location of professional services, and industrial concentration—facilitate this form of internationalization. Furthermore, the findings improve research on cluster internationalization, indicating that the imitation effect is amplified by firm leadership and experience.",

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AU - Temouri, Yama

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N2 - This paper explores the factors that influence the internationalization of multinational enterprises (MNEs) from clusters, with a particular focus on the use of tax havens. Institutional Theory is used as our theoretical framework, with mimetic isomorphism highlighted as a primary mechanism connecting cluster characteristics to MNE internationalization. By analyzing firm-level data for the UK and Germany from 2008-2019, we show that institutional features within clusters—such as imitation, the co-location of professional services, and industrial concentration—facilitate this form of internationalization. Furthermore, the findings improve research on cluster internationalization, indicating that the imitation effect is amplified by firm leadership and experience.

AB - This paper explores the factors that influence the internationalization of multinational enterprises (MNEs) from clusters, with a particular focus on the use of tax havens. Institutional Theory is used as our theoretical framework, with mimetic isomorphism highlighted as a primary mechanism connecting cluster characteristics to MNE internationalization. By analyzing firm-level data for the UK and Germany from 2008-2019, we show that institutional features within clusters—such as imitation, the co-location of professional services, and industrial concentration—facilitate this form of internationalization. Furthermore, the findings improve research on cluster internationalization, indicating that the imitation effect is amplified by firm leadership and experience.

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KW - Clusters

KW - Multinational Enterprises

KW - Imitation

KW - Institutional Isomorphism

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DO - 10.1016/j.jwb.2025.101630

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VL - 60

JO - Journal of World Business

JF - Journal of World Business

IS - 4

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ER -

Cluster Internationalization to Tax Havens by Multinational Enterprises: An Exploration of Imitative Behaviour

Abstract

Bibliographical note

Data Access Statement

Funding

Keywords

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