Host-country location decisions of early movers and latecomers: The role of local density and experiential learning Academic Article uri icon


  • Service firms such as banks and hotels typically locate multiple foreign affiliates in the same host country. Often, these location patterns occur in waves with early movers followed by latecomers; for example, the early entries of Japanese banks into the U.S. market in the 1970s and 1980s were followed by emerging-market Asian banks in the 1990s. Using insights from the agglomeration and organizational learning literatures, we argue that local density and experiential learning affect location choices within a host country, and that these relationships differ between early movers and latecomers. We test and find support for our arguments using a sample of Asian banks in the United States over 1997-2003. © 2011 Elsevier Ltd.

author list (cited authors)

  • Zhu, H., Eden, L., Miller, S. R., Thomas, D. E., & Fields, P.

citation count

  • 22

publication date

  • April 2012