WHICH FIRMS EXPAND TO THE MIDDLE EAST: THE EXPERIENCE OF U.S. MULTINATIONALS

Avi Fiegenbaum, J. Myles Shaver and Bernard Yeung

Strategic Management Journal, 1997, vol. 18, issue 2, 141-148

Abstract: We examine the characteristics of U.S. multinationals that control operations in the Middle East, a geographic region in which the foreign investment climate has been unfavorable. By comparing U.S. multinationals in the Middle East to a random sample of U.S. multinationals absent from the region, we find that the former have significantly greater R&D intensity and sales than the latter. Dividing multinationals with a presence in the Middle East between those in Israel and those in other countries, we find that the former are more R&D intensive, have a greater proportion of overseas sales, but are smaller in terms of total sales. We discuss the strategic implications of these findings and highlight avenues for future research. © 1997 by John Wiley & Sons, Ltd.

Date: 1997
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https://doi.org/10.1002/(SICI)1097-0266(199702)18:23.0.CO;2-Y

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