Firm-specific advantages, inward FDI origins, and performance of multinational enterprises

In Hyeock Lee and Alan Rugman

Journal of International Management, 2012, vol. 18, issue 2, 132-146

Abstract: Using original data on large Korean multinational enterprises (MNEs), this paper examines the impact that their firm-specific advantages (FSAs) have on performance as and when they receive inward direct investment from foreign countries. Two types of FSAs are examined: innovation capabilities measured by research and development (R&D) intensity and marketing capabilities measured by selling, general, and administrative (SGA) intensity. It is found that both FSAs affect diverse MNE performance in a non-linear U-shaped fashion, and that the home region origin of the inward foreign direct investment (FDI) moderates the curvilinear relationship between the two constructs into an inverted U-shaped one.

Keywords: Regional strategy; Multinational enterprises; Firm-specific advantages; Performance; R&D intensity; SGA intensity; Inward FDI (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intman:v:18:y:2012:i:2:p:132-146

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DOI: 10.1016/j.intman.2011.11.001

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