Factors determining the location decisions of Spanish MNEs: an analysis based on the investment development path

Jose I Galan, Javier Gonzalez-Benito and Jose A Zuñiga-Vincente
Additional contact information
Jose I Galan: Departamento de Administración y Economía de la Empresa, Universidad de Salamanca, Spain
Javier Gonzalez-Benito: Departamento de Administración y Economía de la Empresa, Universidad de Salamanca, Spain
Jose A Zuñiga-Vincente: Departamento de Economía de la Empresa (Administración, dirección y organización), Universidad Rey Juan Carlos, Madrid, Spain

Journal of International Business Studies, 2007, vol. 38, issue 6, 975-997

Abstract: On the basis of theoretical assumptions approached via the investment development path (IDP), this study examines the most important factors for and against the location decisions in foreign direct investment taken by multinational enterprises, considering host countries at very different stages of economic development (Latin American and European Union countries). We carry out different kinds of analysis on a sample of 103 firms belonging to a medium-sized country that has recently achieved the status of developed country. The results reveal that the importance that home country firm managers give to diverse location factors depends to a certain extent on the stage that each group of host countries has reached in the IDP. In line with prior research, we find that firm managers consider mainly the group of factors associated with strategic asset-seeking when deciding to locate their investments in the group of more developed countries (European Union). In contrast, our results show that when these firm managers choose the group of less developed countries (Latin America), social and cultural factors play a more determinant role, thus suggesting the importance of historical and cultural ties between the home and host countries. Journal of International Business Studies (2007) 38, 975–997. doi:10.1057/palgrave.jibs.8400304

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v38/n6/pdf/8400304a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v38/n6/full/8400304a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:38:y:2007:i:6:p:975-997

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().