FDI Structure, Investment Specificity, and Multinationality Value under Host Market Uncertainty

Sangcheol Song ()
Additional contact information
Sangcheol Song: Saint Joseph’s University

Management International Review, 2013, vol. 53, issue 6, No 2, 795-817

Abstract: Abstract To address mixed results regarding the value of multinationality, we take into account some important but less explored contingent factors related to country and subsidiary asset specificity. From our analyses using a panel dataset of Korean FDI, we find that subsidiaries’ local commitment in terms of FDI depth and local sales are negatively associated with multinationality value, whereas their intra-firm trade links to other affiliates are positively associated with the value. We conclude from our findings that in addition to dispersed operations across countries, other country- and subsidiary-specific factors moderate the effect of FDI breadth on multinationality value. We believe our study contributes to the literature by its fine-grained analysis of the environmental and organizational conditions wherein MNCs’ multinationality generates value.

Keywords: Multinational corporations; Market uncertainty; Flexibility; Multinationality value; Intra-firm trade (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://link.springer.com/10.1007/s11575-013-0181-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:manint:v:53:y:2013:i:6:d:10.1007_s11575-013-0181-4

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/11575

DOI: 10.1007/s11575-013-0181-4

Access Statistics for this article

Management International Review is currently edited by Michael-Jörg Oesterle and Joachim Wolf

More articles in Management International Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().