International Geography and History in Host Market Competitiveness of Foreign Multinational Enterprises: A Research Agenda

Subramanian Rangan and Aldemir Drummond

Chapter 9 in Creating Value through International Strategy, 2004, pp 109-121 from Palgrave Macmillan

Abstract: Abstract Multinational enterprises (MNEs) from Europe, the USA and Japan now operate and compete against one another in a number of third-host markets. While we know a great deal about the foreign direct investment (FDI) patterns of these MNEs, we know much less about the actual relative performance of these enterprises in the foreign markets in which they compete. The fact that region-by-region performance data are not readily available must partly explain this. Also there possibly is an implicit belief that MNE foreign performance outcomes might not represent an interesting pattern. In other words, the putative dependent variable (host market relative performance) might not be well behaved or meaningfully researchable (say, because a whole host of factors might be expected to influence it, not to mention the possibility of unsystematic differences across sectors). Partly, too, there might be a sense that competition is competition and ultimately, at least in free market settings, the more productive MNE should prevail no matter where.

Keywords: Foreign Direct Investment; Cultural Distance; Entry Mode; Strategic Management Journal; International Business Study (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-00556-3_9

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DOI: 10.1057/9780230005563_9

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