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

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  • Lee, In Hyeock
  • Rugman, Alan M.
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    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.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 18 (2012)
    Issue (Month): 2 ()
    Pages: 132-146

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    Handle: RePEc:eee:intman:v:18:y:2012:i:2:p:132-146

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    Related research

    Keywords: Regional strategy; Multinational enterprises; Firm-specific advantages; Performance; R&D intensity; SGA intensity; Inward FDI;

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