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Information Search for Foreign Direct Investment Using Two-Stage Country Selection Procedures: A New Procedure†

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  • Chaim Meyer Ehrman

    (The University of illnois at Chicago)

  • Morris Hamburg

    (University of Pennsylvania)

Abstract

This paper reports the development and testing of a normative model for determining how firms should select the countries to be used in the information search for foreign direct investment. After a subset of countries is selected in the first stage of the decision process, a final selection process chooses the country with the best score within the subset: A “percentile method of subset selection” for singling out clusters of countries for information search and for identifying the best of the subset is presented that performs better than maximum country rankings (“top means”) and maximum uncertainty (“top variance”) techniques of subset selection. As an illustration, the percentile selection method is applied empirically.© 1986 JIBS. Journal of International Business Studies (1986) 17, 93–116

Suggested Citation

  • Chaim Meyer Ehrman & Morris Hamburg, 1986. "Information Search for Foreign Direct Investment Using Two-Stage Country Selection Procedures: A New Procedure†," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(2), pages 93-116, June.
    • Handle: RePEc:pal:jintbs:v:17:y:1986:i:2:p:93-116
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    Cited by:

    1. Jiménez, Alfredo & Salvaj, Erica & Lee, Jeoung Yul, 2018. "Policy risk, distance, and private participation projects in Latin America," Journal of Business Research, Elsevier, vol. 88(C), pages 123-131.
    2. Jorge MONGAY, 2017. "Market Economies Potentialities and Cultural Clusters. A Global and Longitudinal Study," Expert Journal of Economics, Sprint Investify, vol. 5(1), pages 1-13.
    3. Li, Tiger & Cavusgil, S. Tamer, 1995. "A classification and assessment of research streams in International Marketing," International Business Review, Elsevier, vol. 4(3), pages 251-277, September.

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