Do managers behave the way theory suggests? A choice-theoretic examination of foreign direct investment location decision-making
AbstractMany empirical examinations of foreign direct investment location choice have relied on the use of secondary data and surveys on the choices made by firms about the form and location of overseas investment. These studies have two inherent and related problems. First, they rely solely on the location choices made by different firms, and assume that the domains of possible options considered were the same. Second, there is an assumption about the rules used by firms to make these decisions, yet the decisions are made by boundedly rational managers. After reviewing the literature, this study examines managers’ choices about foreign investment location through the use of structured experimentation. The results show that in creating sets of investments to ‘consider’, managers appear to follow fairly rational rules. However, the choice of actual ‘investments’ appears less aligned to traditional models. Journal of International Business Studies (2007) 38, 1069–1094. doi:10.1057/palgrave.jibs.8400311
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Journal of International Business Studies.
Volume (Year): 38 (2007)
Issue (Month): 7 (December)
Contact details of provider:
Web page: http://www.palgrave-journals.com/
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Anderson, Edward & Coltman, Tim & Devinney, Timothy M. & Keating, Byron W., 2010. "What Drives the Choice of Third Party Logistics Provider?," MPRA Paper 40508, University Library of Munich, Germany.
- Martijn J. Burger & Bert van der Knaap & Ronald S. Wall, 2013.
"Revealed competition for greenfield investments between European regions,"
Journal of Economic Geography,
Oxford University Press, vol. 13(4), pages 619-648, July.
- Martijn J. Burger & Bert van der Knaap & Ronald S. Wall, 2012. "Revealed Competition for Greenfield Investments between European Regions," Tinbergen Institute Discussion Papers 12-063/3, Tinbergen Institute.
- Deepak Sethi & William Judge & Qian Sun, 2011. "FDI distribution within China: An integrative conceptual framework for analyzing intra-country FDI variations," Asia Pacific Journal of Management, Springer, vol. 28(2), pages 325-352, June.
- Buckley, Peter J., 2009. "Internalisation thinking: From the multinational enterprise to the global factory," International Business Review, Elsevier, vol. 18(3), pages 224-235, June.
- Coltman, Tim & Devinney, Timothy M. & Keating, Byron W., 2010. "Best-worst scaling approach to predict customer choice for 3PL services," MPRA Paper 40492, University Library of Munich, Germany.
- Kedia, Ben L. & Mukherjee, Debmalya, 2009. "Understanding offshoring: A research framework based on disintegration, location and externalization advantages," Journal of World Business, Elsevier, vol. 44(3), pages 250-261, July.
- repec:dgr:uvatin:2012063 is not listed on IDEAS
- Mataloni Jr., Raymond J., 2011. "The structure of location choice for new U.S. manufacturing investments in Asia-Pacific," Journal of World Business, Elsevier, vol. 46(2), pages 154-165, April.
- repec:ner:leuven:urn:hdl:123456789/390851 is not listed on IDEAS
- Oesterle, Michael-Jörg & Richta, Hannah Noriko & Fisch, Jan Hendrik, 2013. "The influence of ownership structure on internationalization," International Business Review, Elsevier, vol. 22(1), pages 187-201.
- Zwinkels, Remco C.J. & Beugelsdijk, Sjoerd, 2010. "Gravity equations: Workhorse or Trojan horse in explaining trade and FDI patterns across time and space?," International Business Review, Elsevier, vol. 19(1), pages 102-115, February.
- Lei, Han-Sheng & Chen, Yung-Shuan, 2011. "The right tree for the right bird: Location choice decision of Taiwanese firms' FDI in China and Vietnam," International Business Review, Elsevier, vol. 20(3), pages 338-352, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).
If references are entirely missing, you can add them using this form.