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An analysis of firm-specific resources and foreign direct investment in the United States

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  • Trevino, Len J.
  • Grosse, Robert

Abstract

This firm-specific analysis of foreign direct investment in the United States is guided by linking the resource-based view of the firm with control variables from international business theory. Specifically, we develop a multivariate regression model based on firm-specific resources that help explain firms' foreign direct investment in the United States. This time-series, cross-sectional study utilizes an original database of more than 50 multinational enterprises and comprises complete FDI activity over a fifteen-year period; survey data were obtained directly from the company affiliates themselves. The firms demonstrate increased propensity for FDI when they are more technology intensive, when their managers have more international experience, and when they are more profitable, controlling for firm size, financial leverage, prior global expansion, and home-country currency variation.

Suggested Citation

  • Trevino, Len J. & Grosse, Robert, 2002. "An analysis of firm-specific resources and foreign direct investment in the United States," International Business Review, Elsevier, vol. 11(4), pages 431-452, August.
  • Handle: RePEc:eee:iburev:v:11:y:2002:i:4:p:431-452
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    Cited by:

    1. Trevino, Len J. & Thomas, Douglas E. & Cullen, John, 2008. "The three pillars of institutional theory and FDI in Latin America: An institutionalization process," International Business Review, Elsevier, vol. 17(1), pages 118-133, February.
    2. repec:spr:manint:v:52:y:2012:i:2:d:10.1007_s11575-012-0136-1 is not listed on IDEAS
    3. Mayrhofer, Ulrike, 2004. "The influence of national origin and uncertainty on the choice between cooperation and merger-acquisition: an analysis of French and German firms," International Business Review, Elsevier, vol. 13(1), pages 83-99, February.
    4. Faisal Khan & Saif-Ur-Rehman Khan & Hashim Khan, 2016. "Pricing of Risk, Various Volatility Dynamics and Macroeconomic Exposure of Firm Returns: New Evidence on Age Effect," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 551-561.
    5. repec:eee:iburev:v:27:y:2018:i:1:p:113-124 is not listed on IDEAS
    6. Liu, Xiaohui & Buck, Trevor & Shu, Chang, 2005. "Chinese economic development, the next stage: outward FDI?," International Business Review, Elsevier, vol. 14(1), pages 97-115, February.
    7. Almor, Tamar & Hashai, Niron, 2004. "The competitive advantage and strategic configuration of knowledge-intensive, small- and medium-sized multinationals: a modified resource-based view," Journal of International Management, Elsevier, vol. 10(4), pages 479-500.
    8. Santangelo, Grazia Domenica, 2012. "The tension of information sharing: Effects on subsidiary embeddedness," International Business Review, Elsevier, pages 180-195.
    9. 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.
    10. Byung Park, 2010. "What matters to managerial knowledge acquisition in international joint ventures? High knowledge acquirers versus low knowledge acquirers," Asia Pacific Journal of Management, Springer, pages 55-79.
    11. Lin, Feng-Jyh, 2010. "The determinants of foreign direct investment in China: The case of Taiwanese firms in the IT industry," Journal of Business Research, Elsevier, vol. 63(5), pages 479-485, May.
    12. Lee, Jaeho & Slater, Jim, 2007. "Dynamic capabilities, entrepreneurial rent-seeking and the investment development path: The case of Samsung," Journal of International Management, Elsevier, vol. 13(3), pages 241-257, September.
    13. Burpitt, William J. & Rondinelli, Dennis A., 2004. "Foreign-owned companies' entry and location strategies in a U.S. market: a study of manufacturing firms in North Carolina," Journal of World Business, Elsevier, vol. 39(2), pages 136-150, May.

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