IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v5y1999i4p299-317.html

Country location choices of service multinationals: An empirical study of the international hotel sector

Author

Listed:
  • Kundu, Sumit K.
  • Contractor, Farok J.

Abstract

This article examines international country location choices for equity investment undertaken by global hotel chains. Why do certain host countries attract more hotel investment than others? A second underlying issue that we tackle in this article is whether the traditional foreign direct investment determinants used in past studies on manufacturing also apply to services--or whether service sector-specific determinants are better explanatory variables for understanding the distribution of service foreign direct investment across countries.

Suggested Citation

  • Kundu, Sumit K. & Contractor, Farok J., 1999. "Country location choices of service multinationals: An empirical study of the international hotel sector," Journal of International Management, Elsevier, vol. 5(4), pages 299-317.
    • Handle: RePEc:eee:intman:v:5:y:1999:i:4:p:299-317
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425399000174
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Goldberg, Lawrence G. & Johnson, Denise, 1990. "The determinants of US banking activity abroad," Journal of International Money and Finance, Elsevier, vol. 9(2), pages 123-137, June.
    2. Horst, Thomas, 1972. "Firm and Industry Determinants of the Decision to Invest Abroad: An Empirical Study," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 258-266, August.
    3. Fagerberg, Jan, 1988. "International Competitiveness: Errata," Economic Journal, Royal Economic Society, vol. 98(393), pages 1203-1203, December.
    4. Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
    5. Esfahani, Hadi Salehi, 1991. "Exports, imports, and economic growth in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 35(1), pages 93-116, January.
    6. Jamuna Agarwal, 1980. "Determinants of foreign direct investment: A survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(4), pages 739-773, December.
    7. Ralph M Gaedeke, 1973. "Selected U.S. Multinational Service Firms in Perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 4(1), pages 61-66, March.
    8. Peter Wilson, 1994. "Tourism Earnings Instability in Singapore, 1972-88," Journal of Economic Studies, Emerald Group Publishing, vol. 21(1), pages 41-51, January.
    9. Goldberg, Lawrence G. & Saunders, Anthony, 1981. "The determinants of foreign banking activity in the United States," Journal of Banking & Finance, Elsevier, vol. 5(1), pages 17-32, March.
    10. Grubaugh, Stephen G, 1987. "Determinants of Direct Foreign Investment," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 149-152, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saroja Selvanathan & E.A. Selvanathan & Brinda Viswanathan, 2009. "Causality between Foreign Direct Investment and Tourism : Empirical Evidence from India," Finance Working Papers 22944, East Asian Bureau of Economic Research.
    2. Puciato, Daniel, 2016. "Attractiveness of municipalities in South-Western Poland as determinants for hotel chain investments," Tourism Management, Elsevier, vol. 57(C), pages 245-255.
    3. Maja Nikšić Radić & Daniel Dragičević & Marina Barkiđija Sotošek, 2019. "Causality between Terrorism and FDI in Tourism: Evidence from Panel Data," Economies, MDPI, vol. 7(2), pages 1-19, May.
    4. Oh, Chang Hoon & Sohl, Timo & Rugman, Alan M., 2015. "Regional and product diversification and the performance of retail multinationals," Journal of International Management, Elsevier, vol. 21(3), pages 220-234.
    5. Angel Higuerey & Christian Viñan-Merecí & Zulema Malo-Montoya & Valentín-Alejandro Martínez-Fernández, 2020. "Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel Industry in Ecuador," Sustainability, MDPI, vol. 12(4), pages 1-18, February.
    6. Kundu, Sumit K. & Lahiri, Somnath, 2015. "Turning the Spotlight on Service Multinationals: New Theoretical Insights and Empirical Evidence," Journal of International Management, Elsevier, vol. 21(3), pages 215-219.
    7. Adina Smaranda COSMA & Cristina FLESERIU & Marius BOTA & Alexandru NEDELEA, 2015. "Aspects Of Romanian Marketing Environment For International Hotel Chains," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(1), pages 1-5, January.
    8. K. Ravinthirakumaran & E. A. Selvanathan & S. Selvanathan & T. Singh, 2019. "Tourism and Foreign Direct Investment Inflows in Sri Lanka," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 248-273, September.
    9. Ayhan Tecel & Salih Katircioğlu & Elham Taheri & Festus Victor Bekun, 2020. "Causal interactions among tourism, foreign direct investment, domestic credits, and economic growth: evidence from selected Mediterranean countries," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 19(3), pages 195-212, September.
    10. Serafini, Giovanni O. & Szamosi, Leslie T., 2015. "Five star hotels of a Multinational Enterprise in countries of the transitional periphery: A case study in human resources management," International Business Review, Elsevier, vol. 24(6), pages 972-983.
    11. Kirca, Ahmet H. & Fernandez, Whitney Douglas & Kundu, Sumit K., 2016. "An empirical analysis and extension of internalization theory in emerging markets: The role of firm-specific assets and asset dispersion in the multinationality-performance relationship," Journal of World Business, Elsevier, vol. 51(4), pages 628-640.
    12. Li, Xinjian & Huang, Songshan (Sam) & Song, Changyao, 2017. "China's outward foreign direct investment in tourism," Tourism Management, Elsevier, vol. 59(C), pages 1-6.
    13. Sumei Tang & E.A. Selvanathan & Saroja Selvanathan, 2007. "The Relationship between Foreign Direct Investment and Tourism: Empirical Evidence from China," Tourism Economics, , vol. 13(1), pages 25-39, March.
    14. Moore, Winston & CRAIGWELL, ROLAND, 2008. "Foreign direct investment and tourism in SIDS: evidence from panel causality tests," MPRA Paper 33438, University Library of Munich, Germany.
    15. Falk, Martin, 2016. "A gravity model of foreign direct investment in the hospitality industry," Tourism Management, Elsevier, vol. 55(C), pages 225-237.
    16. Teng, Lefa & Huang, Dan & Pan, Yigang, 2017. "The Performance of MNE Subsidiaries in China: Does It Matter to Be Close to the Political or Business Hub?," Journal of International Management, Elsevier, vol. 23(3), pages 292-305.
    17. Yongfeng Zhang & Peng Wang & Jongwook Kwon, 2021. "CSR in China: Does Being Close to the Central or Local Government Matter?," Sustainability, MDPI, vol. 13(16), pages 1-12, August.
    18. Sebald, A. & de Neubourg, C.R.J., 2003. "Paying for pensions and other public expenditures : overtaxing our children?," Research Memorandum 052, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    19. Daniel Puciato & Piotr Oleśniewicz & Agnieszka Gawlik & Julita Markiewicz-Patkowska & Krzysztof Widawski & Teresa Słaby & Rafał Kasprzak & Barbara Mróz-Gorgoń, 2019. "Location factors for budget, medium standard and luxury hotels based on the example of hotels operating in Poland," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 29(1), pages 61-73.
    20. Santos, Maria & Brochado, Ana & Esperança, José, 2016. "Foreign direct investment patterns of global hotel chains," Journal of Business Research, Elsevier, vol. 69(11), pages 5235-5240.
    21. Perić Jože & Radić Maja Nikšić, 2016. "FDI-led tourism growth hypothesis: empirical evidence from Croatian tourism," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 7(3), pages 168-175, December.
    22. Chang, Cheng-Chang & Chen, Ju-Long, 2012. "A foreign expansion model with multi-site locations in service industries," International Journal of Production Economics, Elsevier, vol. 136(1), pages 102-109.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yuko Kinoshita, 2001. "Firm Size and Determinants of Foreign Direct Investment," Industrial Organization 0012006, University Library of Munich, Germany.
    2. Moshirian, Fariborz & Pham, Toan, 2000. "Determinants of US investment in real estate abroad," Journal of Multinational Financial Management, Elsevier, vol. 10(1), pages 63-72, January.
    3. Moshirian, Fariborz, 1999. "Sources of growth in international insurance services," Journal of Multinational Financial Management, Elsevier, vol. 9(2), pages 177-194, March.
    4. Borsos-Torstila, Julianna, . "The Determinants of Foreign Direct Investment Operations of Finnish MNCs in Transition Economies 1990-1995," ETLA A, The Research Institute of the Finnish Economy, number 28, June.
    5. Mann, Catherine L., 1993. "Determinants of Japanese direct investment in US manufacturing industries," Journal of International Money and Finance, Elsevier, vol. 12(5), pages 523-541, October.
    6. Cull, Robert & Martinez Peria, Maria Soledad, 2007. "Foreign bank participation and crises in developing countries," Policy Research Working Paper Series 4128, The World Bank.
    7. Buch, Claudia M. & Lipponer, Alexander, 2004. "FDI versus cross-border financial services: The globalisation of German banks," Discussion Paper Series 1: Economic Studies 2004,05, Deutsche Bundesbank.
    8. Avkiran, Necmi K., 2006. "Developing foreign bank efficiency models for DEA grounded in finance theory," Socio-Economic Planning Sciences, Elsevier, vol. 40(4), pages 275-296, December.
    9. Thomas, Douglas E. & Grosse, Robert, 2001. "Country-of-origin determinants of foreign direct investment in an emerging market: the case of Mexico," Journal of International Management, Elsevier, vol. 7(1), pages 59-79.
    10. Fung, Justin G. & Bain, Elisa A. & Onto, John G. & Harper, Ian R., 2002. "A decade of internationalization: the experience of an Australian retail bank," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 12(4-5), pages 399-417.
    11. Fabienne Boudier‐Bensebaa, 2005. "Agglomeration economies and location choice: Foreign direct investment in Hungary," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(4), pages 605-628, October.
    12. Annick Pamen Nyola & Alain Sauviat & Amine Tarazi, 2022. "How does regulation affect the organizational form of foreign banks' presence in developing versus developed countries?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 2367-2419, April.
    13. Moshirian, Fariborz, 2001. "International investment in financial services," Journal of Banking & Finance, Elsevier, vol. 25(2), pages 317-337, February.
    14. Erdal Demirhan & Mahmut Masca, 2008. "Determinants of foreign direct investment flows to developing countries: a cross-sectional analysis," Prague Economic Papers, Prague University of Economics and Business, vol. 2008(4), pages 356-369.
    15. Montserrat Álvarez, 2003. "FDI Determinant Factors: The Case of Catalan Multinational Manufacturing Firms," Working Papers 2003/4, Institut d'Economia de Barcelona (IEB).
    16. Brealey, R. A. & Kaplanis, E. C., 1996. "The determination of foreign banking location," Journal of International Money and Finance, Elsevier, vol. 15(4), pages 577-597, August.
    17. Azrak, Paul & Wynne, Kevin, 1995. "Protectionism and Japanese direct investment in the United States," Journal of Policy Modeling, Elsevier, vol. 17(3), pages 293-305, June.
    18. Kim, Yun Jung & Tesar, Linda L. & Zhang, Jing, 2015. "The impact of foreign liabilities on small firms: Firm-level evidence from the Korean crisis," Journal of International Economics, Elsevier, vol. 97(2), pages 209-230.
    19. Narula, Rajneesh & Wakelin, Katharine, 1998. "Technological competitiveness, trade and foreign direct investment," Structural Change and Economic Dynamics, Elsevier, vol. 9(3), pages 373-387, September.
    20. Zhang, Jianhong & Jacobs, Jan & Witteloostuijn, Arjen van, 2004. "Multinational enterprises, foreign direct investment and trade in China : A cointegration and Granger-causality approach," CCSO Working Papers 200413, University of Groningen, CCSO Centre for Economic Research.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:5:y:1999:i:4:p:299-317. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.