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Economic Performance of U.S. Multinational Manufacturing Firms: The Linkages between Foreign Direct Investment and Firm Strategy

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Listed:
  • Pablo A. Garcia-Fuentes
  • Gustavo F. C. Ferreira
  • P. Lynn Kennedy
  • Felipe Perez

Abstract

This research uses an unbalanced date set for a sample of U.S. multinational manufacturing firms to evaluate the effect of the relationships between firm strategic factors (i.e. firm size, marketing intensity and capital intensity) and foreign direct investment (FDI) on firm’s financial performance. Specifically, this study evaluates the direct effect of FDI activity on firm performance, the indirect effect of FDI activity on firm performance, and the moderating effect of FDI activity on the relationships between strategic factors and firm performance. The results suggest that FDI activity plays an important role on the financial strength of U.S. multinational manufacturing firms, and reveal interesting interactions between FDI and some firm strategic factors and their positive effect on financial performance.

Suggested Citation

  • Pablo A. Garcia-Fuentes & Gustavo F. C. Ferreira & P. Lynn Kennedy & Felipe Perez, 2017. "Economic Performance of U.S. Multinational Manufacturing Firms: The Linkages between Foreign Direct Investment and Firm Strategy," International Business Research, Canadian Center of Science and Education, vol. 10(1), pages 240-252, January.
  • Handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:1:p:240-252
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    References listed on IDEAS

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    Cited by:

    1. Min-Lee Chan & Kannika Duangnate & Cho-Min Lin, 2020. "Performance and Cash Value of Taiwan Multinational Firms’ FDI in ASEAN," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(2), pages 1-2.
    2. Hsiang-Hsi Liu & Teng-Kun Wang & Guan-Ting Liu, 2020. "Workforce Diversity Affecting on the Non-financial Performance of Taiwanese Multinational Enterprises under Different Environmental Factors: CEOs' Viewpoints," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(4), pages 1-7.

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    More about this item

    Keywords

    United States; multinational firms; manufacturing; foreign direct investment; firm strategies; financial performance;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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