International business research has long acknowledged the importance of regional factors for foreign direct investment (FDI) by multinational corporations (MNCs). However, significant differences when defining these regions obscure the analysis about how and why regions matter. In response, we develop and empirically document support for a framework to evaluate alternative regional grouping schemes. We demonstrate application of this evaluative framework using data on the global location decisions by US-based MNCs from 1980 to 2000 and two alternative regional grouping schemes. We conclude with discussion of implications for future academic research related to understanding the impact of country groupings on MNC FDI decisions.
|Original language||English (US)|
|Title of host publication||Research Methodology in Strategy and Management|
|Editors||David Ketchen, Donald Bergh|
|Number of pages||30|
|State||Published - 2007|
|Name||Research Methodology in Strategy and Management|
Bibliographical noteFunding Information:
Please contact Paul M. Vaaler regarding this paper. We thank Arash Mahdian and Reza Etebari for research assistance. We thank Howard Guenther and the UIUC Research Board for financial support. All remaining errors are ours.
Copyright 2008 Elsevier B.V., All rights reserved.