Which firms expand to the Middle East: The experience of U.S. multinationals

Avi Fiegenbaum, J. Myles Shaver, Bernard Yeung

Research output: Contribution to journalArticlepeer-review

29 Scopus citations

Abstract

We examine the characteristics of U.S. multinationals that control operations in the Middle East, a geographic region in which the foreign investment climate has been unfavorable. By comparing U.S. multinationals in the Middle East to a random sample of U.S. multinationals absent from the region, we find that the former have significantly greater R&D intensity and sales than the latter. Dividing multinationals with a presence in the Middle East between those in Israel and those in other countries, we find that the former are more R&D intensive, have a greater proportion of overseas sales, but are smaller in terms of total sales. We discuss the strategic implications of these findings and highlight avenues for future research.

Original languageEnglish (US)
Pages (from-to)141-148
Number of pages8
JournalStrategic Management Journal
Volume18
Issue number2
StatePublished - Feb 1 1997

Keywords

  • Firm characteristics
  • Middle East
  • Multinationals

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