Location strategies and performance of developing country MNCS

Abstract

This dissertation aims to contribute to the study of foreign direct investment location, one of the most important and complex decisions facing multinational companies. The dissertation comprises two essays, both of which are based on organizational learning theory. I use a unique database, and identify the differences between developing and developed country MNCs and their (differences¿) implications for location choices. My study raises questions concerning the generalizability of traditional International Business theories, which are draw from developed country MNCs. In the first paper, I analyze the antecedents and consequences of different location strategies of developing country MNCs. In the second paper, I draw mainly from organizational learning theory, and model the trade-offs between exploitation and exploration in location choice. The theoretical arguments, based on organizational learning theory, and the findings I present in this dissertation enrich our understanding about the location strategies of developing country multinationals.