Do MNEs from developed and emerging economies differ in their location choice of FDI? A 36-year review

Xiaoqing Li*, Rose Quan, Maria Cristina Stoian, Goudarz Azar

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

23 Citations (Scopus)

Abstract

This study examines the extent to which MNEs from developed (DMNEs) and emerging (EMNEs) economies differ in Location behaviour. Studies on MNE location choices have failed to capture the changing FDI landscape and leave the inconsistent findings unexplained. We address this gap by systematically reviewing the extant literature on location choices of DMNEs and EMNEs over the past 36 years – from the introduction of the OLI model to 2016. Key themes emerging from the review reflect a comprehensive picture, capturing the impact of multiple factors affecting location choices of DMNEs and EMNEs. Future research is challenged by: a. adopting an integrated approach examining three levels – individual (managerial), firm (ownership structure, type of FDI, internationalisation stages, and the different nature of ownership advantage), and context of location decisions (home, host, sub-national, regional, supranational, and networking); b. refining or developing theories to capture the dynamic picture of MNE internationalisation.

Original languageEnglish
Pages (from-to)1089-1103
Number of pages15
JournalInternational Business Review
Volume27
Issue number5
Early online date10 Apr 2018
DOIs
Publication statusPublished - 1 Oct 2018

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