Abstract
This study examined several hypotheses regarding the location choice of foreign direct investment from newly industrialized economies (NIEs). Using a sample of 328 Taiwanese firms in the analysis, this study found that the firms’ motivations had a significant impact on the choice of their investment location (developed countries vs. less developed countries), yet this impact was moderated by the capabilities that the firms possessed. The results suggest that both asset-exploitation and asset-seeking aspects of investments are predictive of the NIE firms’ location choice of investment.
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*Shige Makino is Professor in the Department of Management at the Chinese University of Hong Kong. His current research interests include strategies for international expansion of Asian enterprises, inter-organizational imitation, and management of international strategic alliances.
**Chung-Ming Lau is currently Chairman and Professor in the Department of Management at the Chinese University of Hong Kong. His research interests include strategic change, organizational culture, and management of Chinese organizations.
***Ryh-song Yeh is Professor of Guanghua School of Management at Peking University. His current research interests are in leadership and cultural values in Chinese context, and international management of Chinese firms.
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Makino, S., Lau, CM. & Yeh, RS. Asset-Exploitation Versus Asset-Seeking: Implications for Location Choice of Foreign Direct Investment from Newly Industrialized Economies. J Int Bus Stud 33, 403–421 (2002). https://doi.org/10.1057/palgrave.jibs.8491024
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DOI: https://doi.org/10.1057/palgrave.jibs.8491024