Journal article

Publication year: 2014

Pages: 952-965

Journal: International Business Review

Volume number: 23

Issue number: 5

ISSN: 0969-5931

eISSN: 1873-6149

DOI Link: https://doi.org/10.1016/j.ibusrev.2014.02.007

Publisher: Elsevier

Abstract: 
Drawing on the resource-based view and FDI theory, the present study introduces the risk of value erosion as a core concept to explain the moderating effect of SMEs' resources (knowledge intensity and international experience) on the relationship between motives (market seeking, resource seeking, strategic asset seeking) and FDI location choice (developed countries vs. developing countries). Testing our theoretical predictions on survey data obtained from 100 German SMEs, our results indicate that knowledge intensity and international experience significantly influence the relationship between motives and SMEs' FDI location choice. Adding this perspective, we provide an enhanced understanding of SMEs' FDI location choice and beyond. (C) 2014 Elsevier Ltd. All rights reserved.

Harvard Citation style: Huett, P., Baum, M., Schwens, C. and Kabst, R. (2014) Foreign direct investment location choice of small- and medium-sized enterprises: The risk of value erosion of firm-specific resources, International Business Review, 23(5), pp. 952-965. https://doi.org/10.1016/j.ibusrev.2014.02.007

APA Citation style: Huett, P., Baum, M., Schwens, C., & Kabst, R. (2014). Foreign direct investment location choice of small- and medium-sized enterprises: The risk of value erosion of firm-specific resources. International Business Review. 23(5), 952-965. https://doi.org/10.1016/j.ibusrev.2014.02.007