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Predictors of inward foreign direct investment: A communication perspective

Authors
Froese, Fabian JintaePark, HyeminLee, Si-young
Issue Date
4-Oct-2010
Publisher
ACADEMIC JOURNALS
Keywords
Foreign direct investment; location choice; communication; language; knowledge; culture
Citation
AFRICAN JOURNAL OF BUSINESS MANAGEMENT, v.4, no.13, pp.2780 - 2789
Indexed
SSCI
AHCI
Journal Title
AFRICAN JOURNAL OF BUSINESS MANAGEMENT
Volume
4
Number
13
Start Page
2780
End Page
2789
URI
https://scholar.korea.ac.kr/handle/2021.sw.korea/115532
ISSN
1993-8233
Abstract
A plethora of studies has investigated the reasons for foreign direct investment (FDI) location, yet findings are still inconclusive and sometimes even contradictory. This study offers a new perspective to better understand FDI location. As communication is at the core of any transaction, including FDI transactions, this study introduced Berlo's communication model into the context of FDI location. Indeed, the postulated model explained a large portion of FDI location in 56 countries. To be more specific, English language proficiency, knowledge, less in-group collectivism, less uncertainty avoidance, and less assertiveness of the FDI host country population were associated with higher levels of inward FDI.
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