MNE theory and the importance of corporate governance

Strange, Roger (2016) MNE theory and the importance of corporate governance. In: Academy of International Business (AIB) 2016 Annual Meeting, 27-30 Jun 2016, New Orleans.

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This paper makes a contribution to the theory of the multinational enterprise (MNE) and, in particular, to why firms undertake foreign direct investment (FDI) rather than alternative strategies. We first argue that it is vital to distinguish between asset-exploiting FDI and assetaugmenting FDI, as the alternative strategies available to the firm differ in each case and hence the rationales for FDI must also differ. Furthermore, given the predominance of controlling shareholders (family, State, institutional) in many firms worldwide, we stress that MNE theory should embrace consideration of the different objectives, risk attitudes and decision-making time horizons of important stakeholders.

Item Type: Conference or Workshop Item (Paper)
Keywords: MNE theory, Corporate governance, Foreign direct investment, Licensing, Explorative and exploitative knowledge activities
Schools and Departments: University of Sussex Business School > Business and Management
Depositing User: Stacey Goldup
Date Deposited: 31 Oct 2016 12:04
Last Modified: 14 Nov 2016 11:47

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