Host country cultural influences on foreign direct investment

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Serval ID
serval:BIB_A8B6783DC666
Type
Article: article from journal or magazin.
Collection
Publications
Title
Host country cultural influences on foreign direct investment
Journal
Management International Review
Author(s)
Bhardwaj A., Dietz J., Beamish P. W.
ISSN
0938-8249
Publication state
Published
Issued date
2007
Peer-reviewed
Oui
Volume
47
Number
1
Pages
29-50
Language
english
Abstract
This paper provides a novel perspective towards understanding the influence of host country culture on the location choices of foreign firms. Host country cultural variables: uncertainty avoidance and trust, influence the location choices of foreign firms such that foreign firms prefer to invest in nations with low levels of uncertainty avoidance and high levels of trust. In addition to direct effects, it is hypothesize that uncertainty avoidance moderates the relationship between host country trust and levels of foreign direct investment (FDI) such that the relationship between trust and FDI becomes weaker, as uncertainty avoidance increases. The results in a sample of 43 nations are supportive of the hypothesized main effect of uncertainty avoidance and the moderating effects, and partially supportive of the main effect of trust on FDI, after controlling for economic, human capital, and governance infrastructure variables.
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05/05/2009 11:33
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20/08/2019 15:13
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