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International Geography and History in Host Market Competitiveness of Foreign Multinational Enterprises: A Research Agenda

In: Creating Value through International Strategy

Author

Listed:
  • Subramanian Rangan
  • Aldemir Drummond

Abstract

Multinational enterprises (MNEs) from Europe, the USA and Japan now operate and compete against one another in a number of third-host markets. While we know a great deal about the foreign direct investment (FDI) patterns of these MNEs, we know much less about the actual relative performance of these enterprises in the foreign markets in which they compete. The fact that region-by-region performance data are not readily available must partly explain this. Also there possibly is an implicit belief that MNE foreign performance outcomes might not represent an interesting pattern. In other words, the putative dependent variable (host market relative performance) might not be well behaved or meaningfully researchable (say, because a whole host of factors might be expected to influence it, not to mention the possibility of unsystematic differences across sectors). Partly, too, there might be a sense that competition is competition and ultimately, at least in free market settings, the more productive MNE should prevail no matter where.

Suggested Citation

  • Subramanian Rangan & Aldemir Drummond, 2004. "International Geography and History in Host Market Competitiveness of Foreign Multinational Enterprises: A Research Agenda," Palgrave Macmillan Books, in: Africa Ariño & Pankaj Ghemawat & Joan E. Ricart (ed.), Creating Value through International Strategy, chapter 9, pages 109-121, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-00556-3_9
    DOI: 10.1057/9780230005563_9
    as

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