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Economic Performance of U.S. Multinational Agribusinesses: Foreign Direct Investment and Firm Strategy

Author

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  • Garcia-Fuentes, Pablo A.
  • Ferreira, Gustavo F.C.
  • Kennedy, P. Lynn

Abstract

This paper empirically assesses the sequential relationships among firm strategic factors, FDI activity, and economic performance for a sample of U.S.-based Multinational agribusinesses. The most important findings of this research is a positive direct effect of FDI on performance, the complementary effect between FDI and firm strategic factors (positive and significant interaction terms) on performance, and the positive effect of FDI on performance given some thresholds of firm strategic factors. Specifically, it provides insights about the direct effect of FDI on performance, as well as about the joint effect of firm size and FDI, marketing intensity and FDI, and capital intensity and FDI on performance. These findings provide evidence that FDI activity is an important factor for U.S. agribusiness financial strength.

Suggested Citation

  • Garcia-Fuentes, Pablo A. & Ferreira, Gustavo F.C. & Kennedy, P. Lynn, 2012. "Economic Performance of U.S. Multinational Agribusinesses: Foreign Direct Investment and Firm Strategy," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119763, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea12:119763
    DOI: 10.22004/ag.econ.119763
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    7. Masaaki Kotabe & Srini S Srinivasan & Preet S Aulakh, 2002. "Multinationality and Firm Performance: The Moderating Role of R&D and Marketing Capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(1), pages 79-97, March.
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    Cited by:

    1. Min-Lee Chan & Kannika Duangnate & Cho-Min Lin, 2020. "Performance and Cash Value of Taiwan Multinational Firms’ FDI in ASEAN," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(2), pages 1-2.
    2. Pablo A. Garcia-Fuentes & Gustavo F. C. Ferreira & P. Lynn Kennedy & Felipe Perez, 2017. "Economic Performance of U.S. Multinational Manufacturing Firms: The Linkages between Foreign Direct Investment and Firm Strategy," International Business Research, Canadian Center of Science and Education, vol. 10(1), pages 240-252, January.
    3. Pei-Gi Shu & Sue-Jane Chiang & Man-Yin Chen, 2018. "A New Measure of Control-Cash Flow Deviation: Cases in Taiwan," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 25(4), pages 325-340, December.
    4. Díaz-Fernández, M. Carmen & González- Rodríguez, M. Rosario & Simonetti, Biagio, 2020. "Top management team diversity and high performance: An integrative approach based on upper echelons and complexity theory," European Management Journal, Elsevier, vol. 38(1), pages 157-168.
    5. Christina M. Neubig & Matthias Staudigel & Jutta Roosen, 2024. "Can health trump taste? Implicit and explicit attitudes toward sugar‐reduction claims and their differentiated impact on purchase intention for cereals," Agribusiness, John Wiley & Sons, Ltd., vol. 40(3), pages 614-640, July.

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    Keywords

    Agribusiness; International Relations/Trade; Marketing;
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