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Economic Performance of U.S. Multinational Manufacturing Firms: The Linkages between Foreign Direct Investment and Firm Strategy

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

Abstract

This study assesses the sequential relationships between firm strategic factors, foreign direct investment (FDI) activity, and financial performance for a sample of U.S.-based multinational manufacturers. After using hierarchical regressions and path analysis, this study finds an unambiguously positive direct effect of FDI on performance, and a complementary effect between FDI and firm strategy on performance. Specifically, this study 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. Finally, these findings present evidence that FDI activity is an important factor for U.S. manufacturers’ financial strength.

Suggested Citation

  • Garcia-Fuentes, Pablo A. & Ferreira, Gustavo F.C. & Kennedy, P. Lynn & Perez, Felipe, 2013. "Economic Performance of U.S. Multinational Manufacturing Firms: The Linkages between Foreign Direct Investment and Firm Strategy," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142933, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea13:142933
    DOI: 10.22004/ag.econ.142933
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    Cited by:

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    2. Hsiang-Hsi Liu & Teng-Kun Wang & Guan-Ting Liu, 2020. "Workforce Diversity Affecting on the Non-financial Performance of Taiwanese Multinational Enterprises under Different Environmental Factors: CEOs' Viewpoints," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(4), pages 1-7.

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    More about this item

    Keywords

    Agribusiness; Industrial Organization; International Relations/Trade;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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