A Strategic Interation Perspective on Foreign Direct Investment
The contemporary International Business (IB) literature has ’forgotten’ a key insight of the early foreign direct investment (FDI) literature, namely that FDI often is driven by strategic interaction of multinational corporations (MNCs) in oligopolistic industries. Instead, the IB literature has focused, first on FDI as a way to generate efficiency in cross border transactions, and later on FDI as a way to leverage and build capabilities across borders. In recent decades we have however seen a profound concentration at the global level so that more and more industries can be characterized as global oligopolies. We argue that in this situation there is a pertinent need to ‘rediscover’ the strategic interaction perspective on FDI, but now from a global perspective. Based on early insights of the Industrial Organization FDI tradition as well as on more recent insights from Global Strategic Management, we position the strategic interaction perspective in relation to more conventional perspectives on FDI and develop a typology of generic FDI strategies in global oligopolistic industries.
Academy of International Business. Annual Meeting. Proceedings, 2013
Main Research Area:
Academy of International Business. Annual Meeting. Proceedings