Re-interpreting Ownership Advantages and Re-categorizing Investment Motivations of Multinational Corporations: From the Perspective of Imbalance Theory
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As opposed to the conventional type of asset exploitation-based foreign direct investment (FDI), this paper illustrates why firms invest abroad based on Moon and Roehl’s (2001) imbalance theory. This paper further extends and emphasizes how the imbalance theory can be extended and utilized in enhancing competitiveness of firms. This is to shift our focus on sources of competitiveness from monopolistic asset to complementing capability of firms’ disadvantages. The complementary capability can be categorized into four, which are agility, benchmarking, convergence and dedication. Based on both exploiting advantages and complementing disadvantages perspectives, this paper re-categorizes FDI motivations.
Abstract
As opposed to the conventional type of asset exploitation-based foreign direct investment (FDI), this paper illustrates why firms invest abroad based on Moon and Roehl’s (2001) imbalance theory. This paper further extends and emphasizes how the imbalance theory can be extended and utilized in enhancing competitiveness of firms. This is to shift our focus on sources of competitiveness from monopolistic asset to complementing capability of firms’ disadvantages. The complementary capability can be categorized into four, which are agility, benchmarking, convergence and dedication. Based on both exploiting advantages and complementing disadvantages perspectives, this paper re-categorizes FDI motivations.
참고문헌 (40)
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