Strategic Motivations Of Australian And New Zealand Manufacturing Foreign Direct Investments In International Markets
We empirically investigate how different location-specific variables and strategic motives influenced Australian and New Zealand (ANZ) firms' ownership strategy choices in foreign markets between 1998 and 2008. This study is the first to analyse how strategic motives and ownership-specific,...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Asian Academy of Management (AAM)
2011
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| Subjects: | |
| Online Access: | http://eprints.usm.my/36567/1/AAMJ_16.2.6.pdf http://eprints.usm.my/36567/ http://web.usm.my/aamj/16.2.2011/AAMJ_16.2.6.pdf |
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| Summary: | We empirically investigate how different location-specific variables and strategic motives
influenced Australian and New Zealand (ANZ) firms' ownership strategy choices in
foreign markets between 1998 and 2008. This study is the first to analyse how strategic
motives and ownership-specific, location-specific, and internalisation variables have
influenced the ownership structure choices of ANZ firms in foreign markets. The results
indicate that large market potential and low levels of cultural distance increase the
probability that ANZ manufacturing firms will undertake wholly owned subsidiary (WOS)
ownership structures and market-seeking (MS) and/or efficiency-seeking (ES) foreign
direct investment (FDI). Low exchange rate fluctuation increases the probability that
ANZ manufacturing firms will undertake WOS-type risk reduction-seeking (RRS) FDI. |
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