Antecedents And Consequences Of Foreign Direct Investment And International Procurement Through A General Strategic Management Lens

Abstract

Since multiple perspectives and dynamic national environments can be applied to explain how value is created in an international context, multinational firms need analytical guidelines when facing procurement and production decisions concerning various worldwide locations for value-added chain activities such as marketing, production, distribution, and after sales service. The ultimate aim of this research was to abstract and empirically test a realistic but fairly simple localization framework to facilitate the design of an information system that supports a cost-benefit analysis based on legal requirements, value chain activities, and product costs. A balance was sought between inclusiveness and minimalism in the development of a normative model for implementation of dynamic strategic planning and control programs. The data show the participants’ behavior is significantly influenced by all three elements supporting the value-added localization model and validating the holistic approach put forth by Lecraw & Morrison (1991).