The purpose of this commentary is to discuss the interpretation of the work by Alam and Bagchi in the larger context of foreign direct investment (FDI) in practice.
This commentary is an essay.
While this paper does a creditable job of inferring relationships based on available data, conclusions regarding the dynamics of FDI decision making in practice should be avoided. This is because all of the data used is inferred from observable precursors and effects of FDI, but does not observe actual decision making in practice.
While noting that conclusions based on inference from observable and countable artifacts of FDI should be handled with caution, there are no recommendations in this essay about what alternative methods other researchers could use to obtain this sort of information.
The cautionary message of this commentary is not unique, but should be repeated frequently, as people all have a tendency to project from the data they have to what they would like to know.
Niederman, F.A. (2011), "A review of Alam and Bagchi's “Supply chain capability as a determinant of FDI”", Multinational Business Review, Vol. 19 No. 3, pp. 250-252. https://doi.org/10.1108/15253831111172667
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