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ICT Development and the Regional vs. Global Strategies of MNEs

Linghui Tang (Associate Professor of International Business in the Department of Finance and International Business at the College of New Jersey)
Len J. Trevino (Holds the Gerald N. Gaston Eminent Scholar Chair in International Business in the Joseph A. Butt College of Business at Loyola University New Orleans)

Multinational Business Review

ISSN: 1525-383X

Article publication date: 11 November 2010

Abstract

This paper investigates the impact of information and communication technology (ICT) on the spatial dispersion of FDI. Using a gravity model, we find that geographic distance remains negative for bilateral FDI activities and ICT advances in source countries have no statistically significant impact on outward FDI. However, ICT advances in host countries have a positive moderating effect on the relationship between distance and FDI. In other words, although ICT does not change the regional orientation of MNEs, it has increased the ability for a country to attract FDI by increasing its attractiveness as an FDI destination in a region.

Keywords

Citation

Tang, L. and Trevino, L.J. (2010), "ICT Development and the Regional vs. Global Strategies of MNEs", Multinational Business Review, Vol. 18 No. 4, pp. 51-70. https://doi.org/10.1108/1525383X201000019

Publisher

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Emerald Group Publishing Limited

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