Economic Performance of U.S. Multinational Manufacturing Firms: The Linkages between Foreign Direct Investment and Firm Strategy

  •  Pablo Garcia-Fuentes    
  •  Gustavo Ferreira    
  •  P. Kennedy    
  •  Felipe Perez    


This research uses an unbalanced date set for a sample of U.S. multinational manufacturing firms to evaluate the effect of the relationships between firm strategic factors (i.e. firm size, marketing intensity and capital intensity) and foreign direct investment (FDI) on firm’s financial performance. Specifically, this study evaluates the direct effect of FDI activity on firm performance, the indirect effect of FDI activity on firm performance, and the moderating effect of FDI activity on the relationships between strategic factors and firm performance. The results suggest that FDI activity plays an important role on the financial strength of U.S. multinational manufacturing firms, and reveal interesting interactions between FDI and some firm strategic factors and their positive effect on financial performance.

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