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Evasion and search as FDI motivation

Bibliographic Data

ID15538883
AuthorsBrent Burmester (0000-0001-6802-9967, University of Auckland, corresponding author), Joanna Scott‐Kennel (0000-0002-0836-6811, University of Waikato)
Year2019
Volume15
Issue4
Pages273-295
Publication date2019-08-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueCritical Perspectives on International Business (JOURNAL)
Journal identifiersISSN: 1742-2043 • E-ISSN: 1758-6062
PublisherEmerald Publishing Limited (PUBLISHER • GB)
DOI10.1108/cpoib-07-2018-0064
OpenAlexW2966737813
LanguageEN
References cited44

Purpose The purpose of this paper is to argue for inclusion of evasive foreign direct investment (FDI) into search-based motivation typologies in international business. Design/methodology/approach Critically reassessing academic literature and using anecdotal evidence, the authors augment the theory of FDI motivation with the concept of evasion. Findings Evasive FDI is a firm-level response to denial-of-privilege by a state. Divergence of policy environments between home and host prompts relocation or international expansion of productive assets and often the affectation of ‘foreignness’ by the multinational enterprise (MNE). The role of responsibility evasion via FDI is understood in the research literature, mainly because of an emphasis on search-based motives and a failure to distinguish between escape and evasion. International business research is vulnerable to mis-identification of FDI motive which consequently distorts its strategic and policy implications. Originality/value The argument for inclusion of evasive FDI serves to augment the established, yet asymmetrically focussed typology of search FDI, demonstrating that evasion is conceptually and analytically distinguishable from search. Further, an augmented typology lends accuracy and insight to research into the reconfiguration strategies of MNEs and legitimation of the international business discipline itself, providing researchers with a more comprehensive account of FDI causation and offering new research paths

Argument (complex analysis · Business · Denial · Economics · Evasion (ethics · Foreign direct investment · Inclusion (mineral · International business · International trade · Macroeconomics · Management · Multinational corporation · Originality · Positive economics · Qualitative research · Social science · Sociology · Typology · Value (mathematics · Corporate Finance and Governance · International Arbitration and Investment Law · International Business and FDI · Psychology

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Highly citedNo

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