Article
Supply chain capability as a determinant of FDI
The choice of an investment location by a multinational enterprise (MNE) is determined not only by firm-specific variables that define the motive of foreign direct investment (FDI), but is also determined by variables that define locational aspects. The purpose of this paper is to report on the study of the constituents of production and logistics environment of a host country and its effect on FDI decisions of MNEs. The concept is introduced of supply chain capability (SCC) of countries, a long-run variable based on the production and logistics environment, as shaping the FDI of MNEs.
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