Cross-national distance impact on FDI strategic decisions into Portugal: Evidence from Eurozone and Ibero-America

• Autor(a) principal: Duarte, Marcelo Pereira
• Data de Publicação: 2019
• Outros Autores: Carvalho, Fernando Manuel Pereira de Oliveira
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Revista Ibero Americana de Estratégia - RIAE
• DOI: 10.5585/riae.v18i4.10971
• Texto Completo: https://periodicos.uninove.br/riae/article/view/10971
• topic: Strategy; International Business; Cross-national distance; Eurozone; FDI; Ibero-America; Portugal; estrategia

Purpose: The purpose of this paper is to assess if MNEs from the Eurozone and Ibero-America have different sensitivities to cross-national distance when investing in Portugal, by comparison with non-Eurozone and non Ibero-American MNEs.Methodology: Using qualitative variables on a panel data analysis, we are able to assess the differentiated effects of cross-national distance on MNEs from members and non-members of both groups of countries.Findings: Results suggest that sensitivities are indeed differentiated, with a notable exception of administrative distance which remains with a negative effect throughout all groups.Originality: This research contributes to international business/management literature in the extent that it explores the relationship between cross-national distance and one of the most important international strategic decisions, FDI. It also addresses Portugal’s monetary integration in the Eurozone and the historic and cultural ties with Ibero-American countries.