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WHICH FIRMS EXPAND TO THE MIDDLE EAST: THE EXPERIENCE OF U.S. MULTINATIONALS

โœ Scribed by AVI FIEGENBAUM; J. MYLES SHAVER; BERNARD YEUNG

Publisher
John Wiley and Sons
Year
1997
Tongue
English
Weight
91 KB
Volume
18
Category
Article
ISSN
0143-2095

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โœฆ Synopsis

We examine the characteristics of U.S. multinationals that control operations in the Middle East, a geographic region in which the foreign investment climate has been unfavorable. By comparing U.S. multinationals in the Middle East to a random sample of U.S. multinationals absent from the region, we find that the former have significantly greater R&D intensity and sales than the latter. Dividing multinationals with a presence in the Middle East between those in Israel and those in other countries, we find that the former are more R&D intensive, have a greater proportion of overseas sales, but are smaller in terms of total sales. We discuss the strategic implications of these findings and highlight avenues for future research.

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