key: cord-0886142-h44pdrng authors: Paul, Justin; Feliciano-Cestero, aría M. title: Five decades of research on foreign direct investment by MNEs: An overview and research agenda date: 2020-04-11 journal: J Bus Res DOI: 10.1016/j.jbusres.2020.04.017 sha: a2a050faeaaace2185a20deff9b494924547eacc doc_id: 886142 cord_uid: h44pdrng Despite the significance attached to foreign direct investment (FDI) by Multinational enterprises (MNEs), there are is no comprehensive review of the FDI literature. Moreover, those that have been published, focus on subsets of FDI. This review systematically examines the empirical as well as theoretical research on FDI through an analysis of 500 articles published during the last five decades. Theoretical models, methods, context, and contributions to scholarship were reviewed. We strive to highlight the key theories, paradigms, and articles and provide directions for future research. We conclude that FDI has evolved as the most significant area of international business. Foreign direct investment (FDI) by multinational enterprises (MNEs) represents one of the most researched phenomena in international business (Blonigen, 2005; Werner, 2002; Paul & Singh, 2017) . However, most reviews of the FDI literature do typically focus on a specific subset of FDI only (e.g., Buckley & Casson, 2009; Chan, Makino & Isobe, 2006; Meyer, 2003; Blonigen, 2005; Fetscherin, Voss, & Guglier, 2010; Klier, Schwens, Zapkau, & Dikova, 2017; Paul & Benito, 2018) . For instance, Meyer (2004) surveyed the research on FDI spillovers in the context of emerging market economies. Chan et al. (2006) examined the interdependencies between FDI and MNE foreign-market-entry strategies. Blonigen (2005) reviewed past research on host-country-specific determinants of FDI. Buckley and Casson (2009) analyzed the progress of FDI research and internalization theory. Fetscherin et al. (2010) conducted an interdisciplinary literature review on FDI in China. Prior research shows the linkage between different variables such as corporate governance factors, entry and establishment modes, subsidiary performance and location choices (Dikova, 2009; Dikova & Sahib, 2013; Lien, Piesse, Strange, & Filatotchev, 2005; Filatotchev, Strange, Piesse, & Lien, 2007; Ambos, Ambos, & Schlegelmilch, 2006; Dikova & Van Witteloostuijn, 2007; Ambos, Asakawa, & Ambos, 2011; Hertenstein, Sutherland, & Anderson, 2017) . In this context, our goal is to come out with the most comprehensive review of the MNE-FDI literature. We focused on FDI that occurs when MNEs invest in assets in foreign countries and establish some form of a subsidiary to execute market-seeking, strategic asset-seeking and/or efficiency-seeking activities (Dunning, 1993 (Dunning, , 1998 . With coverage of all topics under FDI, our review highlights specific gaps in the extant literature and offer directions for future research. Over the past four decades, MNE-FDI research has evolved from the analysis of investment flows to finer-grained investigations. This review includes topics ranging from the macro-level studies dealing with Outward FDI (OFDI) and Inward FDI (IFDI) to microlevel antecedents (motives for undertaking FDI), characteristics (mode of entry and growth strategies), and performance outcome of foreign subsidiaries of MNEs and international joint ventures (IJVs). It is worth to mention that FDI has been a popular and widely researched subject among both business and economics scholars. The remainder of this review is structured as follows: In the next section, the methodological approach is described. The findings of the analysis are reported in section three. Similarly, we discuss some of the key contributions to the FDI literature focusing on theories and variables. Dominant theories applied were identified -including the eclectic OLI (Ownership, Location, Internalization) paradigm and internalization theory, amongst othersand provide a path to contrast the more established theories with those more recently introduced such as Conservative, Predictable and Pacemaker (CPP) model. Further, we provide a citation analysis of the most impactful articles and authors in the last five decades of research. Next, we identify the most widely used variables in FDI research such as IFDI and OFDI, locations and determinants, economic growth, FDI spillover effects, entry modes, MNE strategy, etc. Afterward, we report dominant research methodologies including statistical approaches. Finally, we provide suggestions for future research regarding theories, content, and methodology. The value of this review lies in its breadth and the exhaustiveness of the literature identified. It complements the focused sub-analysis of the past and therefore represents a valuable base reference tool for future MNE-FDI research. Systematic literature review articles could be of different types, namely -structured review focusing on widely used methods, theories and constructs (Rosado-Serrano, Paul & Dikova, 2018; Canabal & White, 2008 , Paul & Singh, 2017 Kahiya, 2018; Hao et. al, 2019) ; Framework based (Paul & Benito, 2018) , hybrid (Narrative with a framework) for setting future research agenda (Paul, Parthasarathy & Gupta, 2017; Kumar, Paul & Unnithan, 2019) , theory-based review (Gilal et . al, 2018; Paul & Rosad-Serrano, 2019) , meta-analysis (Knoll & Matthes, 2017) , bibliometric review (Randhawa et. al, 2016) , Review aiming for model/framework development (Paul & Mas, 2019; Paul, 2019) . We deployed the process of a structured systematic literature review followed in widely cited review articles (Keupp & Gassmann, 2009; Canabal & White, 2008; Rosad-Serrano et .al, 2018) . Our starting point was a content analysis of prior reviews of the FDI literature on different sub-themes (i.e., Meyer, 2003; Blonigen, 2005; Buckley & Casson, 2009; Chan et al., 2006; Fetscherin et al., 2010; Dikova & Brouthers, 2016; Paul & Singh, 2017 ). Next, we performed a keyword search across selected online databases, including Business Source Premier, JSTOR, ScienceDirect, ProQuest, and Google Scholar for the articles on FDI published during the last five decades. Keywords included Foreign Direct Investment, FDI, Inward FDI, Outward FDI, Multinational Enterprise, MNE, and Foreign Subsidiary. In the first phase, we incorporated empirical papers that used at least one statistical technique based on primary or secondary data. However, based on feedback from experts, we then also included selected high-impact theoretical articles (based on citation counts-minimum 500 citations) to identify key contributions to theory. Furthermore, we checked journal websites independently to ensure that we had captured all published articles -a process that yielded over 600 articles. In the first round, we only include those studies that mentioned the terms "FDI" or "foreign direct investment" in the title, abstract, or keywords list. However, we included some other articles, looking at the relevant universe of articles subjectively, with a holistic approach (following Keupp & Gassman, 2009; Grant-Smith & McDonald, 2017) , by analysing the insights and FDI-related content such as greenfield investment, acquisition, and subsidiary. Next, we reduced the total number of articles by excluding those that were not published in journals included in the Social Sciences Citation Index (SSCI) completing our final sample with 500 articles. Additionally, we established a research agenda for the future, related to content (antecedents, characteristics, and outcomes of FDI) and methodology. Finally, we follow and expand on Keupp and Gassmann's (2009) review method and create a structured catalog (Appendix 1) of all reviewed FDI articles categorized by research topics, FDI characteristics, theories, and variables. Figure 1 illustrates the organizing framework of this review. Overall, we found that MNE-FDI research has not only been steady but that it has accelerated in-depth and breadth over the decades with a noticeable surge in publications in the last 15 years. It is observed that there is room for conceptual renewal within the field. Altogether, 52 articles included in our sample were published between 1980 and 1999, 145 were published between 2000 and 2006, and 303 were published between 2007 and 2020. We suggest that one of the reasons for the surge in FDI research is the evolving nature of MNE internationalization characteristics, improvements in data availability from online sources after 1999, and advances in empirical techniques that lead to finer-grained 6 analyses. The time period was divided with a break in 1999 because several agencies made the online data available for researchers by the late 1990s. This classification of time period helps us to understand the impact of such availability of data on the number of publications. In the following section, we will provide an overview of the key theoretical lenses that dominate MNE-FDI research. The goal is to identify seminal works, new theoretical developments, and interesting research ideas. It was found that the most prevalent theoretical lenses applied in MNE-FDI research have been: (1) Internalization theory, (2) The eclectic OLI paradigm, (3) Product life-cycle (PLC) theory, (4) Institutional Theory, and (5) Resource Based View. Besides, theoretical models or frameworks such as (i) the Linkage, Leverage, Learning (LLL) model, (ii) the Springboard Perspective, and (iii) the CAGE Distance Framework, which were developed during the last decade, have been also used in FDI research. Those recent models deal particularly in the context of the rise of emerging market MNEs (EMNEs) and OFDI from developing countries. We discuss the scope of these theories/models critically in this section by classifying them as "widely-used theories/models" and "new theories/models". Theories, models, and frameworks developed during the last two decades are included under the title "new theories/models". Internalization Theory: Hymer (1976) contributed significantly to the development of this theory. Rugman (1980) provided an integrative framework for the existence of the MNE by integrating internationalization and internalization logic. Internalization (Buckley & Casson, 1976 , 2009 ) explains the motivation for firms to engage in FDI by exploring home-country (country of origin) internal firm-specific advantages (resources and/or capabilities) instead of relying on local factor endowments in individual foreign product markets (Verbeke & Kano, 2016) . Hennart (1982 Hennart ( , 1986 ) developed the internalization model further by extending it along with vertical and horizontal integration of MNE-FDI activities. This has spurred recent studies to draw on internalization theory to explain FDI in the context of regionalization and global value chain disaggregation (Rugman & Verbeke, 2003; Pak & Park, 2004; Rugman, 2010; Verbeke & Kano, 2016) . OLI Paradigm: Dunning's OLI paradigm (e.g., 1988 , 2000 has been the most widely used lens in MNE-FDI research. This paradigm explains the way firms leverage resourcesnamely ownership advantages (O), location advantages (L), and internalization advantages (I) to compete in foreign locations (Dunning, 2001) . The use of the OLI paradigm remains in effect in contemporary FDI research. Over 30 studies in our sample were framed either along all three OLI dimensions or were focused on one of the dimensions in finer-grained approaches. For instance, Delevic & Heim (2017) stated that home market deficiencies are compensated by the host country's location advantages, and Cook, Pandit, Loof, & Johansson (2012) , using a geographical clustering approach for global cities, built on the L-advantages notion and found that more experienced MNEs and those with stronger home-country resource positions are more likely to engage in OFDI. One reason for the prevalence of the OLI paradigm might be that it forms a grounded starting point for developing other theories/frameworks that explain the evolving MNE-FDI phenomenon. Also, the OLI paradigm even if not represent a theory but allows linking international business phenomena with other theories -such as including transaction cost economics and the resource-based view -and also with other fields like economic geography. Despite the relevance of the OLI paradigm and its refinements, Dunning (2006) admitted that the unique context of OFDI from EMNEs could require a revision of some of its premises. Barkema, Chen, George, Luo, & Tsui (2015) pointed towards the difficulty of testing Western theories with Eastern constructs by discussing the properties of equivalence, salience, and infusion, and provided directions for creating new theories and paradigms. In addition, the OLI paradigm might not be suitable for explaining FDI patterns of new-generation firms (e.g., Cannon & Summers, 2014; Ross, 2016) such as Google, Uber, Airbnb, and Bitcoin, which are asset-light and often virtual in their internationalization approach. Product Lifecycle (PLC) Theory: PLC theory represents the focal theoretical lens in several FDI studies, though it has not received the same level of attention as the OLI paradigm in recent years. Vernon (1966) developed the theory based on FDI from U.S.-based MNEs in Western Europe after World War II -specifically, those in the manufacturing sector. Vernon identified four stages of production which he believed formed a continuous cycle: innovation, growth, maturity, and decline. As per this theory, firms undertake exports before thinking about production abroad in the form of FDI. The PLC theory suggests that capitalintensive and technologically sophisticated innovations are typically developed for the domestic market and progress through various stages in which production shifts to other (mainly) developed countries and, finally, to developing countries; such as Contractor, Dangol, Nuruzzaman, & Raghunath (2019, p.2 ) that indicate that "multinational companies are willing to take the risk by investing in a country with a lower institutional quality at one stage of the investment's life-cycle in exchange for a more developed institutions, or easier regulations, at another stage of the life cycle". The scope of PLC theory is not limited to FDI research. It is being applied in other fields as well, such as marketing, where PLC theory was particularly popular in the 1980s and 1990s (Calvet, 1981; Boddewyn, 1983; Kim & Lyn, 1987; Treviño & Daniels, 1995) . Other theories used in FDI research include the institutional theory and the dynamic capabilities theory. According to institutional theory, organizational structures and behavior are to a large extent determined and legitimated by the surrounding environment (e.g., Eisenhardt, 1988; Child, 1997) . Several studies have applied institutional theory while focusing on the choice of appropriate organizational forms such as IJVs versus wholly-owned subsidiaries for foreign market entry (e.g. Li & Meyer, 2009; Roy & Oliver, 2009; Peng, 2003; Yiu & Makino, 2002; Lu, Song, & Shan, 2018) . Meyer (2004) highlighted the relevance of institutional theory when considering and deciding on the suitability of different market-entry modes for EMNEs from emerging countries. Some researchers (Cue & Jiang, 2012; Deng, 2013; Delevic & Heim, 2017) have used institutional theory to explain that EMNEs are subject to institutional constraints such as state interference. RBV has been used in FDI research mainly in the context of OFDI from developing countries. RBV is an approach used to explain how firms achieve competitive advantage while going international. RBV gained popularity in the 1980s and 1990s, after the major works published by Wernerfelt (1984) and Barney (1991) . Ghoshal (1987) was one of the pioneers in applying RBV to international business. The proponents of the RBV argue that firms should look internally to find the sources of competitive advantage instead of searching for it in the external competitive environment. In this approach, resources are classified as either tangible or intangible. One of the key factors is that intangible resources (such as intellectual property rights and brand equity) are the main sources of sustainable competitive advantage (Wernerfelt, 1984; Barney, 1991) . Some researchers have applied RBV in the context of OFDI from EMNEs (Cui & Jiang, 2009; Cook et. al, 2012; Lin, 2016; Gaur, Ma, & Ding, 2018) . In this sub-section, we briefly discussed the recently developed models/frameworks used/ could be used in future research in the context of MNE-FDI Research. In recent years, the LLL model and the Springboard Framework (discussed below) have gained immense popularity because of their utility in explaining the specific determinants, motivations, and processes of outward OFDI from EMNEs. With the LLL framework, Mathews (2002 Mathews ( , 2006 extended the OLI framework to EMNEs with strategic asset-seeking FDI. The LLL framework explains the way EMNEs from peripheral countries in the Asia-Pacific region established themselves successfully in more developed countries. Mathews (2002) suggested that FDI, in pursuit of new capabilities, requires a different perspective than FDI meant to exploit existing capabilities. EMNEs can develop capabilities to the maximum, such that they can globalize (Hobdari, Gammeltoft, Li, & Meyer, 2017) and, also, EMNEs engaged in OFDI from emerging countries, often, enter late to already developed markets and thus principally exhibit catch-up strategies. EMNEs frequently exhibit accelerated or even leapfrogging internationalization patterns. Most researchers have used the LLL model in the context of the internationalization of Asian firms -particularly Chinese firms. For instance, Ge and Ding (2007) applied the LLL model to demonstrate how Chinese firms, such as Galanz Group, developed unique competitive strategies that helped them succeed in foreign markets. On the other hand, Narula (2006) argued that the tenets of the LLL model are interesting, but it proposed modifications, in comparison to the OLI paradigm, seem less than convincing. Luo and Tung's (2007) Springboard Perspective explains why and how EMNEs will systematically and recursively use international expansion as a springboard to acquire critical resources for competition in their home markets with foreign MNEs from developed markets. This is a very useful tool for researchers, particularly those who examine different aspects of OFDI from EMNEs -which still lacks widespread attention. The authors have developed a general theory of springboard MNEs based on amalgamation, ambidexterity, and adaptation advantages that differentiate springboard EMNEs from more established MNEs from developed countries (Luo and Tung, 2018) . Ghemawat's (2001 Ghemawat's ( , 2003 ) CAGE (Cultural, Administrative, Geographic, Economic) Distance Framework, while being applicable to both developed and emerging country contexts, seems especially useful to understanding the internationalization processes of EMNEs. It is surprising that the CAGE framework is widely recognized but not yet widely applied. One reason for this could be that the original article did not offer easy-touse measures. However, some researchers have used the CAGE framework in their studies to analyze distance factors and MNEs' FDI (Goodall & Roberts, 2003; Rugman & Verbeke, 2004; Mudambi, 2008; Malhotra, Sivakumar, & Zhu, 2009; Juasrikul, Sahaym, Sean, & Liu, 2018) . The CAGE distance calculator has introduced a decade ago (Ghemawat, 2007) , and we expect more researchers to use this measure in the future. and Pacemaker (CPP) model, for analysing the internationalization of firms. This model could be used as a classic theoretical lens in research dealing with FDI. Researchers can undertake studies exploring the destination and pattern of FDI classifying the markets as Predictables and Pacemakers. Global competitiveness measurement is also possible using the ratio mentioned in the CPP Model propositions. Industry-wise FDI flows can also be analysed using the CPP model in either single-country context or using cross-country data. To identify the most influential articles on FDI, we conducted a citation analysis. We Table 1 ). The most cited articles were published in the Journal of International Economics, Journal of International Business Studies, and American Economic Review; thus, these articles were not strictly confined to business journals. Empirical articles with more than 2,000 citations (as of January 30, 2020) include Feenstra & Hanson (1997) , Balasubramanyam, Salisu & Sapsford (1996) , Markusen & Venables (1999 ), Dunning (2000 , Helpman (2006) , Cheng & Kwan (2000) . Table 1 here We also examined the citations of the conceptual articles on FDI, of which two recent ones have received the bulk of citations. Mathews's (2006) "Dragon multinationals: New players in 21st-century globalization" have been cited over 2000 times and Luo and Tung's (2007) "International expansion of emerging market enterprises: A springboard perspective" has generated over 2500 citations, as on January 30, 2020. While it was found that most of the extant empirical FDI research has relied conceptually on the work of Dunning (1981 Dunning ( , 2000 Dunning ( & 2006 , Mathews's (2006) , and Luo & Tung's (2007) works have gained attention in the recent years. This could be partly because of the rising research interest in EMNEs. Unsurprisingly, review articles have generated a relatively higher weighted annual average citation scores. For example, Blonigen (2005) gained 1777 citations with a high average weighted citation score of 118 per year. This could, possibly, be because of two reasons: (i) Review articles are frequently used as foundation papers by doctoral students and early career researchers in economics as well as international business areas, and (ii) traditional FDI theories are rooted in economic theories and international economics is regarded as the mother discipline of international business. A key reason for increased interest in EMNE-FDI research might be that while developedcountry MNE-FDI outflows have dominated the global share of FDI activities until recently, the share of FDI from EMNEs has increased sharply over the past 15 years (Luo & Tung, 2007; Demirbag, Tatoglu, & Glaister, 2009; Paul & Benito, 2018) . EMNE-OFDI now accounts for more than one-third of the global FDI outflows (UNCTAD, 2015) . "EMNE-FDI to other developing countries grew by two-thirds from $1.7 trillion in 2009 to $2.9 trillion in 2013" (UNCTAD, 2015, p. 8). Despite its long tradition, FDI research that investigates the relationships between FDI and FDI-receiving-country determinants remains buoyant (e.g., Horst, 1976; Bergsten, Horst & Moran, 1978; Rugman, 1980 Rugman, , 2010 Dunning, 2000; Mudambi & Mudambi, 2002; Anwar & Nguyen, 2011) . Enderwick (2005) found that the benefits derived from MNE activities for FDI-receiving countries depend on quality rather than quantity. Higher-quality FDI includes investments focused on technology or research and development (R&D) that can lead to, for example, knowledge spillovers to other firms in FDI-receiving locations. Alfaro, Chanda, Kalemli, & Sayek (2004) and Durham (2004) found that the realization of these benefits is dependent on the absorptive capacity of local firms in FDI-receiving countries. While the general understanding of host-country determinants (e.g., regulatory, Furthermore, the US, China, and Japan have been most often studied in the context of outward MNE FDI (see Table 2 ). The reasons for this might lie in (a) Table 2 here In this section, we identify the widely investigated constructs and variables, including, IFDI, OFDI, gross domestic product (GDP)/economic growth, exports and FDI, uncertainty and risk, FDI, entry and establishment modes, spillovers, technology, productivity, and firm performance, MNE strategy, and taxes. Table 3 categorizes the most frequently used dependent and independent variables. Table 3 here The most commonly used construct in FDI studies is IFDI, with over 100 appearances. IFDI research has been mainly concerned with various host-country determinants that are associated with attracting firms to specific locations (e.g., Balasubramanyam et al., 1996 Balasubramanyam et al., , 1999 Borensztein et al., 1998 (2011) revealed that after regional integration exists an increase in IFDI into neighboring countries. On the other hand, Jin, García, & Salomon (2018) observed that IFDI affects more innovative firms than straggling ones. Table 4 lists some of the notable recent papers on IFDI, their principal conceptual arguments and findings, and empirical approaches. Table 4 here (Tan & Meyer, 2010; Lin, 2016) . Chari (2013) found a positive relationship between business group affiliation and OFDI overall, in the case of firms from developing countries using Indian data as well as between business group affiliation and OFDI into advanced countries. Ali et al. (2018) results showed that positive or negative changes in outward FDI trigger meaningfully economic growth in China, demonstrating asymmetry between OFDI and economic growth relationship. Table 5 lists recent papers on OFDI. In this context, it is worth noting that Paul and Benito (2018) (2002) found that real GDP has a considerable positive effect and that GDP growth has a minor positive effect on FDI inflows. Hsiao and Shen (2003) identified a reciprocal relationship between FDI and GDP growth. However, by drawing on data from 28 developing countries, they found that FDI has neither consistent long-term nor short-term effects on GDP growth. Findlay (1978) Anwar and Nguyen (2010) found similar results. Table 6 lists recent papers that investigate the relationships between GDP, economic growth, and FDI. - Table 6 here the complementary versus substitute relationship of exports and FDI (e.g., Marin, 1992; Meier, 1984; Bhasin & Paul, 2015) , culminating in the export-led growth thesis. Conversely, some recent studies have analyzed the relationship between FDI and exports further by taking a unified approach which postulates the simultaneous determination of the two MNE activities in developed countries (Markusen & Maskus, 2002) . Alternatively, Aurangzeb & Stengos (2014, p. 141 ) performed an empirical study and concluded: "that countries with higher levels of FDI inflows have higher factor-productivity in the exports sector". Table 7 lists recent papers that integrate and/or contrast research on exports and FDI. ------------------------Insert Table 7 here There is evidence that the high risks associated with some FDI destinations (Gatignon & Anderson, 1988; Miller, 1992) We found 24 studies in our sample focusing on FDI equity-based entry modes such as wholly-owned subsidiaries and equity joint ventures using firm-level data from MNEs (see Table 15 in Appendix). Most of these studies focused on entry modes, entry barriers, and mode switching. Brouthers and Brouthers (2003) found that the investment- The results of the empirical tests linking the relationship between internationalization and MNE performance vary significantly and reflect the diversity of research (for example, Chen & Tan, 2012; Ruigrok, Amann & Wagner, 2007; Prange & Verdier, 2011) . It is worth noting that Bausch and Krist (2007) address the question of if and how internationalization relates to firm performance by integrating findings from 36 studies using meta-analysis. They found empirical support for a significant positive relationship at the aggregate level. Similarly, Chen & Tan (2012) examined the relationship between internationalization and firm performance using the data of 887 publicly listed Chinese firms (and the geographic region to which they internationalize) by classifying the regions as Greater China, Asia and outside Asia. While they found a positive and significant relationship between internationalization (within Greater China) and performance, their results varied between internationalization outside Asia and within Asia. Tax: It was found that 8 studies in our sample investigated taxation in the context of FDI (see Table 16 , Appendix 1). Hajkova, Nicoletti, Vartia, & Yoo (2006) (2003) found that most studies were reporting a negative relationship between taxation and FDI, but that there was a wide range of estimates of the tax elasticity of FDI. Also, Mutti and Grubert (2004) investigated empirical asymmetries associated with the effects of taxation on foreign operations by U.S. MNEs; and Shirodkar & Konara (2017, p. 117) confirmed that "the tax rate in the host country can have a negative effect on subsidiary profit". In this section, an overview of the methodologies used in existing FDI research, including datasets and statistical approaches is provided. Over 80 percent of all studies in our sample used publicly available secondary data. This could very well be due to relatively easy access to secondary data through sources such as the UNCTAD or due to the difficulty of collecting primary data. Table 8 here It was found that the extant FDI literature is diverse but on the other hand still relies on a limited number of theoretical lenses. One of the limitations of this review is the possible exclusion of some articles on FDI as it covers so many concepts such as greenfield investment and acquisition. Nevertheless, an attempt has been made to cover maximum articles. Merely 10 percent of the reviewed articles explicitly sought to extend or develop new theories. Going forward, new theory development should be at the core of future FDI research, to recognize the changes and developments in the phenomenon and taking into account potential, path, process, pattern, process and problems associated with the MNEs and FDI. These changes are driven by developments at the country level, inter-country level and, most importantly, MNE level. This seems particularly necessary, considering that prior empirical FDI research suffered to a significant extent from statistical robustness issues of the main variables. In this section, we offer directions on how to complement the dominant theoretical logics following Barkema et al.'s (2015) example. Although FDI researchers have introduced some new frameworks and constructs, it appears that Dunning's (1980) OLI paradigm still represents the most dominant theoretical starting point for new MNE FDI research. It has been used repeatedly in FDI research in a recycled way. While we do not challenge such an approach, we find that it has limited, to a certain extent, new theory development. Therefore, we call for new and novel theories to use in this area of research. We suggest that with the rise of EMNEs and the emergence of new industries (Cannon & Summers, 2014; Ross, 2016) and new corporate firms like Google, Uber, and Bitcoin, recently developed theories/models such as CPP (Conservative, Predictable & Pacemaker markets and firms), Model for firm internationalization (Paul & Sanchez-Morcillo, 2019) or 7-P framework (Paul & Mas, 2019) , based on Potential, Path, Process, Pace, Pattern, Problems and Performance, can be used as a theoretical lens in future. Although 7-P framework was originally developed for international marketing, its use can be extended in the area of FDI research as almost all the P-variables would serve as platform for future research. New theories could be developed for analyzing the new forms of FDI. Dunning's work and Vernon's PLC theory were developed based on OFDI by MNEs from the developed world and mostly from traditional (and often manufacturing) industries, which creates only limited relevance for the aforementioned emerging phenomena. Further, research on EMNE-OFDI has so far looked at a limited number of determinants and is based on EMNE data from a very limited number of home countries (mainly China). We suggest that for EMNE research, in particular, the LLL (Mathews, 2006) , Springboard Perspective (Luo & Tung, 2007) and ADO framework (2018) Another interesting outcome from this review is that only a limited number of studies (e.g., Andersson, Forsgren, & Holm, 2002) have investigated how entry modes influence the evolution of post-FDI strategy. We suggest that utilizing contingency models from the strategy domain might create an opportunity to more accurately connect country-level and firm-level FDI research with the literature on MNE strategy. Another area of opportunity lies in comparative analyses in the context of FDI from developed countries and developing countries while drawing on existing models, including the CAGE framework (Ghemawat, 2001 (Ghemawat, , 2003 . Previous theory development has been based on the notion that most MNE-FDI is directed toward predictable markets (markets with similar features in terms of cultural, administrative, geographical, and economic distance). This notion is likely a result of firms avoiding dealing with any liability of foreignness issues, problems arising from cognitive biases, and resource constraints. Today's level of economic development of emerging markets and the level of developed market-bound investments by EMNEs (Mathews, 2006; Luo & Tung, 2007; Demirbag et al., 2009) should provide ample opportunities for such research. It is also worth extending the institutional theory and RBV in such studies. For instance, there are opportunities to develop theories and frameworks and extend the available theories to explain the FDI phenomenon of emerging market firms -in particular, Asian firms. This is true especially considering that Asia has emerged as a strategically important region. There are opportunities to develop separate frameworks to analyze the path, process, pace, pattern, problems, and potential of MNE investment concerning the past, present and future all within the context of strategy. For example, there is scope for developing theories that explain the pace of internationalization regarding entry mode switch from exporting to FDI. FDI research has advanced our knowledge of the antecedents, characteristics, and outcomes of entry modes. However, the extant research base is diverse and somewhat fragmented. In this section, we highlight opportunities for future research. Many studies focus on FDI antecedents, including firm-level investment motives and a broad range of home-country and host-country determinants. However, although the number of existing studies gives the impression of being large, the existing literature appears fragmented and often the focus on certain antecedents seems somewhat arbitrary. This provides an opportunity for future research to integrate FDI antecedent research methodologically and conceptually. For the methodological research, we suggest that primary data be collected from the senior managers of MNEs to understand and explain the path, process, and pace of FDI they have undertaken. This includes analysis of motives and determinants of International Joint Ventures (IJV): foreign subsidiaries of MNEs. South Africa 9 Australia 10 Singapore 10 Singapore Table 3 . Dependent variables Count Independent variables Count FDI 93 GDP 107 GDP 79 FDI 75 Inward FDI 49 Export 58 Outward FDI 42 Outward FDI 42 Export 21 Import 36 Import 20 Inflation 19 New industrial policy 11 Gross capital formation 13 Using the gravity model (Hausman-Taylor estimation method), between export and import, and inward and OFDI in Malaysia. Villaverde & Maza (2013) Economic potential, labor conditions, and competitiveness are important for attracting FDI both at an aggregate and sectoral level. Factor analysis to list the main determinants of FDI in Spain. Gao, Liu, & Zou (2013) How within-country differences, of historical factors, affect FDI location decisions and performance Conditional Logit model of Japanese FDI location in China using a sample of 8,646 Japanese FDI in China Delevic & Heim (2017) Reaffirmation of the relevance of institutions for FDI and the substantial improvement of governance indicators do not describe the EU integration process (i.e. Brexit). A correlation-regression equation was used to illustrate the relationship between FDI inflows and its determinants. OFDI and trade linkages are not significant, as OFDI is dominated by the services sector. Using Malaysian data on OFDI, imports, and exports (Hausman-Taylor estimation method). Kang & Jiang (2012) Institutional and economic factors influence the FDI location choices of Chinese MNEs. Panel data of Chinese OFDI to eight Asian countries (13 years). Stoian (2013) Competition policy and institutional reforms play a crucial role in OFDI from emerging countries. Estimating home-country determinants of OFDI from 20 post-Communist, Central and Eastern European countries using Dunning's investment development path (IDP) model. Wei, Zheng, Liu & Lu (2014) Productivity, capability, export experience, entry barriers, and national and sub-national institutions affect OFDI decisions, in comparison to exporting. Multi-dimensional analysis using survey data of Chinese private firms. Ali et al. (2018) The emergence of China as a leading source of OFDI has an important implication in the economic development of this country. Using a nonlinear autoregressive distributive lag model, the asymmetric short-run effects of positive and negative OFDI movements on economic growth in China was captured. VAR modeling based on Granger causality test using data from Nigeria. Aurangzeb & Stengos (2014) The foreign investment variable is statistically significant and, also, have positive indicators confirming FDI's role as an important determinant of economic growth in developing countries. OLS to test the presence of dualistic growth in the countries studied. (2012) Goods and services requiring direct communication with consumers are more likely to be produced in the destination market. Testing predictions using firm-level data from U.S. Bureau of Economic Analysis and the Department of Labor. Medvedev (2012) A preferential trade agreement (PTA) is associated with a true change in net FDI inflows and FDI gains of PTA partners. Sample comprises PTAs in developing countries, signed (late 1990s -early 2000s). Franco (2013) Market-seeing FDI affects export intensity to a greater extent. Testing the effect of U.S. FDI on the export intensity at the sectoral level in 16 OECD countries (1990) (1991) (1992) (1993) (1994) (1995) (1996) (1997) (1998) (1999) (2000) (2001) . Schmeiser (2013) A gravity representation of exports and FDI can be derived where monopolistic competitive firms choose between exporting or servicing through a multinational with FDI. Gravity-type regression. Wei, Shent, Liu & Lu (2014) Export experience affects OFDI decisions. Multi-dimensional analysis using a survey of Chinese private firms. Aurangzeb & Stengos (2014) The higher the levels of FDI, the higher productivity in the export sector will be. Use a smooth coefficient semi-parametric approach to empirically estimate the FDI's effects on economic growth. 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