FDI in Investment Banking
Gulamhussen, Mohamed Azzim
Gulamhussen, Mohamed Azzim
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Publication Type
Journal article
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Supervisor
Publication Year
2012-11
Journal
Thunderbird International Business Review
Book
Publication Volume
54
Publication Issue
6
Publication Begin page
921
Publication End page
934
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Abstract
Abstract The determinants of foreign direct investment (FDI) in investment banking are tested using unique data obtained from 43 semistructured interviews with senior managers of multinational banks. Consistent with internalization theory, the decision to service new customers is positively and significantly related to FDI. In line with internalization theory and the sequential entry framework, the perceived risk of doing business abroad is negatively and significantly related to FDI. Lock‐in is positively and significantly related to FDI. Very few managers consider it important to follow domestic customers, which does not emerge as significantly related to FDI. Qualitative information facilitated the interpretation of multiple empirical estimations. © 2012 Wiley Periodicals, Inc.
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Keywords
3503 Business Systems In Context, 35 Commerce, Management, Tourism and Services, 3507 Strategy, Management and Organisational Behaviour