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"NEW METHODS FOR EX POST EVALUATION OF REGIONAL GROUPING SCHEMES IN INTERNATIONAL BUSINESS RESEARCH: A SIMULATED ANNEALING APPROACH*"

Paul M. Vaaler, Ruth V. Aguilera, and Ricardo G. Flores

 

First Author :

Paul M. Vaaler
Business Administration
University of Illinois at Urbana-Champaign, College of Business
1206 S. Sixth Street, 350 Wohlers Hall, MC 706
Champaign, IL 61820
USA

217-333-4504
217-244-7969 (Fax)

pvaaler@uiuc.edu

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Second Author :

Ruth V. Aguilera
Business Administration
University of Illinois at Urbana-Champaign, College of Business
1206 S. Sixth Street, 350 Wohlers Hall, MC 706
Champaign, IL 61820
USA

217-333-7090
217-244-7969 (Fax)

ruth-agu@uiuc.edu

http://www.business.uiuc.edu/faculty/aguilera.html


Third Author :

Ricardo G. Flores
Business Administration
University of Illinois at Urbana-Champaign, College of Business
1206 S. Sixth Street, 350 Wohlers Hall, MC 706
Champaign, IL 61820
USA

217-244-7969 (Fax)

rgflores@uiuc.edu

 
 
Abstract :
 
International business research has long acknowledged the importance of regional factors for foreign direct investment (FDI) by multinational corporations (MNCs). However, significant differences when defining these regions obscure the analysis about how and why regions matter. In response, we develop and empirically document support for a framework to evaluate alternative regional grouping schemes. We demonstrate application of this evaluative framework using data on the global location decisions by US-based MNCs from 1980-2000 and two alternative regional grouping schemes. We conclude with discussion of implications for future academic research related to understanding the impact of country groupings on MNC FDI decisions.
 
 
Keywords :
 
Foreign Direct Investment, Multinationals, Regional Groups, Simulated Annealing
 
 
Footnotes & Acknowledgements :
 
*Please contact Paul M. Vaaler regarding this paper. We thank Arash Mahdian and Reza Etebari for research assistance. We thank Howard Guenther and the UIUC Research Board for financial support. This paper is forthcoming later in 2007 as a book chapter in Research Methodology in Strategy and Management, David J. Ketchen Donald D. Bergh, eds., Elsevier Science Publishers: Kidlington, UK.
 
 
Manuscript Received : 2007
Manuscript Published : April 6, 2007
 
 
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