INBOUND U.S. DIRECT INVESTMENT FROM DEVELOPING COUNTRIES: EMPIRICAL ANALYSIS OF ATTRIBUTES OF TOP PERFORMERS

Successful manufacturing operations in the U.S. will enable multinational enterprises from developing economies (MEDECs) to gain proximity and improved responsiveness to their biggest single target market as well as facilitate their evolution into global corporations. However, international expansion often leads to failure. This study examines the attributes that distinguishes successful MEDECs engaged in U.S. manufacturing from less successful ones. A discriminant analysis classification model reveals that larger firms and those producing patented products have higher levels of performance. Further, minority foreign-owned firms tended to outperform firms that were majority foreign-owned.