We develop hypotheses concerning the impact of multinational firms' international plant networks and host country foreign investor agglomeration on the divestment of manufacturing affiliates, drawing on real option theory and location and agglomeration theory. We test our hypotheses on a...

We examine the impact of buyer-supplier relationships within business group on capital goods trade in the context of foreign direct investment by buyer firms and capital goods producers. A simple model in which cost-reducing relationship specific investments are underlying business group ties...

We examine the impact of buyer–supplier relationships within business groups on capital goods trade by taking into account potential simultaneous effects of business group ties on foreign direct investment. We posit that (1) foreign affiliates of business group firms have a greater propensity...

This paper develops a real options portfolio perspective on foreign affiliate divestments. Affiliates are less likely to be divested in response to adverse environmental change if they represent growth or switch option value to the multinational firm under conditions of macroeconomic...

Although foreign divestment and international relocation by multinational firms carry important economic implications for the industrialization of East Asian countries, there has been little empirical research on these issues. In this paper we analyze the magnitude and pattern of foreign...

We take a flexibility perspective to analyse employment growth in a large sample of Japanese manufacturing affiliates in nine Asian countries during the years leading up to and into the Asian financial crisis (1995–1999). We find that joint ventures are less flexible than wholly owned...