Sinani, E., Dachs, B., Hobdari, B. et al. (1 more author) (2024) R&D investments in knowledge intensive sectors in developing countries and the role of host country political uncertainty. R&D Management. ISSN 0033-6807
Abstract
Multinational enterprises (MNEs) persistently navigate environments characterized by political uncertainty. Yet, it is unclear how such uncertainty affects the location and sectoral spread of MNEs' overseas research and development (R&D) investments. This study delves into the influence of political uncertainty on R&D investments within knowledge‐intensive sectors, particularly in developing nations, thus enhancing our understanding of the contextual variables at play. Using a unique data set of MNE greenfield R&D global investment projects over the period 2003–2019, we show that political uncertainty has a negative effect on R&D capital investments. Additionally, we explore sector and host country location‐specific boundary conditions that moderate this relationship and find support for our hypotheses. Our findings show that MNE R&D investments in science‐based sectors (SBS) and knowledge‐intensive business services (KIBS) sectors in developing countries are less susceptible to political uncertainty compared to developed countries. Our results call for more attention from MNEs' managers and policymakers to political developments in their investing countries.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2024 The Author(s). This is an open access article under the terms of the Creative Commons Attribution License (CC-BY-NC-ND 4.0), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 28 Oct 2024 15:12 |
Last Modified: | 28 Oct 2024 15:12 |
Status: | Published online |
Publisher: | Wiley |
Identification Number: | 10.1111/radm.12728 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:218915 |