CORDIS Project
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This project explores management challenges faced by multinational corporations, particularly how distance affects the performance of foreign subsidiaries. It aims to identify solutions through improved managerial connections and the use of technology for better oversight.
Multinationals (MNCs) are key drivers of economic growth, accounting for 33% of global output (OECD 2018).
However, within MNCs, the economic performance of foreign affiliates declines markedly with distance from headquarters (HQ).
This pattern implies the existence of frictions that restrict how much economic growth foreign direct investment (FDI) can generate in host countries.
Understanding the underlying mechanisms has important implications for the economic benefits of FDI and FDI policy. Y…
LUDWIG-MAXIMILIANS-UNIVERSITAET MUENCHEN
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