A HYBRID MCDM METHOD TO IDENTIFY CRITICAL FACTORS OF FOREIGN DIRECT INVESTMENT

Authors

  • Tien-Hsiang Chang Department of Intelligence Commerce, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan, R.O.C.
  • Wen-Chin Yeh Graduate Institute of Marketing and Logistics Management, Ling Tung University, Taichung, Taiwan, R.O.C.
  • Hsin-Pin Fu Department of Marketing and Distribution Management, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan, R.O.C.
  • Ying-Hua Teng Department of Marketing and Distribution Management, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan, R.O.C.

DOI:

https://doi.org/10.23055/ijietap.2023.30.6.8509

Keywords:

critical attributes

Abstract

The purpose of this study was to understand the varied importance of critical factors (CFs) that affect foreign direct investment (FDI) and optimize the allocation of limited resources to the CFs to increase chances for international business success. We used eclectic theory as a framework. The fuzzy analytic hierarchy process (FAHP) and the concept of the Vlse Kriterijumska Optimizacija Kompromisno Resenje (VIKOR) acceptable advantage were used to obtain the weights of the CFs and to identify the CFs objectively. Sensitivity analysis was performed to optimize the CFs. With the derivation of the CF weights, Taiwanese catering firms (i.e., the focal sample) can improve the allocation of their resources to the CFs to reduce the risk of FDI failure. Management implications, factor path analysis, and study contributions are also discussed.

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Published

2023-12-24

How to Cite

Chang, T.-H., Yeh, W.-C., Fu, H.-P., & Teng, Y.-H. (2023). A HYBRID MCDM METHOD TO IDENTIFY CRITICAL FACTORS OF FOREIGN DIRECT INVESTMENT. International Journal of Industrial Engineering: Theory, Applications and Practice, 30(6). https://doi.org/10.23055/ijietap.2023.30.6.8509

Issue

Vol. 30 No. 6 (2023)

Section

Work Measurement, Human Factors and Ergonomics

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