Exploitation, Exploration, and How Learning Affects Strategic Intent in Multinational Enterprises' Foreign Direct Investment Decisions: A Commentary Essay


Management and Entrepreneurship

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Research on foreign direct investment is a rich vein of inquiry in international business and management literature. Scholars explore various aspects of FDI including the reasons for location selection. Chen and Yeh''s research is in that tradition. Under the title of “Re-examining location antecedents and pace of foreign direct investment: Evidence from Taiwanese investment in China”, they explore Taiwanese investment in China and re-affirmed previous findings of other scholars that organizational learning alters the trajectory of investment. The essay here comments on their contributions, impact on practice and policy, and limitations. Finally, the essay discusses implications for future research and recommends relevant readings on the topic.