Abstract
Purpose: The purpose of this paper is to assess if MNEs from the Eurozone and Ibero-America have different sensitivities to cross-national distance when investing in Portugal, by comparison with non-Eurozone and non Ibero-American MNEs.Methodology: Using qualitative variables on a panel data analysis, we are able to assess the differentiated effects of cross-national distance on MNEs from members and non-members of both groups of countries.Findings: Results suggest that sensitivities are indeed differentiated, with a notable exception of administrative distance which remains with a negative effect throughout all groups.Originality: This research contributes to international business/management literature in the extent that it explores the relationship between cross-national distance and one of the most important international strategic decisions, FDI. It also addresses Portugal’s monetary integration in the Eurozone and the historic and cultural ties with Ibero-American countries.
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