THE IMPACT OF FOREIGN DIRECT INVESTMENT ON MULTINATIONAL CORPORATION’S INNOVATION PERFORMANCE: THE CASE OF CONSTRUCTION INDUSTRY IN OECD MEMBER COUNTRIES

• Main Author: Hilal Prasetyo, Daffa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72136
• Institution: Institut Teknologi Bandung

While the past literatures have justified the impact, the rate, and the nature of innovation in construction industry, there are limited information for the normative spectrum on how FDI impacts the firm’s innovation performance in this industry. In doing so, this research is formed to address this informational gap by conducting a firm-level analysis towards 170 construction companies from 14 OECD countries with R&D expenditure as the dependent variable that proxies innovation performance and inward FDI stock in construction industry of the firm’s operating country. From the 4 country- and 2 firm-level control variables in this study, only economic growth that is statistically significant towards the dependent variable, which represents that economic condition of country is still relevant in the dimension of innovation performance. The independent and moderating variable has a low, nevertheless positive and statistically significant magnitude that is explainable by the "backward linkage" features of the construction industry.