Regional Logistics Capability and Foreign Direct Investment Location Choice of Multinational Corporations

Multinational corporations (MNCs) are encountering real challenges in a post-COVID-19 world to find suitable locations for channeling their investments. However, how can two locations be compared? A new index for the logistics capability of countries or within-country regions is presented as a tool to assist managers in location-related decision-making. A survey among MNC managers in Asia reveals that MNCs investing in locations with higher regional logistics capability tend to perform better, suggesting that logistics capability is vital in foreign direct investment (FDI) location choices.