Media type: E-Article Title: The Effects of Foreign Direct Investment Colocation: Differences Between Manufacturing and Service Firms Contributor: Zschoche, Miriam Published: Wiley, 2016 Published in: Managerial and Decision Economics, 37 (2016) 7, Seite 447-460 Language: English DOI: 10.1002/mde.2730 ISSN: 0143-6570; 1099-1468 Keywords: Management of Technology and Innovation ; Management Science and Operations Research ; Strategy and Management ; Business and International Management Origination: Footnote: Description: Colocation may result in positive performance effects because of agglomeration benefits or in negative outcomes because of fiercer competition. Using the notions of industrial organization economics, this study offers a comprehensive industry‐specific analysis on the performance effects of international colocation. We predict that bigger firms will benefit more from colocation of foreign firms in a host country. Considering industry and home country peers, the analysis suggests that positive effects dominate for manufacturing firms whereas service firms are negatively affected. However, these effects are mitigated by a firm's size in a location. A large‐scale empirical analysis on firm‐level data supports the hypotheses. Copyright © 2015 John Wiley & Sons, Ltd.