{"title":"Robotics and labor costs: Not a duel, but a dual advantage","authors":"Pavan Kulkarni , Snehal Awate , Amit J. Chauradia","doi":"10.1016/j.intman.2026.101347","DOIUrl":null,"url":null,"abstract":"<div><div>We examine the joint effect of robotics and labor cost on MNE's FDI location decision. Drawing on nine years of data (2008–2016) on industrial robot purchases and greenfield FDI, we find that a country's wage advantage continues to remain relevant, such that MNEs select lower-wage countries with higher robot stocks as their FDI destinations. Our finding of the dual benefits of robotics and low wages, accrued to developing countries, offers a fresh perspective on FDI location strategies in the age of automation. We contribute to the Industry 4.0 dynamic by examining the effect of a country's robotic deployments on MNE's location strategy.</div></div>","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"32 2","pages":"Article 101347"},"PeriodicalIF":4.2000,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Management","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1075425326000219","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"2026/2/21 0:00:00","PubModel":"Epub","JCR":"Q1","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
We examine the joint effect of robotics and labor cost on MNE's FDI location decision. Drawing on nine years of data (2008–2016) on industrial robot purchases and greenfield FDI, we find that a country's wage advantage continues to remain relevant, such that MNEs select lower-wage countries with higher robot stocks as their FDI destinations. Our finding of the dual benefits of robotics and low wages, accrued to developing countries, offers a fresh perspective on FDI location strategies in the age of automation. We contribute to the Industry 4.0 dynamic by examining the effect of a country's robotic deployments on MNE's location strategy.
期刊介绍:
The Journal of International Management is devoted to advancing an understanding of issues in the management of global enterprises, global management theory, and practice; and providing theoretical and managerial implications useful for the further development of research. It is designed to serve an audience of academic researchers and educators, as well as business professionals, by publishing both theoretical and empirical research relating to international management and strategy issues. JIM publishes theoretical and empirical research addressing international business strategy, comparative and cross-cultural management, risk management, organizational behavior, and human resource management, among others.