Fuzzy multicriteria decision-making for assessing multinational enterprises’ outbound investment destinations on the basis of tax factors
Taxes are a crucial consideration in a multinational enterprise’s (MNE)’s choice of overseas market to invest in. Taxes are affected by a variety of factors, and these factors are prioritized vis-à-vis each other in such investment decision-making. The present study thus developed a framework for e...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2025-07-01
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| Series: | Technological and Economic Development of Economy |
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| Online Access: | https://transport.vilniustech.lt/index.php/TEDE/article/view/22834 |
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| author | Chun-Chieh Chu Ping-Yu Hsu Shih-Tong Lu |
| author_facet | Chun-Chieh Chu Ping-Yu Hsu Shih-Tong Lu |
| author_sort | Chun-Chieh Chu |
| collection | DOAJ |
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Taxes are a crucial consideration in a multinational enterprise’s (MNE)’s choice of overseas market to invest in. Taxes are affected by a variety of factors, and these factors are prioritized vis-à-vis each other in such investment decision-making. The present study thus developed a framework for evaluating the relative importance of tax factors affecting the outbound investment decisions of MNEs, using insights from the literature and expert interviews to establish evaluation criteria. To address the complexities of multicriteria decision-making, this study employed fuzzy linguistic preference relations. The study subsequently applied the fuzzy Vlse Kriterijumska Optimizacija I Kompromisno Resenje (VIKOR) approach to rank the alternatives proposed by the expert decision-making group. Finally, this study applied this methodology to a case study of candidate overseas markets (Vietnam, Malaysia, and Indonesia) for Taiwanese firms to invest in, providing a practical demonstration of the model. In conclusion, the present study’s comparative analysis of the application of fuzzy VIKOR to foreign direct investment by Taiwanese MNEs offers a systematic approach for both academic and industry practitioners involved in strategic host country selection for multinational investments.
First published online 14 July 2025
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| format | Article |
| id | doaj-art-42d553ffa5f84ec99b10622e90055bf4 |
| institution | OA Journals |
| issn | 2029-4913 2029-4921 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Technological and Economic Development of Economy |
| spelling | doaj-art-42d553ffa5f84ec99b10622e90055bf42025-08-20T02:37:14ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212025-07-0110.3846/tede.2025.22834Fuzzy multicriteria decision-making for assessing multinational enterprises’ outbound investment destinations on the basis of tax factorsChun-Chieh Chu0Ping-Yu Hsu1Shih-Tong Lu2Department of Business Administration, National Central University, Taoyuan City, TaiwanDepartment of Business Administration, National Central University, Taoyuan City, TaiwanDepartment of International Logistics and Transportation Management, Kainan University, Taoyuan City, Taiwan Taxes are a crucial consideration in a multinational enterprise’s (MNE)’s choice of overseas market to invest in. Taxes are affected by a variety of factors, and these factors are prioritized vis-à-vis each other in such investment decision-making. The present study thus developed a framework for evaluating the relative importance of tax factors affecting the outbound investment decisions of MNEs, using insights from the literature and expert interviews to establish evaluation criteria. To address the complexities of multicriteria decision-making, this study employed fuzzy linguistic preference relations. The study subsequently applied the fuzzy Vlse Kriterijumska Optimizacija I Kompromisno Resenje (VIKOR) approach to rank the alternatives proposed by the expert decision-making group. Finally, this study applied this methodology to a case study of candidate overseas markets (Vietnam, Malaysia, and Indonesia) for Taiwanese firms to invest in, providing a practical demonstration of the model. In conclusion, the present study’s comparative analysis of the application of fuzzy VIKOR to foreign direct investment by Taiwanese MNEs offers a systematic approach for both academic and industry practitioners involved in strategic host country selection for multinational investments. First published online 14 July 2025 https://transport.vilniustech.lt/index.php/TEDE/article/view/22834tax factorsmultinational enterpriseoutbound investmentmulticriteria decision-makingfuzzy VIKORfuzzy linguistic preference |
| spellingShingle | Chun-Chieh Chu Ping-Yu Hsu Shih-Tong Lu Fuzzy multicriteria decision-making for assessing multinational enterprises’ outbound investment destinations on the basis of tax factors Technological and Economic Development of Economy tax factors multinational enterprise outbound investment multicriteria decision-making fuzzy VIKOR fuzzy linguistic preference |
| title | Fuzzy multicriteria decision-making for assessing multinational enterprises’ outbound investment destinations on the basis of tax factors |
| title_full | Fuzzy multicriteria decision-making for assessing multinational enterprises’ outbound investment destinations on the basis of tax factors |
| title_fullStr | Fuzzy multicriteria decision-making for assessing multinational enterprises’ outbound investment destinations on the basis of tax factors |
| title_full_unstemmed | Fuzzy multicriteria decision-making for assessing multinational enterprises’ outbound investment destinations on the basis of tax factors |
| title_short | Fuzzy multicriteria decision-making for assessing multinational enterprises’ outbound investment destinations on the basis of tax factors |
| title_sort | fuzzy multicriteria decision making for assessing multinational enterprises outbound investment destinations on the basis of tax factors |
| topic | tax factors multinational enterprise outbound investment multicriteria decision-making fuzzy VIKOR fuzzy linguistic preference |
| url | https://transport.vilniustech.lt/index.php/TEDE/article/view/22834 |
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