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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Main Authors: Chun-Chieh Chu, Ping-Yu Hsu, Shih-Tong Lu
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2025-07-01
Series:Technological and Economic Development of Economy
Subjects:
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
description 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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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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AT pingyuhsu fuzzymulticriteriadecisionmakingforassessingmultinationalenterprisesoutboundinvestmentdestinationsonthebasisoftaxfactors
AT shihtonglu fuzzymulticriteriadecisionmakingforassessingmultinationalenterprisesoutboundinvestmentdestinationsonthebasisoftaxfactors