History Matters: Colonial-Based Connectivity and Foreign Headquarter Location Choice

Abstract In this study, we argue that European countries’ extensive relationships with former colonies represent a location factor attracts foreign headquarter investments. The strategic role of headquarters as coordinators, opportunity detectors, and global bridgeheads makes the choice activities sensitive to historical-based institutional connections. Drawing on sample 2230 investments in Europe, find stronger combined effect historical connections current economic colonies, higher probability attracting investment projects. We refer characteristic colonial-based connectivity . study findings support hypothesis past colonial context influence FDI decisions preferences. contribute literature by advancing understanding choices, demonstrating importance international business research. emphasize how continues confer advantages upon some countries, including attraction FDI.