This study attempts to develop a conceptual model which will help us understand a dynamic process of a foreign direct investment, from a subsidiary`s birth to its death. With this model, we will be able to reveal those factors which play different roles in determining the mortality of the foreign direct investment by Korean multinationals. The outcomes of the empirical testings showed that there was a positive relationship between the longevity of a foreign subsidiary and the subsidiary`s initial resource. The parent company`s successive resource transfers to the subsidiary was crucial in explaining the mortality of a foreign subsidiary, as well. Furthermore, interesting is the parent company`s commitment to the project significantly influenced the longevity of its foreign subsidiary. Among the other factors, transferability of the resources also turned out to be a meaningful factor in the mortality process of foreign direct investment.

• Byung Jin Koo