Abstract
Foreign direct investment (FDI) plays a critical role in MNEs’ global strategies. Numerous studies have investigated FDI from different perspective such as internalization and transaction cost economies, and modern MNEs theory emphasizes firms’ sustainable competitive advantages, which can be studied through the dynamic capabilities view (DCV). Although existing literature has widely discussed the relationships between DCs and global strategies, little is known so far about the specific types of DCs needed for greenfield FDI and brownfield FDI. We conduct a systematic literature review to address this issue and analyze the impact of FDI on the sustainable competitive advantages of MNEs and sustainable development of host countries.