Establishment Mode Choices of Emerging Multinationals: Evidence from Poland

Abstract

This study identifies and investigates the determinants of FDI modes in the context of outward foreign direct investment (OFDI) undertaken by companies from Poland. The analysis covers the interfaces between selected host-country variables and firm resources with FDI modes. A conceptual framework for FDI mode determinants is presented as a basis for the ensuing empirical analysis. The research hypotheses based on previous research are subjected to statistical verification using survey data of 60 Polish foreign investors collected throughout 2013. The main findings show that an increase of previous host-country exposure, as well as host country market attractiveness, favour the choice of green-field mode, while the lack of such exposure and the related knowledge favours acquisitions. Moreover the said green-field operations tend to be located in politically stable markets. The possession of intangible resources turns out to be irrelevant for FDI mode choice.

Keywords

• foreign direct investment
• FDI modes
• emerging multinationals
• Central and Eastern Europe