scholarly journals Determinants of FDI establishment mode choice of Polish firms. The OLI paradigm perspective

2016 ◽  
Vol 2 (37) ◽  
pp. 67-92
Author(s):  
Marian Gorynia ◽  
Jan Nowak ◽  
Piotr Trąpczyński ◽  
Radosław Wolniak
Keyword(s):  
Mode Choice ◽  
Establishment Mode ◽  
Oli Paradigm ◽  
Determinants Of Fdi

scholarly journals Family involvement and firms’ establishment mode choice in foreign markets

2016 ◽  
Vol 47 (8) ◽  
pp. 929-950 ◽  
Author(s):  
Andrea Boellis ◽  
Sergio Mariotti ◽  
Alessandro Minichilli ◽  
Lucia Piscitello
Keyword(s):  
Family Involvement ◽  
Mode Choice ◽  
Foreign Markets ◽  
Establishment Mode

scholarly journals Greenfield investments or acquisitions? The influence of distance on emerging-market multinationals

2019 ◽  
Vol 57 (5) ◽  
pp. 1223-1236 ◽  
Author(s):  
Laura Rienda ◽  
Enrique Claver-Cortes ◽  
Diego Quer ◽  
Rosario Andreu
Keyword(s):  
Emerging Market ◽  
Mode Choice ◽  
Behavioral Pattern ◽  
Foreign Direct Investments ◽  
Developed Country ◽  
Content Type ◽  
Emerging Market Multinationals ◽  
Greenfield Investments ◽  
The Relationship ◽  
Establishment Mode

Purpose In recent years, emerging-market multinationals (EMMs) are receiving significant attention in the international business literature. They represent a challenge for the conventional wisdom, mainly derived from the behavior of developed-country multinationals (MNEs). The purpose of this paper is to analyze how different cross-national distances, namely cultural, administrative, geographic and economic, may affect establishment mode choice by Indian MNEs. Design/methodology/approach Data are collected from 328 outward foreign direct investments carried out by Indian MNEs in 73 countries from 1991 to 2014. A binomial logistic regression analysis is used to test the hypotheses. Findings The results show that cultural and administrative distances negatively affect the choice of an acquisition. Moreover, firm size, acquisition experience, host country experience, industry, belonging to the G20 alliance and being a state-owned enterprise also influence establishment mode choice. Originality/value This is one of the first studies that investigate the relationship between distances and establishment mode choice by Indian MNEs. The findings suggest that they follow a different behavioral pattern among EMMs, since their internationalization decisions are closer to those of developed-country MNEs.

scholarly journals Institutional distance, establishment mode choice and international experience: the case of Indian MNCs

2018 ◽  
Vol 12 (1) ◽  
pp. 60-80 ◽  
Author(s):  
Laura Rienda ◽  
Enrique Claver ◽  
Diego Quer
Keyword(s):  
Multinational Corporations ◽  
Cultural Distance ◽  
Emerging Market ◽  
Mode Choice ◽  
Political Risk ◽  
International Experience ◽  
Institutional Distance ◽  
Foreign Direct Investments ◽  
Content Type ◽  
Establishment Mode

Purpose Focusing on the growing importance of Indian multinational corporations in the past decades, this paper aims to understand how establishment mode decisions in a foreign market can differ depending on a series of factors. Specifically, the authors examine how institutional distance, including cultural distance and political risk, could affect these decisions, and how international acquisition experience could moderate this relationship. Design/methodology/approach The authors test their hypotheses using data from 114 outward foreign direct investments between 2000 and 2010. Findings The findings suggest that experience in international acquisitions increases the likelihood of subsequent acquisitions in high-risk and culturally distant countries. Originality/value By considering that the country of origin also matters, some differences among emerging-market multinational corporations (MNCs) may arise. Besides, since empirical research focusing on emerging-market MNCs is scarce, more empirical studies are needed to analyze the influence of cultural distance and political risk on some decisions. In the case of India, there are also additional motivations for analyzing those institutional factors. First, since this is a country with significant linkages to Western countries, it is interesting to know if the influence of cultural distance is similar or not. Second, there is a lack of empirical evidence on the relationship between political risk and establishment mode choice in the case of Indian MNCs. To fill this gap, the first aim of this paper is to analyze how cultural distance and political risk affect the establishment mode choice of Indian MNCs. Moreover, recognizing international experience to be an important factor in explaining international expansion, we focus on international experience interactions with sources of uncertainty inherent in the host market.

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