Determinants of Foreign Direct Investment Performance - a Critical Literature Review

• Autorzy: Piotr Trąpczyński
• Języki publikacji: EN

Abstrakty

EN

Foreign direct investment (FDI), its motives, modes and location choice constitute key subjects in theory and research in international business, due to their long-term consequences for firm competitiveness. The determinants of results achieved in foreign markets can therefore be described as a fundamental research area, which specifically includes studies on FDI performance. In spite of its long tradition and methodical advancement, extant research show numerous inconsistencies and ambiguous findings. In both international and Polish literature, no complex summary of extant knowledge on FDI performance determinants can be found, which would allow for the consolidation and evaluation of earlier findings. The aim of this paper is to present the findings of a structured review of 95 studies on performance of foreign subsidiaries. Within extant studies, four main research streams were identified, focusing on FDI mode choice, resource determinants on a firm and subsidiary level, host-country characteristics and corporate strategy. Previous research has not adequately considered the role of expansion motives for evaluating FDI performance. Future studies should also to a greater extent account for a differentiated role of firm resources, particularly various types of international experience, as applied in host countries at different levels of economic and institutional development. Moreover, a more holistic FDI performance analysis requires a simultaneous consideration of financial and non-financial dimensions of a foreign subsidiary's competitive position. Based on the outcomes of the present review, areas for further studies have been proposed, especially as regards the context of outward FDI, increasingly undertaken by Polish companies, and its specific character. (original abstract)

Słowa kluczowe

EN

Direct investments; Foreign investment; Enterprise resources; Corporation strategies

PL

Inwestycje bezpośrednie; Inwestycje zagraniczne; Zasoby przedsiębiorstwa; Strategia przedsiębiorstwa

• Czasopismo: Oeconomia Copernicana
• Rocznik: 2013
• Tom: 4
• Numer: nr 2
• Strony: 117--132

Twórcy

autor

Piotr Trąpczyński

• Poznań University of Economics, Poland

Bibliografia

• Anderson A., Gatignon H. (1986), Modes of Foreign Entry: A Transaction Cost Analysis and Propositions, "Journal of International Business Studies", Vol. 17, No. 3.
• Anand J., Delios A. (1997), Location Specificity and the Transferability of Downstream Assets to Foreign, "Journal of International Business Studies", Vol. 28, No. 3.
• Beamish P.W., Lee C. (2003), The Characteristics and Performance of Affiliates of Small and Medium-Size Multinational Enterprises in an Emerging Market, "Journal of International Entrepreneurship", Vol. 1.
• Brouthers K.D. (2002), Institutional, Cultural and Transaction Cost Influences on Entry Mode Choice and Performance, "Journal of International Business Studies", Vol. 33, No. 2.
• Brouthers L.E., Brouthers K.D., Werner, S. (2000), Perceived Environmental Uncertainty, Entry Mode Choice and Satisfaction with EC-MNC Performance, "British Journal of Management", Vol. 11.
• Brouthers K.D., Brouthers L.E., Werner S. (2003), Transaction cost-enhanced entry mode choices and firm performance, "Strategic Management Journal", Vol. 24.
• Brouthers K.D., Brouthers L.E., Werner S. (2008), Resource-Based Advantages in an International Context?, "Journal of Management", No. 34.
• Carlsson J., Nordegren A., Sjoholm (2005), F. International experience and the performance of Scandinavian firms in China, "International Business Review", Vol. 14.
• Chan P.S. (1995), International joint ventures vs. wholly owned subsidiaries, "Multinational Business Review", Vol. 3, No, 1.
• Chan C., Isobe T., Makino S. (2008), Which country matters? Institutional development and foreign affiliate performance, "Strategic Management Journal", Vol., 29.
• Chan C., Makino S., Isobe T. (2010), Does subnational region matter? Foreign affiliate performance in the United States and China, "Strategic Management Journal", Vol. 21.
• Chiao Y.-C., Yu C.-M. J., Li P.-Y., Chen Y.-C. (2008), Subsidiary size, internationalization, product diversification, and performance in an emerging market, "International Marketing Review", Vol. 25 No. 6.
• Child J., Chung L., Davies H. (2003), The Performance of Cross-Border Units in China: A Test of Natural Selection, Strategic Choice and Contingency Theories,, "Journal of International Business Studies", Vol. 34, No. 3.
• Christmann P., Day D., Yip G.S. (1999), The relative influence of country conditions, industry structure, and business strategy on multinational corporation subsidiaryperformance, "Journal of International Management", Vol. 5.
• Chung C.C., Beamish P.W. (2005), The Impact of Institutional Reforms on Characteristics and Survival of Foreign Subsidiaries in Emerging Economies, "Journal of Management Studies", Vol. 42, No. 1.
• Cuervo-Cazurra A., Genc M. (2008), Transforming disadvantages into advantages: developing-country MNEs in the least developed countries, "Journal of International Business Studies", Vol. 39.
• Cui A., Griffith D., Cavusgil D. (2005), The Influence of Competitive Intensity and Market Dynamism on Knowledge Management Capabilities of Multinational Corporation Subsidiaries, "Journal of International Marketing", Vol. 13, No. 3.
• Delios A. (2011), Experience and a firm's performance in foreign markets: A commentary essay, "Journal of Business Research", No. 64.
• Delios A., Makino S. (2003), Timing of Entry and the Foreign Subsidiary Performance of Japanese Firms, "Journal of International Marketing", Vol. 11, No. 3.
• Del Sol P., Kogan J. (2007), Regional competitive advantage based on pioneering economic reforms: the case of Chilean FDI, "Journal of International Business Studies", Vol. 38.
• Demirbag M., Tatoglu E., Glaister K.W. (2007), Factors influencing perceptions of performance . The case of western FDI in an emerging market, "International Business Review", Vol. 16.
• Dikova D. (2009), Performance of foreign subsidiaries: Does psychic distance matter?, "International Business Review", Vol. 18.
• Dow D., Larimo J. (2011) Psychic Distance and Foreign Subsidiary Survival: A Paradox or a Contingent Relationship?, European International Business Academy, Bucharest.
• Dunning J.H. (1998), Location and the Multinational Enterprise: A Neglected Factor?, "Journal of International Business Studies", Vol. 29, No. 1.
• Dunning J.H., Lundan S.M. (2008), Multinational Enterprises and the Global Economy, Second Editon, Edward Elgar, Cheltenham, UK.
• Erramilli M.K., Agarwal S., Kim S.-S. (1997), Are firm-specific advantages location-specific too?, "Journal of International Business Studies", Vol. 28, No. 4.
• Fang Y., Jiang G.-J., Makino S., Beamish P.W. (2010), Multinational Firm Knowledge, Use of Expatriates, and Foreign Subsidiary Performance, "Journal of Management Studies", Vol. 47, No. 1.
• Fang Y., Wade M., Delios A., Beamish P.W. (2007), International diversification, subsidiary performance, and the mobility of knowledge resources, "Strategic Management Journal", in press, DOI: 10.1002/smj.619.
• Fang Y., Wade M., Delios A., Beamish P.W. (2012), An exploration of multinational enterprise knowledge resources and foreign subsidiary performance. "Journal of World Business", http://dx.doi.org/10.1016/jjwb.2012.06.004.
• Gao G., Pan Y. (2007), Performance of multinational firms' subsidiaries: A learning perspective, American Marketing Association, Winter 2007.
• Gao G., Pan Y., Lu J., Tao Z., (2008), Performance of Multinational Firms' Subsidiaries: Influences of Cumulative Experience, "Management International Review", Vol. 48, No. 6.
• Gaur A.S., Lu J.W. (2007), Ownership Strategies and Survival of Foreign Subsidiaries: Impacts of Institutional Distance and Experience, "Journal of Management", Vol. 33 No. 1.
• Georgopoulos A., Preusse H.G. (2009), Cross-border acquisitions vs. Greenfield investment: A comparative performance analysis in Greece, "International Business Review", Vol. 18.
• Ghahroudi M. (2011), Ownership Advantages and Firm Factors Influencing Performance of Foreign Affiliates in Japan, "International Journal of Business and Management", Vol. 6, No. 11.
• Glaum M., Oesterle M.-J. (2007), 40 Years of Research on Internationalization and Firm Performance: More Questions than Answers?, Management International Review, Vol. 47, No. 3.
• Gorynia M. (red.) (2002), Luka konkurencyjna na poziomie przedsiębiorstwa a przystąpienie Polski do Unii Europejskiej. Implikacje dla strategii firm i polityki gospodarczej, Wydawnictwo AE w Poznaniu, Poznań.
• Gorynia M., Nowak J., Trąpczyński P., Wolniak R. (2012), Foreign Direct Investment of Polish Firms: A Case Study Approach, [w:] E. Kaynak, T. Harcar (eds.), Global Competitiveness in a Time of Economic Uncertainty and Social Change: Current Issues and Future Expectations, The International Management Development Association, IMDA Press, Hummelstown.
• Gorynia M., Nowak J., Wolniak R. (2005), Motives and Modes of FDI, Firm Characteristic and Performance, "Journal of Transitional Management", No. 3.
• Gugler K., Kalkbrenner E., Mueller D.C., Peev E. (2009), Institutional Determinants of Domestic and Foreign Subsidiaries' Performance, 10th Workshop on Corporate Governance and Investment, Copenhagen Business School, Porcelsnshaven, URL: https ://conference.cbs.dk/index.php/ccgi/ 10ccgi/paper/view/519/326 [dostęp: 13.10.2012].
• Jean R.-J., Tan, D., Sinkovics R.R. (2011), Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China, "International Business Review", Vol.20.
• Johanson J., Vahlne J.E. (1977), The Internationalization Process of the Firm - A Model of Knowledge Development and Increasing Foreign Market Commitments, "Journal of International Business Studies", Vol. 8, No. 1.
• Kim Y., Gray S.J. (2008), The Impact of Entry Mode Choice on Foreign Affiliate Performance: The Case of Foreign MNEs in South Korea, "Management International Review", Vol. 48, No. 2.
• Larimo J. (1993), Foreign Direct Investment Behaviour and Performance: an analysis of Finnish Direct Manufacturing Investments in OECD Countries, Acta Wasaensia 32, University of Vaasa, Vaasa.
• Lecraw D.J. (1984), Bargaining power, ownership, and profitability of transnational corporations in developing countries, "Journal of International Business Studies", Vol. 15, No. 1.
• Li C.-S., Henley J., Ansell J., Dong T.-P. (2011), Location-specific factors, localisation strategy, and firm performance: a case study of Taiwanese manufacturing MNE subsidiaries investing in China, "Tijdschrift voor Economische en Sociale Geografie", Vol. 102, No. 4.
• Li L. (2007), Multinationality and performance: A synthetic review and research agenda, "International Journal of Management Reviews", Vol. 9, Iss. 2.
• Luo Y. (1998), Timing of Investment and International Expansion Performance in China, "Journal of International Business Studies", Vol. 29, No. 2.
• Luo Y. (1999a), Time-based experience and international expansion: the case of an emerging economy, "Journal of Management Studies", Vol. 36, No, 4.
• Luo Y. (1999b), International Strategy and Subsidiary Performance in China, "Thunderbird International Business Review", Vol. 41, No. 2.
• Luo Y. (2002), Capability Exploitation and Building in a Foreign Market: Implications for Multinational Enterprises, "Organization Science", Vol. 13, No. 1.
• Luo Y., Peng M.W. (1999), Learning to Compete in a Transition Economy: Experience, Environment, and Performance, "Journal of International Business Studies", Vol. 30, No. 2.
• Luo Y., Tung R. (2007), International expansion of emerging market enterprises: A springboard perspective, "Journal of International Business Studies", vol. 38.
• Magnusson P., Westjohn S.A., Boggs D.J. (2009), Order-of-Entry Effects for Service Firms in Developing Markets: An Examination of Multinational Advertising Agencies, "Journal of International Marketing", Vol. 17, No. 2.
• Makino S., Beamish P.W. (1998), Local ownership restrictions, entry mode choice, and FDI performance: Japanese overseas subsidiaries in Asia, "Asia Pacific Journal of Management", Vol. 15, No. 2.
• Makino S., Beamish P.W., Zhao N.B. (2004), The characteristics and performance of Japanese FDI in less developed and developed countries, "Journal of World Business", Vol. 39.
• Makino S., Isobe T., Chan C. M. (2004), Does country matter?, "Strategic Management Journal", Vol. 25, No. 10.
• Matysiak L., Bausch A. (2012), Antecedents of MNE performance: blinded by the obvious in 35 years of literature, "Multinational Business Review", Vol. 20 Iss: 2.
• Meyer K.E. (2001), Institutions, Transaction Costs and Entry Mode Choice in Eastern Europe, "Journal of International Business Studies", Vol. 31, No. 2.
• Miller S.R., Eden L. (2006), Local density and foreign subsidiary performance, "Academy of Management Journal", Vol. 49, No. 2.
• Mulok D., Azimah R., Ainuddin R.O. (2010), Foreign Entry Mode, Cultural Distance and Subsidiary Performance of Malaysian Mnes, "International Journal of Business and Management", Vol. 5, No. 2.
• Nitsch D., Beamish P.W., Makino S. (1996), Entry mode and performance of Japanese FDI in Western Europe, Management International Review, Vol. 36, No. 1.
• Pan Y., Chi P.S.K. (1999), Financial Performance and Survival of Multinational Corporations in China, "Strategic Management Journal", Vol. 20, No. 4.
• Pan Y., Li S., Tse D.K. (1999), The Impact of Order and Mode of Market Entry on Profitability and Market Share, "Journal of International Business Studies", Vol. 30, No. 1.
• Peng M. W. (2004), Identifying the big question in international business research, "Journal of International Business Studies", Vol. 35, No. 2.
• Qin C. R., Ramburuth P., Wang Y. (2011), A conceptual model of Cultural Dis¬tance, MNC Subsidiary Roles, and Knowledge Transfer in China-based subsidiaries, "Organizations and Markets in Emerging Economies", Vol. 2, No. 2.
• Robbins L. (2007), An Essay on the Nature and Significance of Economic Science, Miles Institute Auburn, Alabama.
• Schmid S., Kotulla T. (2009), Standardization and Adaptation in International Marketing and Management - From a Critical Literature Analysis to a Theoretical Framework, [in:] J. Larimo (ed.), Strategies and Management of Internationalization and Foreign Operations, Vaasan Yliopiston Julkaisuja, Vaasa.
• Sharma A. (1998), Mode of entry and ex-post performance, Strategic Management Journal, No. 19.
• Shaver J.M. (1998), Accounting for Endogeneity When Assessing Strategy Performance: Does Entry Mode Choice Affect FDI Survival?, "Management Science", Vol. 44, No. 4.
• Siripaisalpipat P., Hoshino Y. (2000), Firm-specific advantages, entry modes, and performance of Japanese FDI in Thailand, "Japan and the World Economy", Vol. 12, Iss. 1.
• Uhlenbrock K. (1997), Entry motives and firm capabilities: Performance implications for foreign direct investment in Central and Eastern Europe., [in:] L.N. Dosier, J. B. Keys (eds.), Academy of Management Best Paper Proceedings, Boston, MA.
• Vega-Cespedes C., Hoshino Y. (2001), Effects of Ownership and Internalization Advantages on Performance: The Case of Japanese Subsidiaries in the United States and Latin America, "Review of Pacific Basin Financial Markets and Policies", Vol. 4, No. 1.
• Verbeke A., Brugman, P. (2009), Triple-testing the quality of multinationality-performance research: An internalization theory perspective, "International Business Review", No. 19.
• Verbeke A., Li L., Goerzen A. (2009), Toward More Effective Research on the Multinationality-Performance Relationship, "Management International Review", Vol. 49.
• Woodcock P. C., Beamish P. W., Makino S. (1994), Ownership-based entry mode strategies and international performance, "Journal of International Business Studies", Vol. 25, No 2.
• Wu W., Lin C. (2010), Experience, environment, and subsidiary performance in high-tech MNEs, "Journal of Business Research", Vol. 63.