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.
This paper compares cross-border acquisition with Greenfield foreign direct investment (FDI). It investigates the impact of these two FDI modes on the long-term performance of foreign subsidiaries. ...By focusing on the performance of the foreign affiliate, it departs from the rich survival literature and for the first time explores the precise performance of these ventures over a longer period of time. In particular, by drawing on the theory of industrial organization (IO), we empirically examine to which extent the two different forms of market entry help to explain the development of leading positions of affiliates in the host country. Our field research is based on a wide original sample of 179 manufacturing subsidiaries of foreign transnational corporations (TNCs) located in Greece. The econometric results indicate that acquisitions exhibit specific signs of excellence in terms of market share, firm size, capital intensity and product differentiation. We ascertain that at least as far as market share and capital intensity are concerned, the superiority of the cross-border acquisitions rests on both the fact that TNCs are eager to acquire the most efficient firms in the host country, and actively engage in assisting these firms in their up-grading procedures.
This study incorporates brownfield with conventional greenfield and acquisition into an analysis of the determinants of foreign direct investment (FDI) mode choice. The investigation was conducted ...through a mail survey of Taiwanese manufacturing firms investing in China (including Hong Kong), ASEAN, Japan, NAFTA and EU. The results showed that firms with higher relocation costs and greater post‐acquisition restructuring experience will prefer acquisition to greenfield. If it is imperative for these firms to transfer their specific technological resources to the host market and to avoid competition within their own industries in the foreign market, a brownfield strategy seems to be a good compromise between acquisition and greenfield. Finally, this study proposes relevant implications for practitioners and future researchers.
Résumé
Cette étude intègre le brownfield (l'acquisition d'entre‐prises existantes sur terrain industriel, de façon à effectuer un nouveau remplacement profond à court terme), le greenfield (la création de nouvelles entreprises sur terrain vierge), et la prise de participation (l'acquisition d'entreprises existantes de façon à donner une influence prépondérante dans le contrôle de gestion) dans une analyse des déterminants pour l'IDE (Investissement Direct Étranger) mode choix. Les enquêtes ont été faites sur des entreprises de fabrication taïwanaises investissant en Chine (Hong Kong inclus), ASEAN, Japon, NAFTA, et EU. Les résultats montrent que les entreprises plus chargées de frais de déménagement et ayant plus d'expériences de restructurations de post‐acquisition préfèrent la prise de participation au greenfield. De plus, s'il est impératif pour ces entreprises de transférer leur ressources techniques spécifiques dans le marché d'accueil aussi bien que d'éviter des compétitions au sein des entreprises du même commerce dans le marché étranger, le brownfield paraît être un choix de compromis entre la prise de participation et le greenfield. Enfin, des implications appropriées sont proposées pour les praticiens et les chercheurs futurs.
Nowadays, China is one of the most important destinations for international expansion of firms from all over the world. Based on the traditional theory on foreign direct investment and the ...resource-based view of the firm, this paper analyzes the influence of various tangible and intangible firm-specific factors on the choice amongst three different modes of entry into China: representative office, joint venture and wholly-owned subsidiary. The results obtained suggest that the size of the investing firm, its performance as well as its experience regarding the country have a positive influence on the choice of types of foreign direct investment that involve a high level of resources commitment. In addition, the specific aim of the project affects these relationships.
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