Greenfield or Acquisition Entry? An Impact of Foreign Direct Investment on the Competitiveness of Polish Investors Cover Image

Greenfield or Acquisition Entry? An Impact of Foreign Direct Investment on the Competitiveness of Polish Investors
Greenfield or Acquisition Entry? An Impact of Foreign Direct Investment on the Competitiveness of Polish Investors

Author(s): Małgorzata Jaworek, Włodzimierz Karaszewski, Małgorzata Szałucka
Subject(s): National Economy, Business Economy / Management, Micro-Economics, International relations/trade, Economic development, Financial Markets
Published by: Uniwersytet Ekonomiczny w Krakowie
Keywords: international business; FDI; establishment mode choice, greenfield; acquisition; competitiveness;

Summary/Abstract: Objective: The purpose of this article is to determine the impact of Polish FDI companies on their competitiveness, depending on their establishment mode choice in the host country (greenfield investment vs. acquisition). Research Design & Methods: The study used a direct interview method. The results were analysed using impact indicators (w) calculated as the arithmetic mean of numerical values assigned to each response as well as Fisher’s exact test. Statistical calculations were performed using the IBM SPSS Statistics software version 21.0.0.1. Findings: The impact of FDI on investor competitiveness in relation to the main competitors operating on the home market and on foreign markets depends on FDI entry mode (greenfield investment vs. acquisition), among other things. Implications & Recommendations: The results of this study may be the starting point for further research on the impact of FDI on competitiveness, particularly through foreign acquisitions. It should be assumed that as Polish companies gain experience on the international stage, this mode of entry will be chosen by investors more frequently. Contribution & Value Added: The uniqueness of the following study is in the presentation of the results of original empirical research, which demonstrate the relationship between the foreign establishment mode choice (greenfield investment vs. acquisition) and the competitiveness of investing companies. Ex post evaluations were taken into account while forming the conclusions.

  • Issue Year: 6/2018
  • Issue No: 2
  • Page Range: 137-152
  • Page Count: 16
  • Language: English