INTERNAL DEVELOPMENT DETERMINANTS OF POLISH COMPANIES IN THE USA: TRADITIONAL INDUSTRIES VS. NEW TECHNOLOGIES
DOI:
https://doi.org/10.12775/JPM.2018.151Keywords
foreign direct investment, internationalisation, internal development determinants, foreign subsidiaries, Central and Eastern EuropeAbstract
Purpose: The purpose of the study was to identify the internal development determinants of Polish companies in the USA, considering the character of their activity, i.e. splitting them into two business sectors – traditional industries and new technologies.
Methodology: The research has been conducted using a mail survey method among Polish companies in the USA. As a result, 19 properly filled survey questionnaires were returned.
Findings: The findings of the research indicated that Polish companies see major determinants of development in the USA in internal factors, including applied technology, innovative products/services, organisation of production processes/services and management skills. Slight differences in the answers of companies representing both groups (traditional industries and new technologies) mainly concerned the strength of impact of particular assets. For companies in the new technologies group, most important growth determinants were, above all, used technology and innovation of products/services, while companies operating in traditional industries found the strongest positive impact in leadership, competences of the management staff and organisation culture.
Implications: Both the research results and the very fact of involvement in foreign investments in such competitive environment demonstrate that Polish companies are aware of the strength of their assets. Just as enterprises from the developed countries, they benefit from ownership advantages on foreign markets. These are not, however, cost advantages attributed to companies from the emerging markets in the subject literature, but those perceived as the domain of the companies from the developed countries.
Originality: This paper concerns a still insufficiently defined problem of foreign direct investments of companies from mid-range emerging economies in developed countries.
Keywords: foreign direct investment, internationalisation, internal development determinants, foreign subsidiaries, Central and Eastern Europe
Paper type: Research paper
References
Aharoni, Y. (2014), “Theoretical debates on multinationals from emerging economies”, in: Cuervo-Cazurra, A., Ramamurti, R. (Eds.), Understanding multinationals from emerging markets, Cambridge University Press, Cambridge, pp. 15-30.
Barney, J. (1991), “Firm Resources and Sustained Competitive Advantage”, Journal of Management, Vol. 17 No. 1, pp. 99-120.
Bonaglia, F., Goldstein, A., Mathews, J.A. (2007), “Accelerated internationalization by emerging markets’ multinationals: The case of the white goods sector”, Journal of World Business, Vol. 42 No. 4, pp. 369-383.
Caccia, F.C., Baleix, J.M. (2018), “FDI from emerging countries: motivations and impacts”, Revista de Economia Mundial, Vol. 50, pp. 65-82.
Chen, H., Chen., T.-J. (1998), “Network Linkages and Location Choice in Foreign Direct Investment”, Journal of International Business Studies, Vol. 29 No. 3, pp. 445-467.
Cuervo-Cazurra, A. (2012), “Extending theory by analyzing developing country multinational companies: solving the goldilocks debate”, Global Strategy Journal, Vol. 2 No. 3, pp. 153-167.
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 No. 6, pp. 957-979.
Cuervo-Cazurra, A., Ramamurti, R. (2013), Understanding multinationals from emerging markets, Cambridge University Press, Cambridge.
Dunning, J.H. (1981), “Explaining the International Direct Investment Position of Countries: Towards a Dynamic or Developmental Approach”, Weltwirtschaftliches Archiv, Vol. 117 No. 1, p. 30-64.
Dunning, J.H., Lundan, S.M. (2008), Multinational Enterprises and the Global Economy, Edward Elgar Publishing, Northampton.
Dunning, J.H., Lundan, S.M. (2010), “The institutional origins of dynamic capabilities in multinational enterprises”, Industrial and Corporate Change, Vol. 19 No. 4, pp. 1225-1246.
Eden, L., Dai, L. (2010), "Rethinking the O in Dunning’s OLI/Eclectic Paradigm", Multinational Business Review, Vol. 18 No. 2, pp. 13-34.
Gaur, A.S., Kumar, V., Singh D. (2014), “Institutions, resources, and internationalization of emerging economy firms”, Journal of World Business, Vol. 49 No. 1, pp. 12-20.
Godziszewski, B. (2001), Zasobowe uwarunkowania strategii przedsiębiorstwa [Resource conditions in the company’s strategy], Wydawnictwo Naukowe Uniwersytetu Mikołaja Kopernika, Toruń.
Goldstein, A. (2007), Multinational companies from emerging economies: composition, conceptualization and direction in the global economy, Palgrave Macmillian, Basingstoke.
Gorynia, M., Nowak, J., Trąpczyński, P., Wolniak, R. (2015), “Outward FDI of Polish firms: The role of motives, entry modes and location factors”, Journal for East European Management Studies, Vol. 20 No. 3, pp. 328-359.
Hitt, M.A., Bierman, L., Uhlenbruck, K., Shimizu, K. (2006), “The Importance of Resources in the Internationalization of Professional Service Firms: The Good, the Bad, and the Ugly”, The Academy of Management Journal, Vol. 49 No. 6, pp. 1137-1157.
Hoskisson, R.E., Wright, M., Filatotchev, I., Peng, M.W. (2013), “Emerging Multinationals from Mid-Range Economies: The Influence of Institutions and Factors Markets”, Journal of Management Studies, Vol. 50 No.7, pp. 1295-1321.
IMF (2018), “World Economic Outlook Database”, available at: https://www.imf.org/external/pubs/ft/weo/2018/02/weodata/index.aspx (accessed 7 September 2018).
Jaworek, M. (2008), „Stymulanty i destymulanty podejmowania inwestycji bezpośrednich za granicą przez polskie przedsiębiorstwa” [„Incentives and Disincentives for Undertaking Foreign Direct Investment by Polish Companies”], in: Karaszewski, W. (Ed.), Bezpośrednie inwestycje zagraniczne polskich przedsiębiorstw [Foreign Direct Investment by Polish Companies], Wydawnictwo „Dom Organizatora”, Toruń.
Jaworek, M. (2013), “Stymulanty i destymulanty aktywności inwestycyjnej polskich przedsiębiorstw za granicą” [„Investment Incentives and Disincentives among Polish Companies Abroad”], in: Karaszewski, W. (Ed.), Aktywność inwestycyjna polskich przedsiębiorstw za granicą – czynniki i skutki [Investment Activity of Polish Companies abroad – factors and effects], PWE, Warszawa.
Karaszewski, W. (2004), Bezpośrednie inwestycje zagraniczne. Polska na tle świata [Foreign Direct Investment. Poland on the Background of the World], Wydawnictwo „Dom Organizatora”, Toruń.
Karaszewski, W., Jaworek, M., Kuzel, M., Szałucka, M., Szóstek, A. (2014), Foreign Direct Investment by Polish Companies, Wydawnictwo Naukowe Uniwersytetu Mikołaja Kopernika, Toruń.
Kedia, B., Gaffney, N., Clampit, J. (2012), “EMNEs and knowledge-seeking FDI”, Management International Review, Vol. 52 No. 2, pp. 155-173.
Kowalewski, O., Radło, M.-J. (2014), “Determinants of foreign direct investment and entry modes of Polish multinational enterprises: A new perspective on internationalization”, Communist and Post-Communist Studies, Vol. 47 No. 3-4, pp. 365-374.
Kuzel, M. (2018), Kapitał intelektualny organizacji w procesie internacjonalizacji polskich przedsiębiorstw – inwestorów zagranicznych [An Organisation’s Intellectual Capital in the Process of Internationalisation of Polish Companies – Foreign Investors], Wydawnictwo Naukowe Uniwersytetu Mikołaja Kopernika, Toruń.
Lau, C.-M., Ngo, H.-Y., Yiu, D.W. (2010), “Internationalization and organizational resources of Chinese firm”, Chinese Management Studies, Vol. 4 No. 3, pp. 258-272.
Makino, S., Lau, C.-M., Yeh, R.-S. (2002), “Asset-exploitation Versus Asset-Seeking: Implications for Location Choice of Foreign Direct Investment from Newly Industrialized Economies”, Journal of International Business Studies, Vol. 33 No. 3, pp. 403-421.
Obłój, K., Wąsowska, A. (2012), “Location Determinants of Polish Outward FDI and the (limited) Impact of the Global Crisis”, in: Marinov, M. (Ed.), Emerging economies and their firms in the global crisis, Palgrave Macmillan, London.
Pietrasieński, P. (2014), Aktywizowanie internacjonalizacji przedsiębiorstw – dobre praktyki rządów, strategie wsparcia w Dolinie Krzemowej [Activating Internationalisation of Enterprises – Good Government Practices, Support Strategies in the Silicon Valley], PWE, Warszawa.
Statistics Poland (2016), Activity of enterprises having foreign entities in the years 2008-2014, Warsaw.
Statistics Poland (2019), Activity of enterprises having foreign entities in 2017, Warsaw.
Trąpczyński, P. (2015), Foreign direct investment strategies and performance in the internationalization of Polish companies, Difin, Warsaw.
Trąpczyński, P., Banalieva, E.R. (2016), “Institutional difference, organizational experience, and foreign affiliate performance: Evidence from Polish firms”, Journal of World Business, Vol. 51 No. 5, pp. 826-842.
Trąpczyński, P., Gorynia, M. (2017), “A double-edged sword? The moderating effects of control on firm capabilities and institutional distance in explaining foreign affiliate performance”, International Business Review, Vol. 26 No. 4, pp. 697-709.
Trevino, L.J., Grosse, R. (2002), “An analysis of firm-specific resources and foreign direct investment in the United States”, International Business Review, Vol. 11 No. 4, pp. 421-452.
Tseng, C.-H., Tansuhaj, P., Hallagan, W., McCullough, J. (2007), “Effects of firm resources on growth in multinationality”, Journal of International Business Studies, Vol. 38 No. 6, pp. 961-974.
UNCTAD (2019), World Investment Report 2019: Special Economic Zones 2019, Geneva.
Wang, C., Hong, J., Kafouros, M., Boateng, A. (2011), “What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical framework”, International Business Review, Vol. 21 No. 3, pp. 425-438.
Yeoh, P.-L., Roth, K. (1999), “An Empirical Analysis of Sustained Advantage in the U.S. Pharmaceutical Industry: Impact of Firm Resources and Capabilities”, Strategic Management Journal, Vol. 20 No. 7, pp. 637-653.
Yoo, D., Reimann, F. (2017), “Internationalization of Developing Country Firms into Developed Countries: The Role of Host Country Knowledge-Based Assets and IPR Protection in FDI Location Choice”, Journal of International Management, Vol. 23 No. 3, pp. 242-254.
Downloads
Published
How to Cite
Issue
Section
License
Copyright
Articles submitted to the journal should not have been published before in their current or substantially similar form, or be under consideration for publication with another journal. Authors submitting articles for publication warrant that the work is not an infringement of any existing copyright and will indemnify the publisher against any breach of such warranty. For ease of dissemination and to ensure proper policing of use, papers and contributions become the legal copyright of the publisher unless otherwise agreed.
Plagiarism and ghostwriting
In response to the issue of plagiarism and ghostwriting the editors of the Journal of Positive Management has introduced the following rules to counteract these phenomena:
1. Contributors should be aware of their responsibility for a content of manuscripts.
2. Collective authors are obliged to reveal the contribution and an affiliation of each author (i.e. who is an author of specified part of a paper).
3. Any act of dishonesty will be denounced, the editors will inform appropriate institutions about the situation and give evidence of all cases of misconduct and unethical behaviour.
4. The editors may ask contributors for financial disclosure (i.e. contribution of specified institutions).
Stats
Number of views and downloads: 309
Number of citations: 0