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Differences in the strategic orientation of Italian MNEs in Central and Eastern Europe. The influence of firm-specific factors

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  • Mutinelli, Marco
  • Piscitello, Lucia

Abstract

The flow of foreign direct investment (FDI) to Central and Eastern Europe (CEE) increased rapidly from the end of the last decade. The upheavals which led to dramatic changes in the social, political and economic environment paved the way to western firms for unique opportunities to expand into new markets with a high potential for development as well as for efficient localisation in terms of cost and access to resources. Nevertheless, empirical literature has mainly focused only on the behaviour of the biggest multinational enterprises and less attention has been paid to the SMEs' contribution. This paper aims to highlight the role of SMEs in exploiting the advantages offered by the recent openness of CEE markets. The empirical analysis refers to the Italian case where SMEs constitute the bulk of the industrial system and some evidence on the strategic motivations leading Italian firms to invest in manufacturing activities in CEE is provided. In particular, it is suggested that strategies underlying FDI are linked to the international experience and other characteristics of the parent firm. The behaviour of 124 Italian parent companies (corresponding to 182 direct investments) in the period 1990-94 is analysed by two econometric models.

Suggested Citation

  • Mutinelli, Marco & Piscitello, Lucia, 1997. "Differences in the strategic orientation of Italian MNEs in Central and Eastern Europe. The influence of firm-specific factors," International Business Review, Elsevier, vol. 6(2), pages 185-205, April.
    • Handle: RePEc:eee:iburev:v:6:y:1997:i:2:p:185-205
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    2. Parracho João & Silva Susana, 2021. "Measuring Experience in International Business: A Systematic Literature Review," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 66(2), pages 38-55, August.
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    4. Tomasz Dorożyński & Anetta Kuna-Marszałek & Janusz Świerkocki, 2017. "Motives of Poland's Outward Direct Investments from the Lodz Region: Results of a Direct Study," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(2), pages 101-122.
    5. Julia Manea & Robert Pearce, 2006. "MNEs’ strategies in Central and Eastern Europe: key elements of subsidiary behaviour," Management International Review, Springer, vol. 46(2), pages 235-255, March.
    6. Giovanni Balcet & Giampaolo Vitali, 2000. "Multinational Strategies and Outward-Processing Trade between Italy and the CEECs: The Case of Textile-Clothing," CERIS Working Paper 200015, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    7. Shih-Kuan Chiu & Fang-Yi Lo & Yuliana Susy, 2015. "Taiwanese Foreign Direct Investment in Southeast Asia: An Empirical Investigation of the OLI Framework," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 11(2), pages 127-141, July.
    8. Brancu, Laura & Bibu, Nicolae Aurelian, 2008. "The internationalization Strategies of French Companies in Romania," MPRA Paper 9500, University Library of Munich, Germany.
    9. Adam, Antonis & Filippaios, Fragkiskos, 2007. "Foreign direct investment and civil liberties: A new perspective," European Journal of Political Economy, Elsevier, vol. 23(4), pages 1038-1052, December.

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