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Conventional or Atypical: FDI in the Internationalisation Process of Polish Firms

  • Piotr Trapczynski

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    The principal aim of this study is to provide preliminary evidence on whether Polish firms behave according to the conventional theory of firm internationalisation. To fulfil this objective, an overarching research hypothesis that Polish firms follow gradual expansion patterns is formulated based on theoretical concepts and available data on Polish internationalisation. It is subsequently tested on a sample of 98 Polish outward investors. While the study confirms the gradual expansion patterns of Polish firms, in which exports and contract manufacturing mostly precede foreign direct investiment (FDI) projects in a given host country, there is also visible evidence for irregular internationalisation paths, in which FDI is the first entry mode into foreign markets. The vast majority of Polish outward investors still control a limited network of foreign subsidiaries. The paper is one of the few studies explicitly related to establishment chains of Polish firms, thus providing an empirical contribution to the debate on the internationalisation of emerging multinationals. The limited scope of Polish firms' internationalisation indicates an important need for a more widespread implementation of support policies.

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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2014/01/TMP_2014_01_09.pdf
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    Article provided by Faculty of Economics, University of Miskolc in its journal Theory Methodology Practice (TMP).

    Volume (Year): 10 (2014)
    Issue (Month): 01 ()
    Pages: 81-90

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    Handle: RePEc:mic:tmpjrn:v:10:y:2014:i:01:p:81-90
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    1. Bonaglia, Federico & Goldstein, Andrea & Mathews, John A., 2007. "Accelerated internationalization by emerging markets' multinationals: The case of the white goods sector," Journal of World Business, Elsevier, vol. 42(4), pages 369-383, December.
    2. Yadong Luo & Rosalie L Tung, 2007. "International expansion of emerging market enterprises: A springboard perspective," Journal of International Business Studies, Palgrave Macmillan, vol. 38(4), pages 481-498, July.
    3. Stan D Reid, 1981. "The Decision-Maker and Export Entry and Expansion," Journal of International Business Studies, Palgrave Macmillan, vol. 12(2), pages 101-112, June.
    4. Bonaglia, Federico & Goldstein, Andrea & Mathews, John, 2006. "Accelerated Internationalisation by Emerging Multinationals: the Case of White Goods Sector," MPRA Paper 1485, University Library of Munich, Germany.
    5. Fletcher, Richard, 2001. "A holistic approach to internationalisation," International Business Review, Elsevier, vol. 10(1), pages 25-49, February.
    6. Kent Eriksson & Jan Johanson & Anders Majkg�rd & D Deo Sharma, 1997. "Experimental Knowledge and Costs in the Internationalization Process," Journal of International Business Studies, Palgrave Macmillan, vol. 28(2), pages 337-360, June.
    7. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan, vol. 40(9), pages 1411-1431, December.
    8. John Child & Suzana B. Rodrigues, 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 381-410, November.
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