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The internationalization Strategies of French Companies in Romania

Author

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  • Brancu, Laura
  • Bibu, Nicolae Aurelian

Abstract

Central and Eastern European countries (CEECs) are currently attracting important flows of direct investments, after being closed to inflows of foreign capital before 1990. The governments of these countries have been multiplying measures and incentives for encouraging the presence of Multinational Companies (MNCs), during the past years. They are doing it because they consider this fact to represent an important growth vector. This current article will be focusing on Romanian situation. Statistical data indicate that Romania has attracted less foreign investments per inhabitant compared to the other countries in the region. Therefore, the article is aiming to analyze some of the strategies that are followed by companies intending to invest in foreign countries. We will analyze the strategic variables that have determined 62 French companies to invest and implant in Romania, based on the results of a specific survey we have conducted. The main conclusion is that the large majority of them were pursuing a “market seeking” strategy, and only a minority was pursuing a “search for resources” strategy.

Suggested Citation

  • Brancu, Laura & Bibu, Nicolae Aurelian, 2008. "The internationalization Strategies of French Companies in Romania," MPRA Paper 9500, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:9500
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    File URL: https://mpra.ub.uni-muenchen.de/9500/1/MPRA_paper_9500.pdf
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    References listed on IDEAS

    as
    1. Asiedu, Elizabeth, 2002. "On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?," World Development, Elsevier, vol. 30(1), pages 107-119, January.
    2. Bibu, Nicolae Aurelian & Brancu, Laura, 2008. "Convergences of the Romanian societal culture with European culture clusters in the process of European integration. The role of intercultural teams management in increasing European cohesion," MPRA Paper 9476, University Library of Munich, Germany.
    3. Shige Makino & Chung-Ming Lau & Rhy-Song Yeh, 2002. "Asset-Exploitation Versus Asset-Seeking: Implications for Location Choice of Foreign Direct Investment from Newly Industrialized Economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 403-421, September.
    4. 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.
    5. Chakrabarti, Avik, 2001. "The Determinants of Foreign Direct Investment: Sensitivity Analyses of Cross-Country Regressions," Kyklos, Wiley Blackwell, vol. 54(1), pages 89-113.
    6. Andrzej Baniak & Jacek Cukrowski & And Jan Herczyñski, 2003. "On the Determinants of Foreign Direct Investment in Transition Economies," Problems of Economic Transition, M.E. Sharpe, Inc., vol. 48(2), pages 6-28, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    entry strategy; multinational company; Central and Eastern European countries; Romania;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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