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

Marco Mutinelli and Lucia Piscitello

International Business Review, 1997, vol. 6, issue 2, 185-205

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.

Keywords: FDI; Central; and; Eastern; Europe; Firm-specific; Factors; International; Experience; Firm; Size (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (9)

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