Emerging Multinationals and Outward FDI Development

Mariusz-Jan Radlo

Eastern European Economics, 2012, vol. 50, issue 2, 59-84

Abstract: The aim of this paper is to shed light on the Polish outward foreign direct investments (OFDIs) with special attention on the growing interest of many Polish companies to expand abroad utilizing equity-based modes of entry. The paper shows that the increase of Polish OFDI in recent years reflects the growing ability and willingness of Polish companies to expand mainly to European markets. It is also observed that the emerging Polish multinationals primarily expand to regional markets of Central, Eastern, and Southeastern Europe as well as Germany. The major motivation for the expansion was to increase market power and access to the market. The current economic crisis resulted in a deceleration of OFDI flows. However, in the case of Polish companies, the deceleration is not as high as one might expect and in 2008 and 2009, Polish companies made a relatively high number of cross-border deals. The paper also analyzes three cases of companies built from scratch in the transition period that now belong to the group of emerging Polish multinationals. When analyzing these cases, it can be seen that there were two stages in their development: during the first stage (approximately one decade), these companies focused on the development of their position in their home market; after they acquired a relatively strong position in the home market, they decided to expand abroad. Their first choice when expanding abroad was to build a strong position in regional markets of the Central and East European countries.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=42G3105457831271 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:eaeuec:v:50:y:2012:i:2:p:59-84

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MEEE20

Access Statistics for this article

More articles in Eastern European Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().