Internationalization of Polish Firms via Foreign Direct Investment: A Multiple-Case-Study Approach

Does outward FDI by Polish multinationals support existing theory? Findings from a quantitative study

“…However, in the case of firms originating from CEE countries, the evolutionary behaviour in the internationalization process can be interpreted as a phenomenon driven by the exploitation of previous business connections frequently established before the beginning of the transition process in the early 1990s. Previous experience with doing business in the CEE region can be regarded as a key advantage in embarking on capital expansion there [Gorynia et al 2013a]. At the same time a significant number of the largest FDI projects undertaken by the sample firms were made without any prior experience in the target country or elsewhere.…”

“…The volume of OFDI by firms originating from Central and Eastern European (CEE) economies has raised the question about number of issues related to the specific character of this category of firm, including their competitiveness [Jaworek, Szałucka, and Szóstek 2009], foreign expansion motives [Rosati and Wiliński 2003] or entry modes [Gorynia et al 2013a]. Amongst CEE-related studies a macroeconomic perspective has prevailed [Antalóczy and Éltető 2003;Bohata and Zeplinerova 2003;Varblane, Reiljan, and Roolaht 2003;Svetličič and Jaklič 2003;Wolniak 2008, 2010;Kalotay 2004;Radlo and Sass 2012], although studies combining macro-level with firm-level analysis can also be found [Svetličič, Rojec, and Trtnik 2000;Rugraff 2010;Zemplinerová 2012;Gorynia et al 2013a, b].…”

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“…By increasing the linkages with the world economy, Poland aimed at fostering growth and closing the income gap to advanced economies of Western Europe. Up to the outset of economic changes in the cee region in the 1990s, Poland had remained largely closed towards its external environment (Gorynia et al 2014b). Hence, international business operations were not used for stimulating the economy, enhancing domestic productivity or exploiting the international allocation of labour.…”

“…The progressing liberalisation of the flows of goods and services and the related increase of competition in the domestic market significantly afflicts development perspectives for firms that decide to confine their operations merely to the local market, for even such behaviour does not necessarily allow avoiding confrontation with foreign competitors. Thus, in many cases internationalisation poses a unique chance for improving competitiveness and becomes an inherent constituent of the strategy of Polish firms towards the expansion of foreign investors (Gorynia 2005;Gorynia et al 2013). Exports, imports and fdi are common modes of internationalisation amongst Polish firms, whereby the latter are still implemented relatively seldom in spite of a visible increase of interest in this expansion strategy in the recent years.…”

Towards a Strategic Shift? On the Evolution of Poland’s Position in the Global Economy in 2003–2012

“…The progressing liberalisation of the flows of goods and services and the related increase of competition in the domestic market significantly afflicts development perspectives for firms that decide to confine their operations merely to the local market, for even such behaviour does not necessarily allow avoiding confrontation with foreign competitors. Thus, in many cases internationalisation poses a unique chance for improving competitiveness and becomes an inherent constituent of the strategy of Polish firms towards the expansion of foreign investors (Gorynia 2005;Gorynia et al 2013).…”