Investment decisions in Eastern Europe: choosing the optimum investment – the case of Poland

Abstract

Notes there is much prior work on the benefits of the various forms of entry into new markets, including alliance, merger or greenfield; but little empirical evidence regarding pinpointing the optimum investment for a specific new market. Utilizes the data from 130 top multinationals entering the new market of Poland. Draws also on the theoretical framework of entry modes and considers the issue from a specific industry perspective. There is further consideration of countries’ specific investments. Draws upon the theoretical approaches of Hofstede and of Trompenaars when considering how national culture influences the main strategic entry decision into new markets. Links theories of foreign direct investment and theories of national culture – prominent areas in today’s management literature. Concludes with some interesting findings for policy makers in terms of the importance of merger activities in the Polish case, with possible application (with variations) in other emerging markets.