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Content archived on 2024-05-21

Foreign investment as an entry mode and post-entry behaviour in eastern europe

Objective

The research project aims at making a contribution to the theoretical literature and empirical assessment of foreign investment timing and mode and post- entry behavior. To achieve this, we formulated three research objectives, each of which is based on a framework of post-entry behavior models and real option theory. These are combined with relevant empirical tests. The objective of the first part is to develop a typology of first and later movers into new geographical markets, based on hazard models. As an empirical application we would like to show that the expectations on accession of CEE countries to the EU and the critical mass of investment influence the order of investment entry into certain European industries differently than in others. The objective of the second part is to explain entry mode nesting an ownership decision (joint or single venturing) and a 'way of growth' decision (acquisition versus green-field investment). As an empirical illustration we would like to illustrate why certain investors deviate from the entry mode most typical of the industry. The objective of the third part is to develop a typology of investment patterns and to question the path dependency of investment mode in the sense of ' way of growth'. The empirical illustration is an analysis of a full decade of investment patterns in the Central and Eastern European countries by Benelux investors. The goal is to find out in which occasions original investments were meant as options to remain flexible and why. (The goal is, for the empirical part of our research, made reachable within a two-year period, because we can exploit an enriched data set on EU15 foreign investments in the CEE countries we developed for our doctoral research.)

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Topic(s)

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Call for proposal

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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

RGI - Research grants (individual fellowships)

Coordinator

TILBURG UNIVERSITY
EU contribution
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Address
Warandelaan 2
5037 AB TILBURG
Netherlands

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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

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