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

Abstract

This study identifies and investigates the relationships between FDI motives and establishment modes in the context of outward foreign direct investment (OFDI) undertaken by companies from Poland. It is based on survey data collected in 2013 from Polish companies engaged in FDI. A number of hypotheses, derived from pertinent outward FDI literature, are tested using quantitative analysis tools. Its main findings show that almost half of the surveyed firms preceded their first FDI project with exports, but at the same time a similar proportion of firms had no host-country experience prior to their initial FDI project. The study indicates the leading role of market-seeking motives in Polish OFDI followed by efficiency-seeking and strategic assetseeking motives, with only a marginal role being left to resource-seeking.