Motives of Poland's Outward Direct Investments from the Lodz Region: Results of a Direct Study

Abstract

Objective: The objective of the paper is to identify motivation behind FDI followed by enterprises from the Lodz Region and to find out if these motives are similar in companies different in size, share of foreign capital and internationalisation path.

Research Design & Methods: Empirical research was based on questionnaire-based interviews and in-depth interviews which covered 80% of outward direct investors from the Lodz Region. It provided grounds to assess the importance of their motives.

Findings: Enterprises from the Lodz region which decided to get involved as FDIs most often pointed to market seeking motives. The significance of other motives was secondary. With several exceptions (mainly with respect to cost) the size of an enterprise, foreign capital holdings and internationalisation path did not differentiate motives that encouraged respondents to engage their resources abroad.

Implications & Recommendations: The study is explorative, and its results should be understood as the starting point for further studies. Results suggest that, firstly, at the present stage of internationalisation the state should offer possible support to all operators on equal conditions. Secondly, if already some enterprises invest abroad seeking better and cheaper employees, it may be profitable for the state to take upgrade the quality of workforce and reduce its relatively high costs in Poland.

Contribution & Value Added: The main input delivered by the study to the current body of knowledge about OFDI motives consists in trying to identify relationships between motives followed by the Polish direct investors and their selected characteristics (size of a firm, share of foreign capital holdings, and internationalisation path).

Keywords

internationalisation, motives for FDI activity, Poland’s outward direct investments, Lodz region

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