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Abstract

In the wake of the fundamental changes that have occurred in the Central European countries (CEC) and the New Independent States (NIS) of the former Soviet Union (FSU) since the events of late 1989 there has been a considerable increase in the activities of major Western firms in the region via acts of foreign direct investment (EDI). In seeking to better understand the nature of such activities this thesis provides a detailed examination of FDI by major Western firms that has occurred between 1989 and the end of the first quarter of 1996 within the context of the environment identified as Central Europe (CE)(the Czech Republic, Hungary, Poland, Romania, and Slovakia).

The focal point of this investigation is on a series of exploratory type questions that needed to be asked and answered, namely Why do major Western firms engage in FDI within a specific CE host country (motivational and locational factors of FDI)?; How have major Western firms invested within a specific CE host country (entry modes) and how have these modes evolved over time (evolution of ownership modes)?; What means are utilized by major Western firms to evaluate the performance of their FDIs (performance criteria) and consequently how have these direct investments performed within the chosen CE host country environment (relative performance) over time?; and What strategies have been employed by major Western firms in the CE environment (geographical and functional strategies)?

The study was facilitated by an examination of the activities of Western firms operating within the CE environment through a sample of 1,222 individual local firms with foreign capital participation. In doing so, the researcher utilized an amalgamation of desk research, research questionnaires, and selected case studies.

In reference to the pertinent literature, this study reinforces some previous findings, contradicts others, provides some clarification in certain areas, and also adds something new to the base of knowledge of the subject.

Publication Type:	Thesis (Doctoral)
Subjects:	H Social Sciences > HG Finance
Departments:	Bayes Business School > Bayes Business School Doctoral Theses Bayes Business School > Finance Doctoral Theses

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