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Entry Modes and Firm Performance in a Transition Economy: Evidence from Inward FDI to Romania

  • Laura N. Haar
  • , Nicolae Marinescu

Research output: Contribution to journalArticlepeer-review

Abstract

The article analyzes the characteristics and performance of foreign direct investment (FDI) to Romania since the 1990s. We provide evidence for some of the commonly advanced propositions about FDI in transition economies, namely the selection of entry and firms' performance over time and across economic sectors. Contrary to the FDI literature, multinational enterprises in Romania favored greenfield FDI over acquisitions, although this does not apply to oligopolistic and technology intensive industries. Specific relationships between the nationality of the investor, the location and the entry modes decisions are also analyzed. We observed that acquisitions exhibited higher profit margin and turnover compared to greenfield FDI. © 2014 Copyright Taylor & Francis Group, LLC.
Original languageEnglish
Pages (from-to)44-67
Number of pages23
JournalJournal of East-West Business
Volume20
Issue number1
DOIs
Publication statusPublished - 2014

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 17 - Partnerships for the Goals
    SDG 17 Partnerships for the Goals

Keywords

  • acquisitions
  • greenfield investment
  • multinational performance
  • Romania

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