Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector

Harun Kaya

Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector

Year 2014, Volume: 43 Issue: 2, 368 - 390, 14.11.2014

Harun Kaya

Abstract

Abstract

This paper aims to determine and assess strategic motives of Turkish manufacturing firms’ (TMFs) foreign direct investment (FDI) involvement by the use of a broad set of factual and perceptual measures. Relying on the past research we have developed a number of hypotheses relating to firm characteristics and motives. Based on the analysis of 94 parent firm managers’ responses to a survey, first, we find that market-related motives (such as market potential, market access) appear to be the most important motives. Second, the results show that the relative importance of TMFs’ strategic motives do not vary with parent firm age; but, to a limited degree, they vary depending on subsidiary firm age. Third, strategic motives, to some extend, differ based on the size of the sampled firms and the size of their foreign subsidiaries. Fourth, motives of TMFs do not vary based on their sub-sector and entry mode. Finally, the results suggest that favorable business environment seeking and strategic asset seeking motives are significantly associated with investment in developed countries (DCs); and, cultural asset exploiting and efficiency seeking motives are significantly associated with investment in less developed countries (LDCs).

Keywords

Key Words: Foreign Direct Investment (FDI), Strategic FDI Motives, Developing Country-Based FDI Firms, Turkish Manufacturing Firms, Entry Modes, Host Country Selection

References

D.E. Thomas, R Grosse, Country-of-Origin Determinants of Foreign Direct Investment in an Emerging Market: The Case of Mexico. Journal of International Management, 7, 59-79 (2001).
K.C. Mellahi, J. G. Frynas, H. Al-Bortmani, Motives for Foreign Direct Investment in Oman. Thunderbird International Business Review, 45, 4, 431-446 (2003).
P. Walkenhorst, Economic Transition and the Sectoral Patterns of Foreign Direct Investment. Emerging Markets Finance and Trade, 40, 2, 5–26 (2004).
S.K. Bhaumik, S. Gelb, Determinants of Entry Mode Choice of MNCs in Emerging Markets: Evidence from South Africa and Egypt. Emerging Markets Finance and Trade, 41, 2, 5-24 (2005).
R. Tahir, J. Larimo, Strategic Motivations of Finnish FDIs in Asian Countries. Cross Cultural Management: An International Journal, 13, 3, 244-256 (2006).
D. Quer, E. Claver, Determinants of Spanish Foreign Direct Investment in Morocco. Emerging Markets Finance and Trade, 43, 2, 19-32 (2007).
D. Lecraw, Direct Investment by Firms from Less Developed Countries. Oxford Economic Papers, 29, 3, 442-457 (1977).
L.T. Wells, “The Internationalization of Firms from Developing Countries”, in A. Tamir, C. P. Kindleberger (Ed.), Multinationals from Small Countries, MIT Press, Cambridge, 1977.
L.T. Wells, Third World Multinationals, MIT Press, Cambridge, 1983.
S. Lall, The Emergence of Third World Multinationals: Indian Joint Ventures Overseas. World Development, 10, 2, 127-146 (1982).
S. Lall, The Rise of Multinationals from the Third World. Third World Quarterly, 5, 3, 618-26 (1983).
K. Kumar, K.Y. Kim, The Korean Manufacturing Multinationals. Journal of International Business Studies, Spring/Summer, 45-60 (1984).
D.J. Lecraw, Outward Direct Investment by Indonesian Firms: Motivation and Effects. Journal of International Business Studies, Third Quarter, 589-600 (1993).
[C.M. Dent, C. Randerson, Korean Foreign direct Investment in Europe: The Determining Forces. Pacific Review, 9, 4, 531-532 (1996).
Y. Kimura, H. K. Lee, Korean Direct Investment in Manufacturing: Its Patterns and Determinants: An Empirical Analysis. Journal of International Management, 4, 2, 109-127 (1998).
H. Chen, T-J. Chen, Network Linkages and Location Choice in Foreign Direct Investment. Journal of International Business Studies, 29, 3, 445-468 (1998).
S. Makino, C-M. Lau, R-S. Yeh, Asset-Exploitation versus Asset-Seeking: Implications for Location Choice of Foreign Direct Investment from Newly Industrialized Economies. Journal of International Business Studies, 33, 3, 403 – 421 (2002).
M.Y. Wang, The Motivations behind China’s Government-Initialed Industrial Overseas. Pacific Affairs, 75, 2, 187-206 (2002).
United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2006: FDI from Developing and Transition Economies: Implications for Development, United Nations Publication, New York and Geneva, 2006.
H. Kaya, Internationalization of Turkish Manufacturing Firms: Foreign Direct Investment Outflow, Unpublished PhD Thesis, Institute of Social Sciences, Bogazici University, Istanbul, 2004.
E. Akçaoglu, Turk Firmalarinin Dis Yatirimlari: Saikler ve Stratejiler (Foreign Direct Investment by Turkish Firms: Motivations and Strategies) Ankara:Türkiye Bankalar Birliği (The Bankers’ Association of Turkey), 2005.
H. Kaya, D. Erden, Assessing the Performance of Foreign Equity Ventures: The Case of Turkish Manufacturing FDI Firms. Journal of Euromarketing, 16, 4, 49–63 (2007)
H. Kaya, D. Erden, Firm-specific Capabilities and Foreign Direct Investment Activities of Turkish Manufacturing Firms: An Empirical Study. Journal of Management Development, 27, 7, 761-777 (2008).
M. Demirbag, E. Tatoglu, K. W. Glaister, Equity-based Entry Modes of Emerging Country Multinationals: Lessons from Turkey. Journal of World Business, 44, 4, 445-462 (2009).
A. Erdilek, Direct Foreign Investment in Turkish Manufacturing, J.C.B. Mohr, Tubingen, 1982.
D. Erden, Impact of MNCs on Host Countries: Executive Training Programs. Management International Review, 28, 3, 39-37 (1988).
D. Erden, A survey of Foreign Direct Investment Firms in Turkey, Boğaziçi University Press, Istanbul, 1996.
M. Bodur, T. K. Madsen, Danish Foreign Direct Investments in Turkey, European Business Review, 93, 5, 28-43 (1993).
M. Bodur, G. Alpay, G. Asugman, “Managerial Perceptions on Performance Determinants of Multinational Companies in an Emerging Economy”, in A. Yaprak, H. Tutek (Ed.), Globalization, The Multinational Firm, and Emerging Economies, (A special issue of Advances in International Marketing, 10, 131-162 (2001).
M. Demirbag, H. Mirza, D.T.H. Weir, The Dynamics of Manufacturing Joint Ventures in Turkey and the Role of Industrial Groups. Management International Review, 35, Special Issue, 35-51 (1995).
M. Demirbag, H. Mirza, Factors Affecting International Joint Venture Success: An Empirical Analysis of Foreign-Local Partner Relationships and Performance in Joint Ventures in Turkey. International Business Review, 9, 1-35 (2000).
E. Tatoglu, K.W. Glaister, Dimensions of Western Foreign Direct Investment in Turkey, Quorum Books, Westport, 2000.
S.T. Ok, What Drives Foreign Direct Investment into Emerging Markets?: Evidence from Turkey. Emerging Markets Finance and Trade, 40, 4, 101- 114 (2004).
I. Günaydın, E. Tatoglu, Does Foreign Direct Investment Promote Economic Growth: Evidence from Turkey. Multinational Business Review, 13, 2, 89-106 (2005).
M. Demirbag, K. W. Glaister, E. Tatoglu, Institutional and Transaction Cost Influences on MNEs’ Ownership Strategies of Their Affiliates: Evidence from an Emerging Market. Journal of World Business, 42, 418-434 (2007).
İ. Anıl, Türkiye’den Gelişmekte Olan Ülkelere Yapılan Doğrudan Sermaye Yatırımları (Foreign Direct Investment from Turkey to Developing Countries), Marmara Üniversitesi İktisadi ve İdari Bilimler Fakültesi Araştırma Raporu (Marmara University Faculty of Economics and Administrative Sciences, Research Report), 2006.
D. Chudnovsky, L. Andres, A Third Wave of FDI from Developing Countries: Latin American TNCs in the 1990s. Transnational Corporations, 9, 2, 31-73(2000).
D.A. Heenan, W.J. Keegan, The Rise of Third World Multinationals. Harvard Business Review, 57(Jan-Feb), 101–109 (1979).
K.I. Ghymn, Multinational Enterprises from the Third World. Journal of International Business Studies, 11,118–122 (1980).
K. Kumar, Third World Multinationals: A Growing Force in International Relations. International Studies Quarterly, 26, 3, 397–424 (1982).
S. Lall, The New Multinationals: The Spread of Third World Enterprises. Wiley, New York, 1983b.
K. Kumar, M.G. McLeod, Multinationals from Developing Countries, Lexington Books, Lexington, 1981.
J.P. Agarwal, Intra-LDCs Foreign Direct Investment: A comparative Analysis of Third World Multinationals. Developing Economies, XXIII, 3, 236-53 (1985).
R. Lall, Third World Multinationals: The Characteristics of Indian Firms Investing Abroad. Journal of Development Economics, 20, 381–397 (1986).
K.M. Khan, Multinationals of the South: New Actors in the International Economy, Pinter, London, 1986.
H. Vernon-Wortzel, L.H. Wortzel Globalizing Strategies for Multinationals from Developing Countries. Columbia Journal of World Business, Spring, 27–35 (1988).
R. Aggarwal, T. Agmon, The International Success of Developing Country Firms: Role of Government-Directed Comparative Advantage. Management International Review, 30, 163–180 (1990).
S.B. Tallman, O. Shenkar, International Cooperative Venture Strategies: Outward Investment and Small Firms from NICs’. Management International Review, 30, 4, 299-315 (1990).
M.J. Ferrantino, Transaction Costs and the Expansion of Third-World Multinationals. Economic Letters, 38, 451-456 (1992).
P.E. Tolentino, Technological Innovation and Third World Multinationals. Routledge, London, 1993.
F.M. Ulgado, C.J. Yu, A.R. Negandhi, Multinational Enterprises from Asian Developing Countries: Management and Organizational Characteristics. International Business Review, 3, 123–133 (1994).
H.W-C. Yeung, Transnational Corporations from Asian Developing Countries: Their Characteristics and Competitive Edge. Journal of Asian Business, 10, 4, 17-58 (1994).
R. Van Hoesel, New Multinational Enterprises from Korea and Taiwan: Beyond Export-led Growth. Routledge, London, 1999.
J.A. Mathews, Dragon Multinational, Oxford University Press, New York, 2002.
F. Beausang, Third World Multinationals: Engine of Competitiveness or New Form of Dependency?, Palgrave Macmillan, Basingstoke. 2003.
G. Benito, R. Narula, Multinationals on the Periphery, Palgrave Macmillan, London, 2007.
A. Goldstein, T. M. Shaw, Multinational Companies from Emerging Economies: Composition, Conceptualization and Direction in the Global Economy, Palgrave Macmillan, London, 2007.
D.S. Elenkov, Russian Aerospace MNCs in Global Competition: Their Origin, Competitive Strength and Forms of Multinational Expansion. Columbia Journal of World Business, 30, 2, Summer, 66-78 (1995).
S. Young, C. Huang, H. McDermott, Internationalization and Competitive Catch-Up Processes: Case Study Evidence on Chinese Multinational Enterprises. Management International Review, 36, 295–314(1996).
A. B. Sim, R. Pandian, Internationalization Strategies of Emerging Asian MNEs: Case Study Evidence on Taiwanese Firms. Journal of Asian Business, 18, 1, 67–80 (2002).
E.W.K. Tsang, Learning from Overseas Venturing Experience: The Case of Chinese Family Business. Journal of Business Venturing, 17, 1, 21–40 (2002).
Y. Luo, Market-Seeking MNEs in an Emerging Market: How Parent–Subsidiary Links Shape Overseas Success. Journal of International Business Studies, 34, 3, 290–309 (2003).
P. Deng, Outward Investment by Chinese MNCs Motivations and Implications. Business Horizons, 47, 3, 8–16 (2004).
K. Kalotay, Outward FDI from Central and Eastern European Countries. Economics of Planning, 37, 2, 141–172 (2004).
J. Child, S.B. Rodrigues, The internationalization of Chinese Firms: A Case for Theoretical Extension? Management and Organization Review, 1, 3, 381–410 (2005).
J.A. Mathews, Dragon Multinationals: New Players in 21st Century Globalization. Asia Pacific Journal of Management, 23, 5–27 (2006).
P.J. Buckley, L.J. Clegg, A.R. Cross, X. Liu, H. Voss, P. Zheng, The determinants of Chinese outward Foreign Direct Investment, Journal of International Business Studies, 38, 499–518 (2007).
M.R. Czinkota, I.A. Ronkainen, M. H. Moffett, International Business, Fourth Edition, The Dryden Press, NY, 1996.
D. Sethi, S. Guisinger, S. Phelan, and D. Berg, Trends in Foreign Direct Investment Flows: A Theoretical and Empirical Analysis. Journal of International Business Studies, 34, 315-326 (2003).
D.W. Loree, S.E. Guisinger, Policy and Non-Policy Determinants of U.S. Equity Foreign Direct Investment. Journal of International Business Studies, Second Quarter, 281-299 (1995).
J.H. Dunning, Location and Multinational Enterprise: A Neglected Factor? Journal of International Business Studies, 29, 1, 45-66 (1998).
J.H. Dunning, The Eclectic Paradigm as an Envelope for Economic and Business Theories of MNE Activity. International Business Review, 9, 163-190 (2000).
United Nations Conference on Trade and Development (UNCTAD), World Investment Report 1998: Trends and Determinants. An Overview, United Nations Publication, New York and Geneva, 1998.
K.W. Jun, H. Singh, The Determinants of Foreign Direct Investment: New Empirical Evidence. Transnational Corporations, 5, 2, 67-105 (1996).
S. Ali, Market Entry, Motives and Performance in Central Europe: The Case of British Firms. Journal of East-West Business, 3, 2, 63-82 (1997).
J.R. Markusen, The Boundaries of Multinational Enterprises and the Theory of International Trade. The Journal of Economic Perspectives, 9, 2, 169-189 (1995).
J. Mata, P. Portugal, The Survival of New Domestic and Foreign-Owned Firms. Strategic Management Journal, 23, 4, 323–343 (2002).
A. Shama, Determinants of Entry Strategies of U.S Companies Into Russia, the Czech Republic, Hungary, Poland, and Romania. Thunderbird International Business Review, 42, 6, 651-676 (2000).
I. Hashi, J. Mladek, Fiscal and Regulatory Impediments to the Entry of New Firms in Five Transition Economies. Journal of East-West Business, 6, 2, 59-95 (2000).
V. Gaba, Y. Pan, G.R. Ungson, Timing of Entry in International Market: An Empirical Study of U.S. Fortune 500 Firms in China. Journal of International Business Studies, 33, 1, 39-55 (2002).
S.H. Hymer, The International Operations of National Firms: A Study of Direct Foreign Investment, Doctoral Dissertation, Massachusetts Institute of Technology (published by MIT Press, Cambridge, MA in 1976), 1960.
T. Horst, Firm and Industry Determinants of the Decision to Invest Abroad: An Empirical Study. The Review of Economics and Statistics, 54, 3, 258-266 (1972).
S.G. Grubaugh, Determinants of Direct Foreign Investment. Review of Economics and Statistics, 149-152 (1987).
V. Terpstra, C-M. Yu, Determinant of Foreign Direct Investment of U.S. Advertising Agencies. Journal of International Business Studies, 33-47 (1988).
Y. Kimura, Firm-Specific Strategic Advantages and Foreign Direct Investment Behavior of Japanese Firms: The Case of Japanese Semiconductor Firms. Journal of International Business Studies, Summer (1989).
J. Li, S. Guisinger, The Globalization of Service Multinationals in the “Triad” Regions: Japan, Western Europe and North America. Journal of International Business Studies, Fourth Quarter, 675-696 (1992).
B. Tan, I. Vertinsky, Foreign Direct Investment by Japanese Electronics Firms in the United Canada: Modeling the Timing of Entry. Journal of International Business Studies, 27, 4 (1996).
S. Urata, H. Kawai, The Determinants of the Location of Foreign Direct Investment by Japanese Small and Medium-Sized Enterprises. Small Business Economics, 15 (2), 79-103 (2000).
R.N. Sanyal, T. Guvenli, Relations Between Multinational Firms and Host Governments: the Experience of American-Owned Firms in China. International Business Review, 9, 119-134 (2000).
A. Delios, P. W. Beamish, Ownership Strategy of Japanese Firms: Transactional, Institutional, and Experience Influences. Strategic Management Journal, 20, 915- 933 (1999).
H.H. Aswicahyono, H. Hill, Determinants of Foreign Ownership in LCD Manufacturing: an Indonesian Case Study. Journal of International Business Studies, First Quarter, 139-158 (1995).
A.S. Hyder, Differences Between Developed and Developing Country Joint Ventures-A Reality or a Myth? International Business Review, 8, 441-461 (1999).
S. Makino, P.W. Beamish N.B. Zhao, The Characteristics and Performance of Japanese FDI in Less Developed and Developing Countries, Journal of World Business, 39, 4, 377-392 (2004).
W.R. Scott, Institutions and Organizations, Sage, Thousand Oaks, 1995.
D. North, Institutions, Institutional Change and Economic Performance, Cambridge University Press, New York, 1990.
E. Anderson, H. Gatignon, Modes of Foreign Entry: A Transaction Cost Analysis and Propositions. Journal of International Business Studies, 11, Fall, 1-26 (1986).
B. Kogut, H. Singh, The Effect of National Culture on the Choice of Entry Mode. Journal of International Business Studies, 19, Fall, 411-432 (1988).
J-F. Hennart, The Transaction Costs Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States, Management Science, 37, 4, 483- 497 (1991).
M.K. Erramili, Service Firms’ International Entry-Mode Choice: A Modified Transaction-Cost Analysis Approach. Journal of Marketing, 57, 3, 19-38 (1993).
P.J. Buckley, M. Casson, Analyzing Foreign Entry Strategies: Extending the Internalization Approach. Journal of International Business Studies, 29, 3, 539- 562 (1998).
C.W.L. Hill, P. Hwang, W.C. Kim, An Eclectic Theory of the Choice of International Entry Modes. Strategic Management Journal, 11, 117-128 (1990).
S. Agarwal, S.N. Ramaswami, Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internationalization Factors. Journal of International Business Studies, 23, 1, 1-27 (1992).
L.E. Brouthers, K.D. Brouthers, S. Werner, Is Dunning’s Eclectic Framework Descriptive or Normative? Journal of International Business Studies, 30, 4, 831- 844 (1999).
J.H. Dunning, The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions. Journal of International Business Studies, 191-31 (1988).
W.H. Hoffmann, W. Schaper-Rinkel, Acquire or Ally - A Strategy Framework for Deciding Between Acquisition and Cooperation. Management International Review, 41, 131-159 (2001).
J-F. Hennart, S. Reddy, The Choice Between Mergers/Acquisitions and Joint Ventures: Thee Case of Japanese Investors in the United States. Strategic Management Journal, 18, 1-12 (1997).
J.F. Hair, R.E. Anderson, R.L. Tatham, W.C. Black, Multivariate Data Analysis With Readings. Fifth Edition, Printice Hall International, Upper Saddle River, New Jersey, 1998.
S. Werner, L.E. Brouthers, K.D. Brouthers, International Risk and Perceived Environmental Uncertainty: The Dimensionality and Internal Consistency of Miller’s Measure. Journal of International Business Studies, Third Quarter, 571- 585 (1996).
K.R. Robertson, V.R. Wood, The Relative Importance of Types of Information in the Foreign Market Selection Process. International Business Review, 10, 363-379 (2001).
R.T. Green, W.H. Cunningham, The Determinants of U.S. Foreign Investment: An Empirical Examination. Management International Review, 15, 2-3, 113-120 (1975).
R. Grosse, L.J. Trevino, Foreign Direct Investment in the United States: An Analysis by Country of Origin. Journal of International Business Studies, First Quarter, 139-155 (1996).
D. Nigh, The Effect of Political Events on United States Direct Foreign Investment: A Pooled Time-Series Cross-Sectional Analysis. Journal of International Business Studies, Spring, 1-17 (1985).
S.J. Kobrin, The Environmental Determinants of Foreign Direct Manufacturing Investment: An Ex Post Empirical Analysis. Journal of International Business Studies, 7, 2, 29-42 (1976).
D.P. Woodward, R.J. Rolfe, The Location of Export-Oriented Foreign Direct Investment in the Carribbean Basin. Journal of International Business Studies, First Quarter, 121-144 (1993).

-

Year 2014, Volume: 43 Issue: 2, 368 - 390, 14.11.2014

Harun Kaya

Abstract

Bu makalenin amacı Türk imalat sektörü firmalarının (TİSF) doğrudan yurtdışı yatırımı yapmalarının ardındaki saikleri geniş kapsamlı veri ve görüşlerden yararlanarak belirlemek ve değerlendirmektir. Makalede geçmişteki araştırmalara bağlı olarak firma özellikleri ve güdüleri ile ilgili hipotezler geliştirilmiştir. Araştırmada 94 imalat firması yöneticisinin anketlere verdikleri yanıtların analiz edilmesinden şu sonuçlara ulaşılmıştır: 1) Piyasa ile ilgili saikler (pazar potansiyeli, piyasaya erişme, vb.) yurtdışında yatırımla ilgili en önemli güdü olarak karşımıza çıkmaktadır; 2) TİSF’nın saiklerinin göreceli önemi ana firmanın yaşına göre değişmemekte; ancak, bir dereceye kadar, yurtdışında kurulan firmanın yaşına göre farklılaşmaktadır; 3) TİSF’nın stratejik güdüleri bir dereceye kadar ana firmanın ve yurtdışında kurulan firmanın büyüklüğüne göre değişmektedir; 4) TİSF’nın stratejik güdüleri firmaların bulunduğu alt sektöre ve yurtdışına giriş biçiminde göre farklılaşmamaktadır; 5) Uygun iş/faaliyet ortamı arama ve stratejik kaynak elde etme güdüleriyle gelişmiş ülkelere yatırım yapmaları arsında önemli bir ilişki olduğu ortaya çıkmaktadır; buna ilave olarak, kültürel değerleri kullanma ve verimlilik elde etme saikleriyle gelişmekte olan ülkelere yatırım yapmaları arsında da önemli bir ilişki olduğu belirlenmiştir

Keywords

Doğrudan Yurtdışı Yatırım (DYY), Stratejik DYY Saikleri, Gelişmekte

References

D.E. Thomas, R Grosse, Country-of-Origin Determinants of Foreign Direct Investment in an Emerging Market: The Case of Mexico. Journal of International Management, 7, 59-79 (2001).
K.C. Mellahi, J. G. Frynas, H. Al-Bortmani, Motives for Foreign Direct Investment in Oman. Thunderbird International Business Review, 45, 4, 431-446 (2003).
P. Walkenhorst, Economic Transition and the Sectoral Patterns of Foreign Direct Investment. Emerging Markets Finance and Trade, 40, 2, 5–26 (2004).
S.K. Bhaumik, S. Gelb, Determinants of Entry Mode Choice of MNCs in Emerging Markets: Evidence from South Africa and Egypt. Emerging Markets Finance and Trade, 41, 2, 5-24 (2005).
R. Tahir, J. Larimo, Strategic Motivations of Finnish FDIs in Asian Countries. Cross Cultural Management: An International Journal, 13, 3, 244-256 (2006).
D. Quer, E. Claver, Determinants of Spanish Foreign Direct Investment in Morocco. Emerging Markets Finance and Trade, 43, 2, 19-32 (2007).
D. Lecraw, Direct Investment by Firms from Less Developed Countries. Oxford Economic Papers, 29, 3, 442-457 (1977).
L.T. Wells, “The Internationalization of Firms from Developing Countries”, in A. Tamir, C. P. Kindleberger (Ed.), Multinationals from Small Countries, MIT Press, Cambridge, 1977.
L.T. Wells, Third World Multinationals, MIT Press, Cambridge, 1983.
S. Lall, The Emergence of Third World Multinationals: Indian Joint Ventures Overseas. World Development, 10, 2, 127-146 (1982).
S. Lall, The Rise of Multinationals from the Third World. Third World Quarterly, 5, 3, 618-26 (1983).
K. Kumar, K.Y. Kim, The Korean Manufacturing Multinationals. Journal of International Business Studies, Spring/Summer, 45-60 (1984).
D.J. Lecraw, Outward Direct Investment by Indonesian Firms: Motivation and Effects. Journal of International Business Studies, Third Quarter, 589-600 (1993).
[C.M. Dent, C. Randerson, Korean Foreign direct Investment in Europe: The Determining Forces. Pacific Review, 9, 4, 531-532 (1996).
Y. Kimura, H. K. Lee, Korean Direct Investment in Manufacturing: Its Patterns and Determinants: An Empirical Analysis. Journal of International Management, 4, 2, 109-127 (1998).
H. Chen, T-J. Chen, Network Linkages and Location Choice in Foreign Direct Investment. Journal of International Business Studies, 29, 3, 445-468 (1998).
S. Makino, C-M. Lau, R-S. Yeh, Asset-Exploitation versus Asset-Seeking: Implications for Location Choice of Foreign Direct Investment from Newly Industrialized Economies. Journal of International Business Studies, 33, 3, 403 – 421 (2002).
M.Y. Wang, The Motivations behind China’s Government-Initialed Industrial Overseas. Pacific Affairs, 75, 2, 187-206 (2002).
United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2006: FDI from Developing and Transition Economies: Implications for Development, United Nations Publication, New York and Geneva, 2006.
H. Kaya, Internationalization of Turkish Manufacturing Firms: Foreign Direct Investment Outflow, Unpublished PhD Thesis, Institute of Social Sciences, Bogazici University, Istanbul, 2004.
E. Akçaoglu, Turk Firmalarinin Dis Yatirimlari: Saikler ve Stratejiler (Foreign Direct Investment by Turkish Firms: Motivations and Strategies) Ankara:Türkiye Bankalar Birliği (The Bankers’ Association of Turkey), 2005.
H. Kaya, D. Erden, Assessing the Performance of Foreign Equity Ventures: The Case of Turkish Manufacturing FDI Firms. Journal of Euromarketing, 16, 4, 49–63 (2007)
H. Kaya, D. Erden, Firm-specific Capabilities and Foreign Direct Investment Activities of Turkish Manufacturing Firms: An Empirical Study. Journal of Management Development, 27, 7, 761-777 (2008).
M. Demirbag, E. Tatoglu, K. W. Glaister, Equity-based Entry Modes of Emerging Country Multinationals: Lessons from Turkey. Journal of World Business, 44, 4, 445-462 (2009).
A. Erdilek, Direct Foreign Investment in Turkish Manufacturing, J.C.B. Mohr, Tubingen, 1982.
D. Erden, Impact of MNCs on Host Countries: Executive Training Programs. Management International Review, 28, 3, 39-37 (1988).
D. Erden, A survey of Foreign Direct Investment Firms in Turkey, Boğaziçi University Press, Istanbul, 1996.
M. Bodur, T. K. Madsen, Danish Foreign Direct Investments in Turkey, European Business Review, 93, 5, 28-43 (1993).
M. Bodur, G. Alpay, G. Asugman, “Managerial Perceptions on Performance Determinants of Multinational Companies in an Emerging Economy”, in A. Yaprak, H. Tutek (Ed.), Globalization, The Multinational Firm, and Emerging Economies, (A special issue of Advances in International Marketing, 10, 131-162 (2001).
M. Demirbag, H. Mirza, D.T.H. Weir, The Dynamics of Manufacturing Joint Ventures in Turkey and the Role of Industrial Groups. Management International Review, 35, Special Issue, 35-51 (1995).
M. Demirbag, H. Mirza, Factors Affecting International Joint Venture Success: An Empirical Analysis of Foreign-Local Partner Relationships and Performance in Joint Ventures in Turkey. International Business Review, 9, 1-35 (2000).
E. Tatoglu, K.W. Glaister, Dimensions of Western Foreign Direct Investment in Turkey, Quorum Books, Westport, 2000.
S.T. Ok, What Drives Foreign Direct Investment into Emerging Markets?: Evidence from Turkey. Emerging Markets Finance and Trade, 40, 4, 101- 114 (2004).
I. Günaydın, E. Tatoglu, Does Foreign Direct Investment Promote Economic Growth: Evidence from Turkey. Multinational Business Review, 13, 2, 89-106 (2005).
M. Demirbag, K. W. Glaister, E. Tatoglu, Institutional and Transaction Cost Influences on MNEs’ Ownership Strategies of Their Affiliates: Evidence from an Emerging Market. Journal of World Business, 42, 418-434 (2007).
İ. Anıl, Türkiye’den Gelişmekte Olan Ülkelere Yapılan Doğrudan Sermaye Yatırımları (Foreign Direct Investment from Turkey to Developing Countries), Marmara Üniversitesi İktisadi ve İdari Bilimler Fakültesi Araştırma Raporu (Marmara University Faculty of Economics and Administrative Sciences, Research Report), 2006.
D. Chudnovsky, L. Andres, A Third Wave of FDI from Developing Countries: Latin American TNCs in the 1990s. Transnational Corporations, 9, 2, 31-73(2000).
D.A. Heenan, W.J. Keegan, The Rise of Third World Multinationals. Harvard Business Review, 57(Jan-Feb), 101–109 (1979).
K.I. Ghymn, Multinational Enterprises from the Third World. Journal of International Business Studies, 11,118–122 (1980).
K. Kumar, Third World Multinationals: A Growing Force in International Relations. International Studies Quarterly, 26, 3, 397–424 (1982).
S. Lall, The New Multinationals: The Spread of Third World Enterprises. Wiley, New York, 1983b.
K. Kumar, M.G. McLeod, Multinationals from Developing Countries, Lexington Books, Lexington, 1981.
J.P. Agarwal, Intra-LDCs Foreign Direct Investment: A comparative Analysis of Third World Multinationals. Developing Economies, XXIII, 3, 236-53 (1985).
R. Lall, Third World Multinationals: The Characteristics of Indian Firms Investing Abroad. Journal of Development Economics, 20, 381–397 (1986).
K.M. Khan, Multinationals of the South: New Actors in the International Economy, Pinter, London, 1986.
H. Vernon-Wortzel, L.H. Wortzel Globalizing Strategies for Multinationals from Developing Countries. Columbia Journal of World Business, Spring, 27–35 (1988).
R. Aggarwal, T. Agmon, The International Success of Developing Country Firms: Role of Government-Directed Comparative Advantage. Management International Review, 30, 163–180 (1990).
S.B. Tallman, O. Shenkar, International Cooperative Venture Strategies: Outward Investment and Small Firms from NICs’. Management International Review, 30, 4, 299-315 (1990).
M.J. Ferrantino, Transaction Costs and the Expansion of Third-World Multinationals. Economic Letters, 38, 451-456 (1992).
P.E. Tolentino, Technological Innovation and Third World Multinationals. Routledge, London, 1993.
F.M. Ulgado, C.J. Yu, A.R. Negandhi, Multinational Enterprises from Asian Developing Countries: Management and Organizational Characteristics. International Business Review, 3, 123–133 (1994).
H.W-C. Yeung, Transnational Corporations from Asian Developing Countries: Their Characteristics and Competitive Edge. Journal of Asian Business, 10, 4, 17-58 (1994).
R. Van Hoesel, New Multinational Enterprises from Korea and Taiwan: Beyond Export-led Growth. Routledge, London, 1999.
J.A. Mathews, Dragon Multinational, Oxford University Press, New York, 2002.
F. Beausang, Third World Multinationals: Engine of Competitiveness or New Form of Dependency?, Palgrave Macmillan, Basingstoke. 2003.
G. Benito, R. Narula, Multinationals on the Periphery, Palgrave Macmillan, London, 2007.
A. Goldstein, T. M. Shaw, Multinational Companies from Emerging Economies: Composition, Conceptualization and Direction in the Global Economy, Palgrave Macmillan, London, 2007.
D.S. Elenkov, Russian Aerospace MNCs in Global Competition: Their Origin, Competitive Strength and Forms of Multinational Expansion. Columbia Journal of World Business, 30, 2, Summer, 66-78 (1995).
S. Young, C. Huang, H. McDermott, Internationalization and Competitive Catch-Up Processes: Case Study Evidence on Chinese Multinational Enterprises. Management International Review, 36, 295–314(1996).
A. B. Sim, R. Pandian, Internationalization Strategies of Emerging Asian MNEs: Case Study Evidence on Taiwanese Firms. Journal of Asian Business, 18, 1, 67–80 (2002).
E.W.K. Tsang, Learning from Overseas Venturing Experience: The Case of Chinese Family Business. Journal of Business Venturing, 17, 1, 21–40 (2002).
Y. Luo, Market-Seeking MNEs in an Emerging Market: How Parent–Subsidiary Links Shape Overseas Success. Journal of International Business Studies, 34, 3, 290–309 (2003).
P. Deng, Outward Investment by Chinese MNCs Motivations and Implications. Business Horizons, 47, 3, 8–16 (2004).
K. Kalotay, Outward FDI from Central and Eastern European Countries. Economics of Planning, 37, 2, 141–172 (2004).
J. Child, S.B. Rodrigues, The internationalization of Chinese Firms: A Case for Theoretical Extension? Management and Organization Review, 1, 3, 381–410 (2005).
J.A. Mathews, Dragon Multinationals: New Players in 21st Century Globalization. Asia Pacific Journal of Management, 23, 5–27 (2006).
P.J. Buckley, L.J. Clegg, A.R. Cross, X. Liu, H. Voss, P. Zheng, The determinants of Chinese outward Foreign Direct Investment, Journal of International Business Studies, 38, 499–518 (2007).
M.R. Czinkota, I.A. Ronkainen, M. H. Moffett, International Business, Fourth Edition, The Dryden Press, NY, 1996.
D. Sethi, S. Guisinger, S. Phelan, and D. Berg, Trends in Foreign Direct Investment Flows: A Theoretical and Empirical Analysis. Journal of International Business Studies, 34, 315-326 (2003).
D.W. Loree, S.E. Guisinger, Policy and Non-Policy Determinants of U.S. Equity Foreign Direct Investment. Journal of International Business Studies, Second Quarter, 281-299 (1995).
J.H. Dunning, Location and Multinational Enterprise: A Neglected Factor? Journal of International Business Studies, 29, 1, 45-66 (1998).
J.H. Dunning, The Eclectic Paradigm as an Envelope for Economic and Business Theories of MNE Activity. International Business Review, 9, 163-190 (2000).
United Nations Conference on Trade and Development (UNCTAD), World Investment Report 1998: Trends and Determinants. An Overview, United Nations Publication, New York and Geneva, 1998.
K.W. Jun, H. Singh, The Determinants of Foreign Direct Investment: New Empirical Evidence. Transnational Corporations, 5, 2, 67-105 (1996).
S. Ali, Market Entry, Motives and Performance in Central Europe: The Case of British Firms. Journal of East-West Business, 3, 2, 63-82 (1997).
J.R. Markusen, The Boundaries of Multinational Enterprises and the Theory of International Trade. The Journal of Economic Perspectives, 9, 2, 169-189 (1995).
J. Mata, P. Portugal, The Survival of New Domestic and Foreign-Owned Firms. Strategic Management Journal, 23, 4, 323–343 (2002).
A. Shama, Determinants of Entry Strategies of U.S Companies Into Russia, the Czech Republic, Hungary, Poland, and Romania. Thunderbird International Business Review, 42, 6, 651-676 (2000).
I. Hashi, J. Mladek, Fiscal and Regulatory Impediments to the Entry of New Firms in Five Transition Economies. Journal of East-West Business, 6, 2, 59-95 (2000).
V. Gaba, Y. Pan, G.R. Ungson, Timing of Entry in International Market: An Empirical Study of U.S. Fortune 500 Firms in China. Journal of International Business Studies, 33, 1, 39-55 (2002).
S.H. Hymer, The International Operations of National Firms: A Study of Direct Foreign Investment, Doctoral Dissertation, Massachusetts Institute of Technology (published by MIT Press, Cambridge, MA in 1976), 1960.
T. Horst, Firm and Industry Determinants of the Decision to Invest Abroad: An Empirical Study. The Review of Economics and Statistics, 54, 3, 258-266 (1972).
S.G. Grubaugh, Determinants of Direct Foreign Investment. Review of Economics and Statistics, 149-152 (1987).
V. Terpstra, C-M. Yu, Determinant of Foreign Direct Investment of U.S. Advertising Agencies. Journal of International Business Studies, 33-47 (1988).
Y. Kimura, Firm-Specific Strategic Advantages and Foreign Direct Investment Behavior of Japanese Firms: The Case of Japanese Semiconductor Firms. Journal of International Business Studies, Summer (1989).
J. Li, S. Guisinger, The Globalization of Service Multinationals in the “Triad” Regions: Japan, Western Europe and North America. Journal of International Business Studies, Fourth Quarter, 675-696 (1992).
B. Tan, I. Vertinsky, Foreign Direct Investment by Japanese Electronics Firms in the United Canada: Modeling the Timing of Entry. Journal of International Business Studies, 27, 4 (1996).
S. Urata, H. Kawai, The Determinants of the Location of Foreign Direct Investment by Japanese Small and Medium-Sized Enterprises. Small Business Economics, 15 (2), 79-103 (2000).
R.N. Sanyal, T. Guvenli, Relations Between Multinational Firms and Host Governments: the Experience of American-Owned Firms in China. International Business Review, 9, 119-134 (2000).
A. Delios, P. W. Beamish, Ownership Strategy of Japanese Firms: Transactional, Institutional, and Experience Influences. Strategic Management Journal, 20, 915- 933 (1999).
H.H. Aswicahyono, H. Hill, Determinants of Foreign Ownership in LCD Manufacturing: an Indonesian Case Study. Journal of International Business Studies, First Quarter, 139-158 (1995).
A.S. Hyder, Differences Between Developed and Developing Country Joint Ventures-A Reality or a Myth? International Business Review, 8, 441-461 (1999).
S. Makino, P.W. Beamish N.B. Zhao, The Characteristics and Performance of Japanese FDI in Less Developed and Developing Countries, Journal of World Business, 39, 4, 377-392 (2004).
W.R. Scott, Institutions and Organizations, Sage, Thousand Oaks, 1995.
D. North, Institutions, Institutional Change and Economic Performance, Cambridge University Press, New York, 1990.
E. Anderson, H. Gatignon, Modes of Foreign Entry: A Transaction Cost Analysis and Propositions. Journal of International Business Studies, 11, Fall, 1-26 (1986).
B. Kogut, H. Singh, The Effect of National Culture on the Choice of Entry Mode. Journal of International Business Studies, 19, Fall, 411-432 (1988).
J-F. Hennart, The Transaction Costs Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States, Management Science, 37, 4, 483- 497 (1991).
M.K. Erramili, Service Firms’ International Entry-Mode Choice: A Modified Transaction-Cost Analysis Approach. Journal of Marketing, 57, 3, 19-38 (1993).
P.J. Buckley, M. Casson, Analyzing Foreign Entry Strategies: Extending the Internalization Approach. Journal of International Business Studies, 29, 3, 539- 562 (1998).
C.W.L. Hill, P. Hwang, W.C. Kim, An Eclectic Theory of the Choice of International Entry Modes. Strategic Management Journal, 11, 117-128 (1990).
S. Agarwal, S.N. Ramaswami, Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internationalization Factors. Journal of International Business Studies, 23, 1, 1-27 (1992).
L.E. Brouthers, K.D. Brouthers, S. Werner, Is Dunning’s Eclectic Framework Descriptive or Normative? Journal of International Business Studies, 30, 4, 831- 844 (1999).
J.H. Dunning, The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions. Journal of International Business Studies, 191-31 (1988).
W.H. Hoffmann, W. Schaper-Rinkel, Acquire or Ally - A Strategy Framework for Deciding Between Acquisition and Cooperation. Management International Review, 41, 131-159 (2001).
J-F. Hennart, S. Reddy, The Choice Between Mergers/Acquisitions and Joint Ventures: Thee Case of Japanese Investors in the United States. Strategic Management Journal, 18, 1-12 (1997).
J.F. Hair, R.E. Anderson, R.L. Tatham, W.C. Black, Multivariate Data Analysis With Readings. Fifth Edition, Printice Hall International, Upper Saddle River, New Jersey, 1998.
S. Werner, L.E. Brouthers, K.D. Brouthers, International Risk and Perceived Environmental Uncertainty: The Dimensionality and Internal Consistency of Miller’s Measure. Journal of International Business Studies, Third Quarter, 571- 585 (1996).
K.R. Robertson, V.R. Wood, The Relative Importance of Types of Information in the Foreign Market Selection Process. International Business Review, 10, 363-379 (2001).
R.T. Green, W.H. Cunningham, The Determinants of U.S. Foreign Investment: An Empirical Examination. Management International Review, 15, 2-3, 113-120 (1975).
R. Grosse, L.J. Trevino, Foreign Direct Investment in the United States: An Analysis by Country of Origin. Journal of International Business Studies, First Quarter, 139-155 (1996).
D. Nigh, The Effect of Political Events on United States Direct Foreign Investment: A Pooled Time-Series Cross-Sectional Analysis. Journal of International Business Studies, Spring, 1-17 (1985).
S.J. Kobrin, The Environmental Determinants of Foreign Direct Manufacturing Investment: An Ex Post Empirical Analysis. Journal of International Business Studies, 7, 2, 29-42 (1976).
D.P. Woodward, R.J. Rolfe, The Location of Export-Oriented Foreign Direct Investment in the Carribbean Basin. Journal of International Business Studies, First Quarter, 121-144 (1993).

There are 114 citations in total.

Details

Primary Language	English
Journal Section	Management and Organization
Authors	Harun Kaya
Publication Date	November 14, 2014
Published in Issue	Year 2014 Volume: 43 Issue: 2

Cite

APA	Kaya, H. (2014). Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector. İstanbul Üniversitesi İşletme Fakültesi Dergisi, 43(2), 368-390.
AMA	Kaya H. Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector. İstanbul Üniversitesi İşletme Fakültesi Dergisi. November 2014;43(2):368-390.
Chicago	Kaya, Harun. “Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector”. İstanbul Üniversitesi İşletme Fakültesi Dergisi 43, no. 2 (November 2014): 368-90.
EndNote	Kaya H (November 1, 2014) Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector. İstanbul Üniversitesi İşletme Fakültesi Dergisi 43 2 368–390.
IEEE	H. Kaya, “Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector”, İstanbul Üniversitesi İşletme Fakültesi Dergisi, vol. 43, no. 2, pp. 368–390, 2014.
ISNAD	Kaya, Harun. “Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector”. İstanbul Üniversitesi İşletme Fakültesi Dergisi 43/2 (November 2014), 368-390.
JAMA	Kaya H. Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector. İstanbul Üniversitesi İşletme Fakültesi Dergisi. 2014;43:368–390.
MLA	Kaya, Harun. “Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector”. İstanbul Üniversitesi İşletme Fakültesi Dergisi, vol. 43, no. 2, 2014, pp. 368-90.
Vancouver	Kaya H. Strategic Motives of Turkish Foreign Direct Investment Firms: An Empirical Study on Manufacturing Sector. İstanbul Üniversitesi İşletme Fakültesi Dergisi. 2014;43(2):368-90.

Article Files

Full Text