Ownership-Based Entry Mode Strategies and Limiting Factors of Foreign Direct Investment Undertaken by Polish Enterprises

Abstract

The limiting factors of foreign direct investment (FDI) are of considerable significance to managers, governments, and scholars, as these factors directly influence the profitability of a foreign subsidiary and its parent multinational company. The aim of the paper is to present the results of research studies on the identification of FDI-limiting factors of the host country in relation to the firms’ ownership equity-based mode. It illustrates the results of a field survey involving direct interviews conducted with Polish companies as the direct investors. The research results confirmed that joint ventures might be used by Polish companies to reduce the difficulties related to the availability of resources. However, there was no strong conclusive evidence of the expected link between the higher barriers on running a business and the ownership equity-based mode.