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Foreign Direct Investment in Hungary: Resource Acquisition and Domestic Competitive Advantage

Author

Listed:
  • Graham Hooley

    (Aston Business School)

  • Tony Cox

    (Trinity College)

  • David Shipley

    (Aston Business School)

  • John Fahy

    (Trinity College)

  • Jozsef Beracs

    (Budapest University of Economic Sciences)

  • Kriztina Kolos

    (Budapest University of Economic Sciences)

Abstract

This paper examines the impact of foreign direct investment on the marketing resources and capabilities of firms in Hungary. Foreign direct investment into Hungary has been substantial in recent years and is credited as a major factor in leading the transition towards a market-led economy. While the motives of foreign investors to invest and of governments to attract investment have been extensively addressed in the literature, there has been little research on the reasons why individual host firms seek to attract investment. This paper develops a theoretical explanation of host firm motives through the resource-based theory of the firm, proposing that host firms seek resources from their investors that can then be deployed to create competitive advantage over rivals in the domestic market. A series of specific propositions are developed and tested empirically on a large sample of Hungarian enterprises.© 1996 JIBS. Journal of International Business Studies (1996) 27, 683–709

Suggested Citation

  • Graham Hooley & Tony Cox & David Shipley & John Fahy & Jozsef Beracs & Kriztina Kolos, 1996. "Foreign Direct Investment in Hungary: Resource Acquisition and Domestic Competitive Advantage," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 683-709, December.
    • Handle: RePEc:pal:jintbs:v:27:y:1996:i:4:p:683-709
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    2. Paschou, Eleni & Metaxas, Theodore, 2013. "Branding Stockholm," MPRA Paper 48118, University Library of Munich, Germany.
    3. Wu Zhan & Roger Chen & M. Erramilli & Duc Nguyen, 2009. "Acquisition of organizational capabilities and competitive advantage of IJVs in transition economies: The case of Vietnam," Asia Pacific Journal of Management, Springer, vol. 26(2), pages 285-308, June.
    4. Manuel Aníbal Silva Portugal Vasconcelos Ferreira & Nuno Rosa Reis & Fernando A. Ribeiro Serra & Benny Kramer Costa, 2014. "Understanding the Footprint of the RBV in International Business Studies: the Last Twenty Years of Research," Brazilian Business Review, Fucape Business School, vol. 11(4), pages 53-83, August.
    5. Harry G. Broadman, 2005. "From Disintegration to Reintegration : Eastern Europe and the Former Soviet Union in International Trade," World Bank Publications - Books, The World Bank Group, number 7511.
    6. Katerina Lyroudi & John Papanastasiou & Athanasios Vamvakidis, 2004. "Foreign Direct Investment And Economic Growth In Transition Economies," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 2(1), pages 97-110.
    7. Lance Eliot Brouthers & Edward O’Donnell & Dawn L. Keig, 2013. "Isomorphic Pressures, Peripheral Product Attributes and Emerging Market Firm Export Performance," Management International Review, Springer, vol. 53(5), pages 687-710, October.
    8. Fahy, John, 2002. "A resource-based analysis of sustainable competitive advantage in a global environment," International Business Review, Elsevier, vol. 11(1), pages 57-77, February.
    9. Lyroudi K. & Subeniotis D. & Georgopoulos N., 2002. "Foreign Direct Investment: The Case of Eastern Europe," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 71-90, July-Dece.
    10. Jaklič, Andreja & Obloj, Krzysztof & Svetličič, Marjan & Kronegger, Luka, 2020. "Evolution of Central and Eastern Europe related international business research," Journal of Business Research, Elsevier, vol. 108(C), pages 421-434.
    11. Seyoum, Belay, 2007. "Trade liberalization and patterns of strategic adjustment in the US textiles and clothing industry," International Business Review, Elsevier, vol. 16(1), pages 109-135, February.
    12. Ipsmiller, Edith & Dikova, Desislava, 2021. "Internationalization from Central and Eastern Europe: A systematic literature review," Journal of International Management, Elsevier, vol. 27(4).
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    14. Manuel Portugal Ferreira & Fernando A. Ribeiro Serra & Benny Kramer Costa, 2011. "The RBV in International Business Studies: A bibliometric study of Barney?s (1991) contribution to the field," Working Papers 82, globADVANTAGE, Polytechnic Institute of Leiria.
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    16. Eunmi Tatum Lee & Young-Ryeol Park & Jooyoung Kwak, 2023. "Knowledge distance and innovation performance: the moderating role of internationalization breadth and depth," Asian Business & Management, Palgrave Macmillan, vol. 22(3), pages 1131-1154, July.
    17. Klaus E Meyer, 2000. "International Production Networks and Enterprise Transformation in Central Europe," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 42(1), pages 135-150, April.
    18. Douglas E. Thomas & Lorraine Eden & Michael A. Hitt & Stewart R. Miller, 2007. "Experience of emerging market firms: The role of cognitive bias in developed market entry and survival," Management International Review, Springer, vol. 47(6), pages 845-867, December.
    19. Manuel Portugal Ferreira & Nuno Rosa Reis & Fernando Ribeiro Serra & Benny Kramer Costa, 2013. "Understanding the footprint of the RBV in International Business studies: The last twenty years of research," Working Papers 96, globADVANTAGE, Polytechnic Institute of Leiria.
    20. Gil, Adrian & Nakos, George & Brouthers, Lance Eliot & Brouthers, Keith D., 2006. "Country-specific strategy and new venture formation in Central and East Europe," International Business Review, Elsevier, vol. 15(1), pages 1-13, February.
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    22. Klaus Uhlenbruck & Klaus E. Meyer & Michael A. Hitt, 2003. "Organizational Transformation in Transition Economies: Resource‐based and Organizational Learning Perspectives," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 257-282, March.

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