Determinant metrics for a resource-seeking FDI : Case: Siili Solutions Oyj
Nättilä, Yevgeniya (2016)
Nättilä, Yevgeniya
Haaga-Helia ammattikorkeakoulu
2016
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201805117596
https://urn.fi/URN:NBN:fi:amk-201805117596
Tiivistelmä
The objective of this study is to develop a set of metrics which determine a Go/No-Go decision for a resource-seeking foreign direct investment. The metrics are validated in the context of Siili Solutions expanding its operations to Bulgaria seeking a new pool of competences.
Research has 2 propositions:
• Building “competence management” dynamic capabilities can be done in a form of a resource-seeking Foreign Direct Investment.
• Determinant metrics in a resource-seeking FDI decision are different from the overall (macroeconomics) level metrics.
The main research question is “What metrics are determinant when a multinational corporation is expanding its operations to a new location in order to get assets for competence management?” The theoretical part covers the ways of dynamic capabilities creation and the types of foreign direct investment. Main inspiration for the set of metrics is coming from the A.T. Kearney Foreign Direct Investment Confidence Index® and its FDI criteria.
This study is a constructive research with a qualitative approach. The list of metrics itself is a result of a secondary research and different global index reports analysis. The assessment of the country based on the metrics is the result of statistics collected from different sources and interviews of Siili employees. The feedback is the result of the C-level executives’ interviews.
The metrics which are relevant only for the resource seeking FDI have been identified and validated with the case country of this research, Bulgaria. The feedback indicates that the metrics list is relevant and re-usable with similar cases in the future.
Nevertheless, the following development of the metric list is needed - weight factor of each metric. Some metrics might be a showstopper for a Go decision, whilst other metrics might just be an unpleasant experience that can be either mitigated or accepted. Study has also revealed that while the metrics are relevant for a resource-seeking FDI, they are not sufficient for an FDI Go decision, but nevertheless serve a great indicator if FDI is a good step for building the competence management dynamic capability.
As a conclusion, it can be stated that author had succeeded in creation of the determinant metrics list for the case company and validated it with a case country. As a result, more transparency has been achieved in the decision making about the Siili expansion to Bulgaria and decision reasoning can be backtracked if needed.
Research has 2 propositions:
• Building “competence management” dynamic capabilities can be done in a form of a resource-seeking Foreign Direct Investment.
• Determinant metrics in a resource-seeking FDI decision are different from the overall (macroeconomics) level metrics.
The main research question is “What metrics are determinant when a multinational corporation is expanding its operations to a new location in order to get assets for competence management?” The theoretical part covers the ways of dynamic capabilities creation and the types of foreign direct investment. Main inspiration for the set of metrics is coming from the A.T. Kearney Foreign Direct Investment Confidence Index® and its FDI criteria.
This study is a constructive research with a qualitative approach. The list of metrics itself is a result of a secondary research and different global index reports analysis. The assessment of the country based on the metrics is the result of statistics collected from different sources and interviews of Siili employees. The feedback is the result of the C-level executives’ interviews.
The metrics which are relevant only for the resource seeking FDI have been identified and validated with the case country of this research, Bulgaria. The feedback indicates that the metrics list is relevant and re-usable with similar cases in the future.
Nevertheless, the following development of the metric list is needed - weight factor of each metric. Some metrics might be a showstopper for a Go decision, whilst other metrics might just be an unpleasant experience that can be either mitigated or accepted. Study has also revealed that while the metrics are relevant for a resource-seeking FDI, they are not sufficient for an FDI Go decision, but nevertheless serve a great indicator if FDI is a good step for building the competence management dynamic capability.
As a conclusion, it can be stated that author had succeeded in creation of the determinant metrics list for the case company and validated it with a case country. As a result, more transparency has been achieved in the decision making about the Siili expansion to Bulgaria and decision reasoning can be backtracked if needed.