The Internationalization Strategies of French Companies in Romania

Review of International Comparative Management, Issue 2, 2008

10 Pages Posted: 8 Jul 2008

See all articles by Nicolae Aurelian Bibu

Nicolae Aurelian Bibu

West University of Timisoara

Laura Brancu

West University of Timisoara

Date Written: July 8, 2008

Abstract

Central and Eastern European countries (CEECs) are currently attracting important flows of direct investments, after being closed to inflows of foreign capital before 1990. The governments of these countries have been multiplying measures and incentives for encouraging the presence of Multinational Companies (MNCs), during the past years. They are doing it because they consider this fact to represent an important growth vector.

This current article will be focusing on Romanian situation. Statistical data indicate that Romania has attracted less foreign investments per inhabitant compared to the other countries in the region. Therefore, the article is aiming to analyze some of the strategies that are followed by companies intending to invest in foreign countries.

We will analyze the strategic variables that have determined 62 French companies to invest and implant in Romania, based on the results of a specific survey we have conducted. The main conclusion is that the large majority of them were pursuing a "market seeking" strategy, and only a minority was pursuing a "search for resources" strategy.

Keywords: entry strategy, multinational company, Central and Eastern European countries, Romania

JEL Classification: F21, F23, M1

Suggested Citation

BIBU, Nicolae Aurelian and BRANCU, Laura, The Internationalization Strategies of French Companies in Romania (July 8, 2008). Review of International Comparative Management, Issue 2, 2008, Available at SSRN: https://ssrn.com/abstract=1157135

Nicolae Aurelian BIBU (Contact Author)

West University of Timisoara ( email )

Bd. Vasile Parvan nr.4
Timisoara 300223, Timis 330023
Romania

Laura BRANCU

West University of Timisoara ( email )

Bd. Vasile Parvan nr.4
Timisoara 300223, Timis 330023
Romania

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