The Influence of Foreign Direct Investment on Managerial Efficiency: The Case of Kleemann Hellas
Management of Innovative Business and Education Systems Transactions: International Journal, 12(1), 13-28 (2018)
16 Pages Posted: 13 May 2019
Date Written: 2018
Economic crisis lead Greek companies to struggle to survive under uncertain economic circumstances and either slow down their operations or undertake Foreign Direct Investment (FDI) to gain competitive advantage and compete in the global market. However, in order to promote FDI, companies should adjust their strategic management process and invest in management practices that will accommodate their internationalization efforts. Using a case study approach, we examine the internationalization process of a Greek manufacturing company (i.e. Kleemann Hellas S.A). In this respect, a thorough analysis is made on the strategic management process the company applies and also the Human Resource Management (HRM) practices and innovative procedures it implements in order to support FDI endeavours and enhance managerial efficiency. The study showed that through FDI, the company can gain competitive advantage, improve its profitability and achieve managerial efficiency while adjusting HRM practices and innovation to be aligned with the strategic goals.
Keywords: Foreign Direct Investment (FDI), Internationalization, Managerial Efficiency, Strategic Management Process, Human Resources Management (HRM), Innovation
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