G. Hooley et al., FOREIGN DIRECT-INVESTMENT IN HUNGARY - RESOURCE ACQUISITION AND DOMESTIC COMPETITIVE ADVANTAGE, Journal of international business studies, 27(4), 1996, pp. 683-709
This paper examines the impact of foreign direct investment on the mar
keting resources and capabilities of firms in Hungary. Foreign direct
investment into Hungary has been substantial in recent years and is cr
edited as a major factor in leading the transition towards a market-le
d economy. While the motives of foreign investors to invest and of gov
ernments to attract investment have been extensively addressed in the
literature, there has been little research on the reasons why individu
al host firms seek to attract investment. This paper develops a theore
tical explanation of host firm motives through the resource-based theo
ry of the firm, proposing that host firms seek resources from their in
vestors 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 enterp
rises.