Purpose While many studies have investigated the impact of institutional factors (i.e. financial risk factors) in the host country on inward foreign direct investment (FDI), fewer studies have researched on the locational aspects of FDI in relation to the political economy. This paper aims to fill this gap by examining the effects of the political economy on inward FDI in Poland’s regions and in other CEE (Central and Eastern Europe) countries. Design/methodology/approach The paper develops a theoretical argument postulating that political economy affects locational determinants of FDI inflow. To test this hypothesis empirically, several analyses were performed at the national level (Poland, Bulgaria, Romania, Slovakia and the Czech Republic) and at the subnational level (Poland’s provinces). First, the “footloose” nature of FDI inflows using the time series analysis was examined. Then a fixed-effect panel data regression model and a dynamic adjustment model to quantify the impact of political ideology and agglomeration effects were performed. Findings After controlling for economic and institutional determinants of FDI, the findings indicate that, in transitional economies, ideology affects the locational choice of multinational corporations (MNCs). At the national level, the results show that political risk, liberalization and economic reforms are important drivers of FDI inflows. At the subnational level, the vote for a liberal party positively affects the distribution of FDI in the provinces. Another finding is that electoral cycles also affect FDI inflows at regional levels in Poland. Finally, this study provides some supporting evidence for the “footloose” nature of FDI in case of external shocks. Originality/value This study contributes to the literature on the locational determinants of FDI by showing that ideology constitutes an important factor for locational choices by MNCs. The findings have important implications for public policy decision-makers who are seeking to improve the attractiveness of their country or region as an FDI destination.

Purpose Exploration of potential markets in foreign regions such as Europe becomes critical for emerging market multinational enterprises (MNEs). This study aims to investigate structural factors that affect the location choice of Chinese and Indian MNEs in Europe and compares them with USA and Japanese MNEs. Design/methodology/approach The authors use a holistic approach to identify possible configurations of the determinants of Indian and Chinese outward foreign direct investment (FDI) into 38 European countries. The authors test two configurations as follows: knowledge-seeking by Chinese and Indian MNEs in “non-predictable” markets; market-seeking by USA and Japanese MNEs. Findings The findings reveal several strategies deployed in Europe by Chinese and Indian MNEs that are more specific than the pure strategies identified in the literature (e.g. market-seeking, knowledge-seeking). More importantly, unlike USA and Japanese MNEs, the findings confirm a two-stage strategy hypothesis for Chinese MNEs in Europe. Additionally, they show that the quality of institutions and infrastructure underlies the attractiveness of a territory. Research limitations/implications Multilevel configurational research might have also been used to consider firm- and industry-level determinants. Practical implications Good governance positively affects the entire set of locational determinants. In addition, good infrastructure and institutions are necessary conditions for a country to attract FDI inflow. Originality/value Recent internationalization models have been useful in identifying drivers of FDI by emerging market multinational enterprises vs advanced market multinational enterprises in Europe. This study mobilizes a comparative configurational approach.

Notre article vise à améliorer la compréhension des liens entre les dimensions économique, sociale, et sociétale (incluant l’environnement) de la performance globale, en mobilisant un cadre théorique mixte (la théorie des parties prenantes et la théorie des ressources). Dans ce cadre, nous développons un modèle de représentation et de mesure de la performance globale explicitant simultanément les relations structurelles entre ses différentes dimensions. Ce modèle conceptuel est validé sur des données collectées auprès des sociétés coopératives et participatives (SCOP) et ses implications sont discutées.

This article helps explain the theoretical mechanisms of the contextual influence of ambidextrous foreign acquisition strategies of Chinese multinational enterprises (MNEs) in Europe. Based on the National Business System approach, we demonstrate that these strategies are contextually driven and institutionally conditioned. We use fuzzy‐set qualitative comparative analysis to identify the configurations of factors affecting the strategies of 829 mergers and acquisitions (M&As) in 29 countries in 1992–2019. We propose a new measure for the organizational ambidexterity construct based on the nature and type of M&As. Our results show that conglomerate affiliation, state ownership, and international business experience affect the deployment of ambidextrous acquisition strategies, while outward foreign direct investment (FDI) policies have a positive effect only for individual firms or when host country innovation environment is well developed. Finally, smaller individual MNE early internationalizers are more likely to deploy acquisition ambidexterity when the government adopts outward FDI policies.

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