2008
DOI: 10.1108/02621710810883643
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Firm‐specific capabilities and foreign direct investment activities of Turkish manufacturing firms

Abstract: The purpose of this paper is to empirically investigate the influence of the home country's unfavorable business environment on the internationalization of Turkish manufacturing firms (TMFs) via FDI. This study uses cross-sectional survey data from a sample 94 TMFs that have equity investment in 28 countries since the mid 1980s. The research results indicate that utility costs, unstable exchange rates, high inflation rate and political instability are considered to be the most important push motives of TMFs. W… Show more

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Cited by 20 publications
(11 citation statements)
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“…The results are mostly insensitive to manufacturing and non-manufacturing industry distinction. These findings are in line with Uğurlu (2016) and Kaya and Erden (2008) affirming that FDI is more likely for firms that have high exports, are larger in size, R&D intensive and efficient in terms of asset utilization.…”
Section: Conclusion and Discussionsupporting
confidence: 88%
See 1 more Smart Citation
“…The results are mostly insensitive to manufacturing and non-manufacturing industry distinction. These findings are in line with Uğurlu (2016) and Kaya and Erden (2008) affirming that FDI is more likely for firms that have high exports, are larger in size, R&D intensive and efficient in terms of asset utilization.…”
Section: Conclusion and Discussionsupporting
confidence: 88%
“…Among these few studies that analyzes the determinants of outward FDI, most rely on macro-level reasoning to account for the FDI flows (Kayam and Hisarcıklılar, 2009;Kok and Ersoy, 2009;Yaprak and Karademir, 2011;Aybar, 2016). Moreover, some studies investigate the entry mode and location choice determinants of Turkish firms' outward direct investments through questionnaires conducted and/or factor analysis (Kaya and Erden, 2008;Anıl et al, 2011;Kaya, 2014;Gubbi and Sular, 2015;Uray et al, 2015). The macro-level studies examine the determinants of outward FDI by bilateral trade, economic stability, productivity, gross domestic product per capita for both the source and destination countries, the distance between them and population and find that Turkish outward investments are mainly market oriented.…”
Section: Introductionmentioning
confidence: 99%
“…Green capabilities are the key independent variables in this paper. Kaya and Erden (2008) defined capability as the collection of complex individual skills, assets and knowledge that enable a firm to plan its activities and resources to achieve its objectives. Five main capabilities, namely, manufacturing, finance, innovation, intraorganisational and integration, were found to be the most frequently used constructs from 1992 to 2015 based on the extensive review of previous studies.…”
Section: Literature Review and Development Of Hypothesismentioning
confidence: 99%
“…Similarly, Indian IT firms also possessed managerial and labor low-cost advantages (Narayanan and Bhat 2011) which acted as their ownership advantages. For Turkish firms, such ownership advantages have been identified as operation-related, product-related, marketing-related and management-related competitive advantages (Kaya and Erden 2008).…”
Section: Literature Reviewmentioning
confidence: 99%