The Universal Model of theories determining FDI revisited

Motives and Barriers to the Location of MNEs and the Role of the Informal Economy: the Case of Greece

“…That points to the augmentation of the significance of other barriers to inward FDI such as the lack of entrepreneurship and managerial skills which are evident mainly in the post-great crisis epoch. Note: Type of FDI determinants are categories of motives from Bitzenis (2003) and Bitzenis and Papadimitriou (2011).…”

“…Data collected directly from MNEs operating in Greece via a questionnaire are used to achieve this aim. The questionnaire was based on the theoretical considerations of the Universal Model of FDI activity (Bitzenis and Papadimitriou, 2011) to meet this aim and was completed by upper management personnel during 2018-2019 (they were contacted by email/telephone and completed the questionnaire online). The questions concern the nature, performance, and goals of MNEs/subsidiaries and the factors favoring/discouraging inward FDI and the survey was administered in both English and Greek 5 .…”

“…The Universal Model of theories determining FDI encompasses all abovementioned factors and is based on the argument that no single theory explains all aspects of FDI activity (Bitzenis, 2003;Bitzenis, 2008;Bitzenis and Papadimitriou, 2011). Empirical applications of the Universal Model are studies of the motives and barriers to the activity of MNEs carried out using questionnaires (for example see Bitzenis, Tsitouras and Vlachos, 2007;Bitzenis, Tsitouras and Vlachos, 2009).…”

The political regime as a determinant of inward foreign direct investment

“…This broad model incorporates most of the dominant FDI theories, and it is subject to change since some theories become obsolete and the world economy evolves (Bitzenis and Papadimitriou, 2011, p. 352). Some of the FDI theories are static, including only the factors that lead to the decision of FDI and other dynamics, considering the evolution of the foreign enterprise and its interaction with host industry and the host country (Bitzenis, 2003;Bitzenis et al, 2012;Bitzenis and Papadimitriou, 2011). The Universal Model is less eclectic and more encompassing than Dunning's paradigm and defines the FDI's motives regarding their content (Vlachos et al, 2019, p. 270).…”

“…The model connects all the FDI theories on the basis that the ultimate purpose of the firm is to ensure their profits. To this framework the categorization of motives are as market seekers, market seekers from a strategic point of view, factor seekers, efficiency seekers, locational seekers, exploiting ownership advantages, financial aspects hunters, political reasons and overcoming imperfections (Bitzenis, 2003;Bitzenis et al, 2012;Bitzenis and Papadimitriou, 2011). The universal model is not used as a whole but encourages the use of the above branches depending on the firm's profile and priorities.…”