Academy of Finland Project on International Divestment and Relocation Decisions: The Impact on Firm Value

Research Council of Finland
Suomen Akatemian rahoittaman projektin tarkoituksena on luoda ymmärrystä monikansallisten yritysten investointien purku- ja muuttostrategioista ja niiden vaikutuksesta yritysten arvoon. Tieteellisessä ymmärryksessä purku- ja muuttostrategioiden syistä, esteistä, päätöksentekoprosesseista ja arvopotentiaalista on yhä suuria tutkimusaukkoja, ja tutkimus edistää teoriaa integroimalla strategisen johtamisen, kansainvälisen liiketoiminnan ja rahoituksen kirjallisuutta. Tutkimus hyödyntää määrällistä dataa n. 2500 pohjoismaalaisesta tuotantoyrityksestä. Lisäksi projektissa kerätään haastatteludataa pohjoismaalaisilta yrityksiltä, jolla tutkitaan päätöksentekoprosesseja purkamisissa ja muutoissa. Projekti suoritetaan yhteistyössä kansainvälisten yliopistojen tutkijoiden kanssa, ja tulosten odotetaan auttavan yritysjohtajia suunnittelemaan ja suorittamaan purku- ja muuttostrategioita. Tulokset auttavat myös poliittisia päättäjiä ymmärtämään investointien purkusyitä kansallisella tasolla.

DPROJECT SUMMARY

Foreign direct investments (FDIs) in their various forms are the main form of entry by multinational enterprises (MNEs) into world markets. However, statistics on world investment reports and empirical studies have indicated that changing endogenous priorities of firms, turbulent political, economic and legal conditions in FDI host countries, and increasing globalization and technological development have led many MNEs to divest and relocate their FDIs. However, significant gaps remain in our understanding of the determinants, deterrents, decision process, and value creation potential of foreign divestment and relocation strategies. The purpose of this project is to provide a more comprehensive understanding of foreign divestment and relocation strategies of MNEs and their role in firm value.

The research project will adopt several different methods depending on the subprojects in question (qualitative, quantitative and mixed method) in order to provide a holistic understanding of the phenomenon. More specifically, we plan to collect secondary quantitative data on divestment strategies and firm value from ca. 2000-2500 investments and divestments of Nordic firms in manufacturing sector. We also plan to collect data from secondary sources for qualitative analysis as well as carry out interviews in 20 Nordic case firms (6-15 Finnish and other Nordic firms) to investigate foreign divestment and relocation decisions. This project will be carried out with Collaboration of Renowned Scholars from International Universities in at least six different countries.Scientific results of this project will be presented in leading international conferences and published in high quality peer reviewed international Journals. The project will help MNE Managers understand the determinants, deterrents, decision process, and value creation potential of foreign divestment and relocation strategies.

PROJECT ORGANISATION

Jorma Larimo - Project leader

Tahir Ali - Post-doc researcher

Pratik Arte - Post-doc researcher

Huu Le Nguyen - Post-doc researcher

Minnie Kontkanen - University Lecturer

Tiina Leposky - Post-doc researcher

Roman Filenko - Doctoral student

Ha Nguyen - Doctoral student

Arshed Iqbal - Doctoral student

Oskar Sniegowski - Research Assistant (2019-2020)

PROJECT OUTPUT

Published works

year

Author (s)

Headlines

Outlet

2019

Pratik Arte, Jorma Larimo

Taking stock of foreign divestment: Insights and recommendations from three decades of contemporary literature

International Business Review

2020

Yi Wang, Jorma Larimo

Survival of the full versus partial acquisitions: The moderating role of the firm's internationalization experience, cultural distance, and host country context characteristics

International Business Review


Conference presentations (competivive tracks)

year

Person (s) involved

Conference

2018

Pratik Arte, Jorma Larimo

EIBA Conference, Poznan

     

2019

Ha Nguyen, Jorma Larimo, Pervez Ghauri

AIB-UKI Conference, Brighton

Desislava Dikova, Ahmad Arslan, Jorma Larim

AIB-UKI Conference, Brighton

Pratik Arte, Jorma Larimo

AIB Annual Meeting, Copenhagen

Huu Le Nguyen, Jorma Larimo

AIB Annual Meeting, Copenhagen

Ha Nguyen, Jorma Larimo, Douglas Dow

AIB Annual Meeting, Copenhagen

Pratik Arte, Jorma Larimo

15th Vaasa IB Conference, Vaasa

Roman Filenko, Jorma Larimo, Tahir Ali

15th Vaasa IB Conference, Vaasa

Yi Wang, Jorma Larimo, Jean Francois Hennart

15th Vaasa IB Conference, Vaasa

Ha Nguyen, Jorma Larimo, Douglas Dow

EIBA Conference, Leeds

     
2020 Pratik Arte, Jorma Larimo AIB-UKI Conference, Glasgow
     

INTERNATIONAL COLLABORATORS

Professor Jean-François Hennart, Tilburg University

Professor José Mata, University of Lausanne

Professor Carlos M. P., Sousa, Molde University College

Professor Pervez Ghauri, University of Birmingham

Professor Douglas Dow, University of Melbourne

Professor Desislava Dikova, Vienna University of Economics and Business

Dr. Yi Wang, University of Southern Denmark

Dr. Ahmad Arslan, University of Oulu

Duration
Project duration
-
Budget
External funding
360 000€
Units and groups
Project actors at the University of Vaasa
International business and marketing
Marketing and Communication
Organisation coordinating the project
Funding partners