Internationalization of Turkish manufacturing firms: foreign direct investment outflow

Abstract

This thesis provides an empirical analysis of internationalization of Turkish manufacturing firms (TMFs) through foreign direct investment (FDI). Drawing from official sources and with the researcher's individual efforts, more than 200 TMFs that engaged in FDI are identified. With an extensive literature review, and by conducting interviews a survey questionnaire is developed and then pre-tested. After revision, the questionnaire is administered to a sample of 94 TMFs. About forty-five percent of these firms were among the largest companies of Turkey; and, rest of them were small and medium-sized firms.In exploring TMFs' FDI involvement; first, relative strengths of these firms and the importance of the strengths in their internationalization are identified. Second, perceived performance of TMFs' foreign equity ventures and its relationship with parent firm's capabilities are determined. Third, strategic pull (host country-related) and push (home-country-related) motives of these firms' internationalization are examined. Fourth, relevance and usefulness of eclectic, Uppsala and network theories for TMFs' internationalization are investigated. In examining the issues of TMFs' capabilities, performances, motives and other subjects, hypothesis are developed and tested (by means of factor analysis, logistic regression analysis, multiple regression analysis, t tests and analysis of variance) with respect to sample characteristics of age, size, industry type, choice of host country location, and entry mode. Findings are reported and discussed.