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Organising FDI promotion in Central–Eastern European regions

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Abstract

Increasing contest for lucrative foreign direct investment (FDI) projects requires national and, more importantly, regional authorities to actively compete and promote their areas. The issues of organisational settings and networks remain among the most important determinants of successful FDI attraction strategies. The organisation of promotional efforts, especially on the regional level, impacts strategic choices and divides responsibilities allowing for increase in efficiency by effective use of resources and promotional techniques. It also influences the definition of a regional product, choice of target groups, competition perception and the coherence of the region's projected image. Using primary data collected in Czech, Polish and Slovak regions, this paper investigates the links between the emerging organisational frameworks and strategic choices of agencies involved in regional promotion. Various levels of authority centralisation, characterising the three identified frameworks, are not clearly reflected in activities of individual agencies.

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Notes

  1. The paper presents findings of an ongoing research. Comments on general ideas and particular problems are most welcome. Parts of the paper were presented at the CIRM 2006 Conference and appeared in proceedings.

  2. A region can be defined in multiple ways (for a comprehensive discussion, see eg Terlouw, 2001). In the context of the research presented in this paper, regions are treated as administrative units.

  3. Considering the stage of the research project, this paper in most parts avoids normative statements; however, it is believed that its findings will be useful for those involved with foreign investment promotion.

  4. The interviews lasted between one and three hours. The issues discussed included the nature of the agency's cooperation networks, FDI promotion strategy and activities performed, and selection of target groups.

  5. It is recognised that some organisations involved with FDI promotion, both public (eg National FDI Agency) and private (eg Chamber of Commerce), could have their offices abroad; however, as they do not constitute a separate entity they are treated as representatives. At the time of this study, none of the researched regions was involved in international cooperation for FDI promotion purposes.

  6. For a full list of potential participants and their role in place marketing, see Kotler et al. (1999).

  7. To the numerous organisations directly involved in FDI promotion, an even larger number of cooperatives must be added. While the number of cooperatives and the nature of relationships between them and any of the main agents vary, the main cooperatives usually are regional and national chambers of commerce, industrial associations, regional and national tourism boards, local development agencies and national embassies abroad.

  8. Interview with Sario representative.

  9. Estate and relocation agents, banks, financial institutions, accountancy and consultancy firms etc.

  10. Both quotes come from an interview with the Sario representative.

  11. Interview with The Institute of Polish Brand representative.

  12. For a full discussion of levels of rivalry, see Kotler et al. (1999).

  13. This is in conflict with the Sario regional branch in Košický kraj, which recognises each region of Slovakia as potential competition.

  14. Interview with PAIiIZ representative.

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Acknowledgements

The author thanks all the interviewees for their time and willingness to share information. Thanks are also extended to the anonymous reviewers for their constructive and helpful feedback on the initial version of this paper. The author also thanks his supervisors for their invaluable suggestions and comments on the draft version of this paper. The responsibility for the presented views and ideas remains with the author.

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  1. Paisley Business School, University of Paisley, High Street, Paisley, PA1 2BE, Scotland, UK

    Paweł Capik

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Capik, P. Organising FDI promotion in Central–Eastern European regions. Place Brand Public Dipl 3, 152–163 (2007). https://doi.org/10.1057/palgrave.pb.6000058

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