Established foreign subsidiaries and the relationship between: the environment, satisfaction and investment intentions

Ano: 2006 | Volume: 1 | Número: 1

Autores: Paul Kalfadellis, Judy Gray, Susan Reeman

Palavras-chave: Subsidiary development, Environment, Satisfaction, Investment Intentions

Resumo Inglês:

This study identified the environmental factors that influence established foreign
subsidiaries operating in Australia. In seeking to examine and explain subsidiary development
in a location this study sought to test the relationship between the identified environmental
factors, satisfaction and future investment intentions. Based on a sample of 356 foreign
subsidiaries operating in Australia, a mediated regression model was used to test the
relationship. The results showed that overall satisfaction, national institutional environment,
and local investment image had a positive predictive effect, while input costs and small market
had a negative predictive effect on the relationship with investment intentions. Overall
satisfaction as a mediator on the relationship between these factors and investment
intentionsindicated that national institutional environment, and local investment image had no
additional effect on investment intentions beyond their impact on overall satisfaction.