Abstract:

This study aims to investigate the outward foreign direct investment (FDI) location choices of leading Turkish business groups (TBGs) regarding internationalization motives, dynamic capabilities (DC), and institutional context. The scope of the study consists of eleven multinational TBGs with FDI exceeding 100 million USD and a two-stage mixed method was used. In the qualitative methodology, person-to-person interviews and content analysis were used for determining TBGs’ internationalization motives and DC. The quantitative methodology included an analyses that measured the effect of internationalization motives on location choice with the moderation of DC and institutional context. The qualitative stage results of the research suggested that TBGs act with market, resource, efficiency, and strategic asset-seeking motives. Formal institutions were effective in TBGs’ internationalization, and their DC consists of marketing, internationalization, and innovation capabilities. According to the quantitative stage results, institutional context moderated the effect of dynamic capabilities between internationalization motives and location choice. The importance and originality of this study were that it explored the internationalization process of business groups (BGs) and affiliates, and it investigated the effect of DC and institutional context with a combination of quantitative and qualitative approaches.

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