Finnish public perceptions on foreign direct investments

Abstract

The purpose of this study is to identify Finnish public perceptions on Foreign Direct Investments (FDI) and the influence of the entry mode of the investment on these perceptions. As entry modes the study refers to either cross-border mergers & acquisitions (M&A) or greenfield investments. Foreign companies engaging in FDI are referred to as Multinational Enterprise (MNE). The study works from the assumption that public perceptions are location bound and need to be considered as viewing the attractiveness of a country for FDI. The theory of Social License to operate (SLO) is applied as part of the theoretical framework of the study and the study aims to identify public perceptions influencing weather an SLO is provided to the MNE and the FDI or not.

The study uses the qualitative method of Critical Discourse analysis. Public perceptions are analyzed and identified through analyzing comments of readers on the online platform of a Finnish newspaper, Helsingin Sanomat. The comments have been posted on online articles first announcing an FDI. The data used in the study includes comments posted on five FDI cases between the period of 2019-2021. Three of the cases have the entry mode of cross-border M&A and two are greenfield investments.

The study concludes in presenting a framework for both entry modes on factors influencing public perceptions ultimately leading to the public either providing or denying an SLO for the FDI. The findings of the study show that factors influencing the public perceptions differ depending on the entry mode of the FDI. The entry mode also has an influence on whether the MNE receives and SLO directly or not. In addition, the findings show that it is necessary to take into consideration the historical and societal context of the FDI as considering the public perceptions.