AUTHOR
Djärf, Tommy; Engström, Jonas

DATE
2004-10-27

DEPARTMENT
Business Administration and Social Sciences / Industrial marketing and e-commerce

SUMMARY
Business across borders is increasing in a substaintial speed, thus it is crucial to understand the underlying mechanism particularly from a firms perspective. The purpose of this thesis is to investigate the underlying factors determining foreign direct investment (FDI) by companies in the steel profile industry.

The research questions posed were:
- How can the influence of the internal company factors on FDI in the steel profile be described?
- How can the external market factors influencing a company's FDI decision in the steel profile industry be described?
- How can the FDI strategy in the steel profile industry be described?

Literature in general and theories in particular discussing FDI were reviewed and a theoretical frame of reference was constructed which became the basis of our interview guide with two companies. The two case studies are the two Swedish companies in the steel profile industry, namely Lindab and Plannja. Both Lindab AB and Plannja AB considered the quality control of the product and therefor the profit, the most important external factor. The most important location factor for Lindab AB was an area with a middle class population, while Plannja AB preferred an area with great potensial growth. The strategy of the two companies where also different in finding a method to make profit. Lindab AB preferred to build new facilities, while Plannja AB bough already existing facilities.

ISSN 1404-5508 / ISRN LTU-SHU-EX--04/249--SE / NR 2004:249