An assessment of the level of sustainability of Foreign Direct Investments (FDI) of German companies in Latvia

Günter  Hofbauer; Andrejs  Limanskis

doi:10.23762/FSO_VOL10_NO1_6

Published : 2022-03-30

Vol. 10 No. 1 (2022)

An assessment of the level of sustainability of Foreign Direct Investments (FDI) of German companies in Latvia

Günter Hofbauer

https://orcid.org/0000-0002-1628-818X

Andrejs Limanskis

https://orcid.org/0000-0002-3333-2111

DOI: https://doi.org/10.23762/FSO_VOL10_NO1_6

Abstract

The purpose of this paper is to find out the drivers of and barriers to Foreign Direct Investments (FDI) within the scope of sustainability considerations in order to add new knowledge to the scientific discussion. The sustainability of FDI deserves attention due to the importance of cross-border flows of capital in major fields of the economy and politics. The level of sustainability awareness of investors, however, is not known. Pioneering field research was conducted among 160 German companies in Latvia. Methodologically, a literature review, FDI statistics, primary data from an Internet-based questionnaire, the statistical evaluation of responses with SPSS, and an analysis of correlations measured by Cramér’s V, based on Pearson’s chi-squared statistic, were used. A gap in the scientific literature pertaining to sustainability drivers and outcomes in relation to FDI was addressed. The empirical part disclosed the level of mainstream implementation of sustainability in the operations of German investors in Latvia. The understanding of the sustainability awareness of investors can be used at the level of political decision making in Latvia and other countries in order to promote the sustainability of incoming FDI. A remarkable level of measurable awareness of sustainability issues among German entrepreneurs in Latvia was found. However, there is still room for improvement and further research.

Keywords:

sustainability, foreign direct investment (FDI), German investors, Latvia, ESG (social, environment and governance), COVID-19

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Hofbauer, G. ., & Limanskis, A. . (2022). An assessment of the level of sustainability of Foreign Direct Investments (FDI) of German companies in Latvia. Forum Scientiae Oeconomia, 10(1), 98–116. https://doi.org/10.23762/FSO_VOL10_NO1_6

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Günter Hofbauer

guenter.hofbauer@thi.de
https://orcid.org/0000-0002-1628-818X

Affiliation:

Technical University Ingolstad

Bio Statement (e.g., department and rank)

Günter Hofbauer is a Professor at the Business School at Technical University Ingolstadt (THI), Germany. His main research interests include innovation, digitalisation and sustain- ability. He holds Ph.D. and diploma degrees from the University of Regensburg, Germany, and completed an executive study programme at Darden University, University of Virginia, USA. He is the author, co-author and editor of more than 70 monographs and editorial books, and has authored 70 scientific articles. He has read approximately 45 conference contributions at national and international conferences in Austria, Bulgaria, China, the Czech Republic, Georgia, Hong Kong, Latvia, Lithuania, Poland, Russia, Serbia, South Africa, and the USA. He is a member of nine editorial and scientific boards.

Currently he is vice-president of the European Research and Working association and was president of the German Association of Marketing (AfM) from 2009 until 2017. He was awarded the Bavarian State Prize for outstanding lecturing in 2004. He was awarded the prize for excellence in executive teaching in 2014 by the European Institute of Postgraduate Studies (EIPOS), an institute of the Technical University of Dresden, Germany. He was previously employed in different managerial and executive positions in the electronic and automotive industry.

Andrejs Limanskis

andrejs.limanskis@riseba.ly
https://orcid.org/0000-0002-3333-2111

Affiliation:

RISEBA University of Business, Arts and Technology, Riga

Bio Statement (e.g., department and rank)

Andrejs Limanskis is a Docent at the RISEBA University of Business, Arts and Technology in Riga, Latvia. His main research interests include foreign direct investments, entrepreneurship, and sustainability. He holds Ph.D. and diploma degrees from the Lomonossov State University in Moscow, Russia, recognised by the Ministry of Economy and Research of the Land Nordrhein-Westfalen in Dusseldorf, Germany. He completed a teachers’ qualification-raising programme at the International Management Teachers Academy (IMTA), Bled, Slovenia. He is the author, co-author, reviewer, and editor of five monographs, and has authored over 20 scientific articles. He has delivered more than 20 conference contributions at national and international scientific conferences in Estonia, Latvia, Lithuania, Portugal, Turkey, Poland, Russia, Germany, and the USA. He is a member of an editorial and scientific board in Latvia. Currently he is a member of the Eurasia Business and Economics Society (EBES). He was previously employed in different managerial and executive positions in business consulting in Latvia and Germany.