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

Abstract

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.