Features Of Internalization and Foreign Direct Investment Through An Thailand’S Entrepreneur Perspective

Abstract

The objective of this study was to understand the effect of indicators on the characteristics of internalization towards the form of foreign direct investment, by considering the indicators of structural features and performance characteristics of 125 Thai business units that invest in CLMV from the Thai investment database listed on the Stock Exchange of Thailand. The study utilized average statistics, standard deviation, frequency, percentage, and tested with normal regression with the least-squares technique. It was found that the marketing expenditure variable and sales of foreign companies are the most important factor in the structural characteristics of Thai businesses that invest, more than other factors such as research and development costs, and profits abroad. Other variables such as foreign assets to total assets ratio, and the foreign country branch to total branch ratio is also key factor in performance characteristics in international business management. In attracting investment in Thai businesses in the CLMV, it was found that the factors of foreign investment proportion, right to take repatriated profit, ownership, political/institutional instability, the competitive environment can significantly explain the variation of the dependent variable. For the challenge in investing in CLMV, the factor of regulatory constraints is significantly more important than other factors.