Assessing Organizational Resources for Post Pandemic Resiliency and Employees’ Well-Being

According to The Global Competitiveness Survey, 2017/2018 (World Bank, 2018) on interviewed 754 executives of multinational enterprises (MNE) with investments in developing countries, 51 per cent of respondents were motivated by lowering production costs or establishing a new base for exports. Today, renewable energy is the cheapest source of power. Around 162 gigawatts (GW), or an increase of 62 per cent of total renewable power generation, were added worldwide in 2020, providing lower energy costs than the most inexpensive new fossil fuel option (IRENA, 2021). Therefore, we argued that MNEs motivated by cost reduction would prefer to invest in a country with a higher share of energy from renewable sources than otherwise. Hence, this signifies that a country’s share of energy from renewable sources may be a crucial pulling factor for inward FDI.

On the other hand, although many types of empirical research have been carried out to investigate the determinants of FDI, most such studies have focused on natural resource-seeking and market-seeking arguments. However, no attention has been given to the share of energy from renewable sources concerning FDI inflows.