The mediating role of investment image in the effect of country image on investment intention: an empirical study on Egypt

Aya Mohamed Izzularab*, Farouk Radwan, Ramadan Gad, Peter Björk

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review


Purpose: This study aims to investigate the effect of country image on investment intention and the role of investment image as a mediating factor. Both cognitive and affective country image dimensions were addressed to assess the functional and emotional aspects of the country image and their effects on investment intention. The current study targeted Egypt, as one of the developing countries, from the point of view of Nordic investors.
Design/methodology/approach: Partial least squares structural equation modeling was used to test the proposed model using data collected from 124 top managers of different companies in the clean energy sector in Nordic countries.
Findings: The results showed that cognitive and affective country images are positively related to the investment image, and that investment image is positively correlated with the investment intention. The investment image has a full mediating role in the relationship between cognitive and affective country images and investment intention.
Originality/value: The past few decades have witnessed a growing interest in country image research; however, limited studies have investigated the impact of country image on foreign investment intention. This study adds to the understanding for the potential contribution of the investment image of developing countries in the decision-making process for the foreign direct investment.

Original languageEnglish
Peer-reviewed scientific journalReview of International Business and Strategy
Issue number3
Pages (from-to)493-516
Number of pages24
Publication statusPublished - 24.03.2023
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management
  • Affective country image
  • Cognitive country image
  • Country image
  • Intention
  • Investment image
  • Partial least squares structural equation modeling

Cite this