Chinese Foreign Direct Investments Entry Strategies and Firm Performance
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Date
2016-11Author
Nyakundi, Richard G
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The study sought to answer the following research question: What are the entry strategies
adopted by Chinese FDI to enter Kenyan Economy and their influence on firm
performance? The research objectives were to determine the entry strategies used by
Chinese FDI to enter the Kenyan economy and to determine the extent to which Chinese
FDI strategies affect firm performance. A case study design was used since all the MNCs
involved were from the same country that is China. Interview guide was used for data
collection. The respondents were required, based on the interview guide, to indicate the
review frequency of entry strategies their organizations had deployed, and majority of the
respondents stated that review of entry strategies is normally predicated upon
environmental factors at a point in time, and the respondents noted that factors which
influence review of entry strategies included political , legal and cultural environment,
and that it played an important part in identification of opportunities inherent in the new
market as well as the challenges the organization is most likely to encounter in the short
and long run. The respondents also noted the level of competition in the target market as
some of the factors influencing their decision to review entry strategies, and terrorist
activities as well. Changes in the legal environment was also a concern that the
respondents noted had a significant influence on whether to review entry strategies.
Respondents also indicated that venturing into the foreign market like Kenya was
motivated by the need to survive competition at the parent home of the company and to
expand market size of the organization, to increase the sales and profits of the
organization, and to moderate cost of doing business at home. This indicates that firm
performance was influenced by the entry strategy adopted by an organization. The study
recommends that policy development needs to take into account the structure of entry
strategies. And that policies need to be designed in a way that accommodates
conveniences of licensing, foreign direct investment, management contract, exporting,
joint venture, assembly option, manufacturing, strategic alliance, turnkey operations and
acquisitions as entry strategies.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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