Entrepreneurial initiatives, business environmental factors, and the success of Kenya’s outward foreign direct investments in East Africa
Abstract
FDIs, from emerging economies, continue to play an important role in world economic activities.
Studies on the nature, the number, and factors that drive their growth have not received adequate
research attention from scholars both within East Africa and elsewhere. Studies on outward FDIs
in East African countries of Burundi, Kenya, Rwanda, Tanzania and Uganda, are very scanty.
This study, conducted between 2007 and 2011, was aimed at finding out symbiotic influence of
entrepreneurial initiatives, and business environmental factors that have led to the expansion of
Kenya’s outward FDIs in Eastern African Region.
The study was anchored on internationalization trade theory, and specifically, on John Dunning’s
eclectic paradigm theory, and Michael Porter’s competitive advantage of nations. Field work was
conducted in 10 Kenyan outward FDI operating in EAC countries. Investigations carried in the
five member states of EAC, indicated that there were factors that were specific to particular
locations and country. Kenyan firms that were started from infancy and grew through
intermediate stages had matured to becomeOFDIs. The study was aimed at finding out the
relationship between entrepreneurial initiatives and the role of environmental factors that led to
an increase of Kenya’s outward FDIs within the EAC region.
Results of the study showed that there was a direct correlation between entrepreneurial initiatives
and the increase of Kenya’s outward FDIs in the host countries of EAC. It is concluded that
successful growth of Kenya’s outward FDIs in EAC countries, although attributable to several
factors, were mainly influenced by entrepreneurial aggressive nature of Kenyan businessmen and
environmental factors that played a big role in enabling Kenyan OFDI businesses to thrive.
Publisher
School of Business, University of Nairobi
Subject
Entrepreneurial initiativeOutward FDI
Emerging Economies
Internationalization
Preferential treatment
Eclectic paradigm
Description
Entrepreneurial initiatives, business environmental factors, and the success of Kenya’s outward foreign direct investments in East Africa
Collections
- School of Business [175]