lnu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Understanding establishment mode choice of foreign manufacturing firms in Ghana
Ghana Institute of Management and Public Administration, Ghana.
Linnaeus University, School of Business and Economics, Department of Marketing.ORCID iD: 0000-0001-5182-5203
2015 (English)In: International Journal of Emerging Markets, ISSN 1746-8809, E-ISSN 1746-8817, Vol. 10, no 4, 896-920 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – The purpose of this paper is to analyse the foreign direct investment (FDI) strategies ofmanufacturing firms in Ghana using the eclectic model in order to understand how ownership, location and internalization factors impact FDI to developing countries like Ghana.

Design/methodology/approach – The authors use a quantitativemethodology in order to statistically explore the relationships between dependent and independent variables. The data comes from a sample of 75 multinational enterprises that invested in the manufacturing sector between 1994 and 2008.

Findings – The results reveal that large firm size, extensive international experience and large market size lead to the choice of acquisition mode of entry, while high cultural distance, high country risk, high proprietary assets and incentives lead to the choice of greenfield mode in the context of Ghana.

Research limitations/implications – The results imply that the different economic, business

and legal (locational) conditions of developing countries create different FDI strategies and paths of companies compared to developed markets.

Practical implications – Policy makers in developing countries should make efforts to improve market size, the institutional and regulatory environment, as well as the availability of human capital in order to attract FDI.

Originality/value – FDI studies have mainly analysed establishment mode strategies of firms in advanced markets. There is an increasing amount of research on FDI in emerging markets but very little on developing countries and African markets. Therefore, this study enables the authors to develop implications for existing theory and generate practical implications for firms and policy makers related to African and developing country markets.

Place, publisher, year, edition, pages
Bingley, United Kingdom: Emerald Group Publishing Limited, 2015. Vol. 10, no 4, 896-920 p.
Keyword [en]
Africa, Developing countries, Ghana, Eclectic paradigm, Establishment mode, Foreign direct investment
National Category
Business Administration
Research subject
Economy, Marketing
Identifiers
URN: urn:nbn:se:lnu:diva-51822DOI: 10.1108/IJoEM-09-2012-0124OAI: oai:DiVA.org:lnu-51822DiVA: diva2:916090
Available from: 2016-03-31 Created: 2016-03-31 Last updated: 2016-04-11Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Owusu, Richard A.
By organisation
Department of Marketing
In the same journal
International Journal of Emerging Markets
Business Administration

Search outside of DiVA

GoogleGoogle Scholar

Altmetric score

Total: 310 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf