Foreign Direct Investment and Local firm’s Performance

2021 ◽  
pp. 57-73
Author(s):  
M. D Wanjere ◽  
M. Ogutu ◽  
M. Kinoti ◽  
X.N. Iraki
Keyword(s):  
Foreign Direct Investment ◽  
Firm Performance ◽  
Production Technology ◽  
Direct Investment ◽  
Pearson Correlation ◽  
Capital Flow ◽  
Manufacturing Firms ◽  
Primary Data ◽  
Advanced Production ◽  
Technology Marketing

This paper investigates the effect of FDI on performance of manufacturing firms in Kenya. Little is documented about the link between FDI variables of capital flow, advanced production technology, marketing expertise and management know-how and performance of firms. The study’s sought to establish the effect of each individual FDI variables on firm’s performance. It also sought to established the overall effect of the performance manufacturing firms in Kenya. The population of study comprised 100 companies registered with Kenya Association Manufacturing as at the time of data collection in 2019 and that had over 10 percent foreign ownership. The respondents were the CEOs of organization. The study used a structured questionnaire to collect primary data. Descriptive and inferential statistics were both used to analyze the data. Data was pretested for normality, linearity, multicollinearity, autocorrelation and homoscedasticity and the data found to meet most of these preconditions. The Pearson correlation analysis was employed to discern not only the strength but also the direction of the interrelationships involving the variables. The researcher tested the effect of the components of FDI on performance of manufacturing firms. The study developed one hypothesis and four sub hypothesis. The results revealed that there was a statistically significant relationship between FDI and firm performance. This imply that to achieve better firm performance, the government need to come up with policies geared to attracting more FDI into the key sectors of the economy. Keywords: Foreign Direct Investment, Firm Performance, Capital Flow, Advanced Production Technology, Marketing Expertise, Management Knowhow.

scholarly journals Foreign Direct Investment and Local Firm’s Performance

2021 ◽  
Vol 6 (6) ◽  
pp. 216-222
Author(s):  
M. D. Wanjere ◽  
M. Ogutu ◽  
M. Kinoti ◽  
X. N. Iraki
Keyword(s):  
Firm Performance ◽  
Direct Investment ◽  
Manufacturing Firms ◽  
Primary Data ◽  
Simple Linear Regression ◽  
Key Sectors ◽  
The Government ◽  
To Come ◽  
And Performance ◽  
Structured Questionnaire

This paper investigates the effect of FDI on performance of manufacturing firms in Kenya. Little is documented about the link between FDI and performance of local firms in Kenya . The study has sought to establish the overall effect of FDI on the performance-manufacturing firms in Kenya. The population of study comprised 100 companies registered with Kenya Association Manufacturing as at the time of data collection in 2019 and that had over 10 percent foreign ownership. The respondents were the CEOs of organization. The study used a structured questionnaire to collect primary data. Descriptive and inferential statistics were both used to analyze the data. Data was pretested for normality, linearity, multicollinearity, autocorrelation and homoscedasticity and the data found to meet most of these preconditions. The study developed hypothesis which was tested using simple linear regression to establish the effect of FDI on performance of manufacturing firms. The results revealed that there was a statistically significant relationship between FDI and firm performance. This imply that to achieve better firm performance, the government need to come up with polices geared to attracting more FDI into the key sectors of the economy.

scholarly journals Economic Performance of U.S. Multinational Manufacturing Firms: The Linkages between Foreign Direct Investment and Firm Strategy

2016 ◽  
Vol 10 (1) ◽  
pp. 240
Author(s):  
Pablo A. Garcia-Fuentes ◽  
Gustavo F. C. Ferreira ◽  
P. Lynn Kennedy ◽  
Felipe Perez
Keyword(s):  
Foreign Direct Investment ◽  
Firm Performance ◽  
Financial Performance ◽  
Direct Investment ◽  
Firm Strategy ◽  
Capital Intensity ◽  
Manufacturing Firms ◽  
Financial Strength ◽  
Strategic Factors ◽  
Marketing Intensity

This research uses an unbalanced date set for a sample of U.S. multinational manufacturing firms to evaluate the effect of the relationships between firm strategic factors (i.e. firm size, marketing intensity and capital intensity) and foreign direct investment (FDI) on firm’s financial performance. Specifically, this study evaluates the direct effect of FDI activity on firm performance, the indirect effect of FDI activity on firm performance, and the moderating effect of FDI activity on the relationships between strategic factors and firm performance. The results suggest that FDI activity plays an important role on the financial strength of U.S. multinational manufacturing firms, and reveal interesting interactions between FDI and some firm strategic factors and their positive effect on financial performance.

scholarly journals A STUDY OF FOREIGN DIRECT INVESTMENT ON MANUFACTURING INDUSTRIES IN SULTANATE OF OMAN

2021 ◽  
Vol 9 (3) ◽  
pp. 1-9
Author(s):  
Uvesh Husain ◽  
Sarfaraz Javed ◽  
Aisha Salim Al Araimi
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Quantitative Research ◽  
Secondary Data ◽  
Manufacturing Industries ◽  
Primary Data ◽  
Organizational Skills ◽  
Novel Technology ◽  
Industrial Sectors ◽  
Technology Marketing

The objective of this research is to find impact of foreign direct investment on manufacturing industries in Oman. The study utilized a quantitative research method which applied primary and secondary data obtained from Oman's World Bank database (1984-2018). The primary data were collected from a research questionnaire administered to 410 respondents from nine industrial sectors, namely: Textile, Petroleum goods, Electronics, Automotive, Food & Beverages, Agriculture & Fishery, Publishing, Chemicals and Pharmaceutics. The results of this study also revealed that the spillover impacts on domestic companies, like novel technology, marketing strategies, organizational skills, money, jobs, export growth, diversifying of economy and greater competition, lead to enhanced domestic market efficiency and boosted productivity in skill-spreading host economies with the highest impact accompanied with Capital and Technology spillover.

The Effect of International Financial Reporting Standards Adoption on Foreign Direct Investment and the Economy

2016 ◽  
pp. 342-361 ◽  
Author(s):  
Christopher Boachie
Keyword(s):  
Foreign Direct Investment ◽  
Financial Reporting ◽  
Direct Investment ◽  
Survey Study ◽  
International Financial Reporting Standards ◽  
Primary Data ◽  
Reporting Standards ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Financial Reporting Standards

This chapter examines the effect of International Financial Reporting Standards (IFRS) adoption on Foreign Direct Investment (FDI) and Ghanaian economy. It is a cross sectional survey study, with the population consisting of both Preparers and Users of financial statements. Stratified Random sampling method was adopted to gather primary data. Findings showed that IFRS has been adopted in Ghana and it is perceived that IFRS implementation promotes FDI inflows and economic growth. This study recommends all stakeholders to have full implementation to reap benefits of the IFRS and principle - based standards. The implication is that preparers need to work on their skills and expertise gap through training and development and to ensure that these standards are included in the academic and professional curricula. Moreover, regulatory bodies should monitor and enforce these standards but where local content is needed, convergence should be the solution.

Service firm performance and foreign ownership

2020 ◽  
Author(s):  
Jieun Choi
Keyword(s):  
Foreign Direct Investment ◽  
Firm Performance ◽  
Direct Investment ◽  
Service Sector ◽  
Service Performance ◽  
Service Firms ◽  
Entry Barriers ◽  
Factor Productivity ◽  
Service Firm ◽  
Service Sectors

Abstract Little is known about the performance of service firms and its relations with foreign direct investment (FDI), in part due to methodological and conceptual challenges in measuring service performance. This article suggests two possible measures of service firm performance: total factor productivity (TFP) and markups, with modification needed to improve those measures for the service sector. Using these measures, it examines service firm performance from 1997 to 2007 in Tunisia, where the service sector accounts for 60% of GDP but faces high protection and complex entry barriers. Then, it investigates whether variations in performance can be explained by FDI. It finds that FDI firms have higher TFP but lower markups than local firms, with significant variations across sub-service sectors.

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