Do strategic motives affect ownership mode of Foreign Direct Investments (FDIs) in emerging African markets? : evidence from Ghana

• The objective of this study is to examine the influence of ownership, location, and internalization-specific factors, as well as strategic motives on ownership choice of foreign subsidiaries in Ghana. The authors use a quantitative methodology in order to statistically explore the relationships between dependent and independent variables by using the logistic regression model. The analysis was based on 115 manufacturing investments made by multinational corporations (MNCs) from different countries in 1994–2013. The results indicate that contractual risk leads to the choice of whollymowned subsidiary while cultural distance and country risk lead to the choice of the joint venture. In the case of the motives, efficiency-seeking and resource-seeking FDIs lead to the choice of the joint venture.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Keyword

Strategic motives

Foreign direct investments

Africa

Ghana

Business administration

Företagsekonomi

Publication and Content Type

ref (subject category)

art (subject category)