Proceedings of the 50th International Academic Conference, Paris

INTERNATIONAL DIVERSIFICATION IMPACT ON FIRM PERFORMANCE: A STUDY OF THE EAST AFRICAN COMMUNITY (EAC) FIRMS

ANICETH KATO MPANJU

Abstract:

The major purpose of this research was to analyse the impact of internationalisation strategy on industry performance among the East African Community (EAC) firms. We used a sample to 279 domestic firms and multinational companies (MNC’s) subsidiaries in the manufacturing sector, service sector and agriculture sector. The impact of internationalisation strategy on firm performance was investigated by logistic regression analysis using statistical package for social sciences (SPSS). The results confirm that performance is perceived to be stronger by firms with foreign connections as compared to domestic firms, and that the MNC’s subsidiaries experience better (sustainable development) performance of their functions as compared to local firms.

Keywords: EAC firms, Firm performance, International diversification, Internationalisation theories, MNCs

DOI: 10.20472/IAC.2019.050.027

PDF: Download