MODE OF ENTRY OF MULTINATIONAL CORPORATION AND THEIR PERFORMANCE IN THE NIGERIAN MARKET
By
OTOKITI BISAYO OLUWATOSIN CUGP100236
Presented To
Department of Business Administration and Management
ABSTRACT
This study investigates the mode of entry of multinational corporation and their
performance Nigerian market. Research on the entry mode of multinational companies
(MNCs) to Nigerian market has been one of the major topics in the international
business, and the performance factor has been regarded as one of the major factors to
explain the entry mode selection of MNCs. Based on the developing nature of the
Nigerian market, MNCs can enter a market with Franchising, Licensing agreement,
Exporting, joint venture or a wholly owned subsidiary, and Turnkey. This study test
reasons for entering in the Nigerian market, modes of entering, challenges faced by
multinational during entry and finally the impact of mode of entry of MNCs and their
performance in the Nigerian market. The research adopted the survey method, with the
use of the Questionnaire.
The results from the analysis on the first hypothesis show that a MNCs come into the
Nigerian market for different reasons with different modes peculiar to their organization.
The second hypothesis indicated that there are various challenges MNCs faced when
entry into Nigerian market .
And the third hypothesis was supported indicating significant influence of mode of entry
on the performance of MNCs in Nigerian markets.
TABLE OF CONTENTS Pages
Cover Page
Title Page - - - - .i
Certification - - - - ii
Declaration - - - - - - - .iii
Dedication - - - - - - - ..iv
Acknowledgements - - - - - - - .v
Abstracts - - - - - vi
List of Tables - - - - ..
CHAPTER ONE: INTRODUCTION
1.1 Background of Study - - - - - - 1
1.2 Statement of Research Problem - - - - - ..3
1.3 Objectives of the Study - - - 4
1.4 Research Questions - - - 4
1.5 Research Hypotheses - - - - - - 5
1.6 Scope of Study - - - .5
1.7 Significance of Study - - - 5
1.8 Methodology - - - - - - .5
1.9 Limitation of Study - - - 6
1.10Outline of Chapters - - - 6
1.11Operationalization - - - - - - ..7
1.12Definition of Terms - - - 7
CHAPTER TWO: LITERATURE REVIEW 2.1
Introduction - - - - .9
2.2 Conceptual Framework - - - .9
2.2.1 Multinational Corporations - - - - - 10
2.2.1Nature and Origin of Multinational Corporation - - - .10
2.2.2 Definition of Multinational Corporation - - - - .11
2.2.3 Features of Multinational Corporation - - - - - 12
2.2.4 Advantages and Disadvantages of Multinational Corporation - - - - ..14
2.2.5 Cost cum Benefits of Multinational corporations - - - - .16
2.2.6 Modes of Entry - - - 18
2.2.7 Selection Mode - - - - - - - - - - - ..19
2.2.8 Indirect Market Entry - - - ..19
2.2.9 Direct Market Entry - - - .21
2.2.10 Strategies Used By Multinational Corporations During Entry - - .22
2.2.11 Rules of selecting Entry mode - - - - ..29
2.2.12 Reasons for Entering into the Nigerian market - - - - - - - ..30
2.3 Theoretical Framework - - - - - 30
2.3.1 Theories of Multinational Corporation - - - - - - - - - .30
2.3.2 The Theory of Internationalisation of Multinational Corporations - - - - .31
2.3.3 Motives of Internationalisation - - - - - - - - - 31
2.3.4 Reasons for firm internationalisation - - - - - - - - 35
2.3.5 Success and Failure in the Internationalization Process - - - .35
2.3.6 Industrial Organization Theories - - - - 36
2.3.7 Transaction Cost Theory - - - 39
2.3.8 Basic Transaction Costs Theory - - - - .40
2.3.9 Application Of Transaction Cost Theory To The Multinational Firm - - - - - 45
2.3.10 The Relationship Between Internationalization Theories And Market Entry
Modes - - - - ..46
2.4 Empirical Framework 2.4.1 Entry Mode of MNCs and their Performance - - - - ..
