Throughout the years, different theories and models have been developed regarding
multi-national enterprises' (MNEs') entry into foreign markets. One such model is the
Organisational Model, identifying three different types of enterprise, each selecting a
different mode of market entry during foreign market expansion. These are: massproduction
enterprises, disaggregate-production enterprises and project-based
enterprises. This model was based on studies focusing mainly on the US, Europe
and Asia. Research indicates, however, that MNEs increasingly identify sub-Saharan
Africa (SSA) as a region for possible expansion. In view of persistent risk within the
SSA region, this study's focus is on determining which entry modes MNEs use when
entering a perceived high-risk market in SSA.
This research study focused on MNEs that have expanded or are currently
expanding into a perceived high-risk country in SSA. A qualitative research design
was selected, applying an in-depth case study analysis to six different MNEs two MNEs representing each type of enterprise as categorised by the Organisational
Model. Semi-structured personal interviews were conducted with each participant.
Each interview focused on elements relating to the MNE's perception of, and
approach to selecting entry mode into, high-risk markets.
Findings predominantly did not find support for the Organisational Model, indicating
that MNEs entering perceived high-risk markets in SSA preferred different entry
mode strategies and approached risk consideration differently. Some findings did
confirm the literature, by indicating that MNEs consider country risk when entering a
foreign market in SSA. / Dissertation (MCom)--University of Pretoria, 2016. / Business Management / MCom / Unrestricted
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:up/oai:repository.up.ac.za:2263/60522 |
| Date | January 2016 |
| Creators | Van Coller, Sunel |
| Contributors | Vogel, Adolf Johan, punkprinses777@gmail.com |
| Publisher | University of Pretoria |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Dissertation |
| Rights | © 2017 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
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