The paper is an evaluation of the influence of multinational corporations in Kenya and evaluates whether or not they have benefited Kenyan citizens. Many theories have been advanced in explaining the origin, development and motivation of multinational corporations’ investments globally. Multinational corporations (MNCs) are motivated by factors either internal to the investment or external to the location. The determinant of expansion of these firms may mean there is need to produce and sell goods and/or services in a number of countries. This is either through exports or through direct investment in these countries.
But first of all, what is a multinational corporation? A multinational company or business has offices, shops or factories in several countries. Multinational corporations are business corporations based in one particular country as the mother country with subsidiaries in other countries. They may also be defined in the context of the expertise and the origin of staff. They qualify as so if the extent of their staff establishment reflects a global representation both locally and internationally in their subsidiaries. This paper seeks to discuss the Internalization Theory in explaining the emergence of multinational corporations in a developing country-in our case, Kenya. Based on her experience, we shall discuss the import of the Internalization Theory in understanding the emergence of at least 2 multinational corporations.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Chandaria Enterprises
- Kenya Commercial Bank
- Conclusion
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to examine the relevance of Internalization Theory in explaining the rise of multinational corporations (MNCs) within a developing country context, specifically Kenya. It uses case studies of Chandaria Enterprises and Kenya Commercial Bank to illustrate the theory's application.
- The Internalization Theory and its application to MNC development.
- Characteristics of developing countries and their impact on MNC emergence.
- Case study analysis of Chandaria Enterprises as a Kenyan MNC.
- Case study analysis of Kenya Commercial Bank as a Kenyan MNC.
- Comparison of MNC behavior with local firms in Kenya.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter introduces the concept of multinational corporations (MNCs) and the various theories explaining their global expansion. It highlights the Internalization Theory, which emphasizes cost reduction through internalizing transactions, as the central framework for understanding MNC emergence. The chapter also defines MNCs and their characteristics, setting the stage for a case study focused on Kenya.
Chandaria Enterprises: This section (presumably) details the growth and development of Chandaria Enterprises, a Kenyan MNC. The summary would analyze how the company's strategies align with the principles of Internalization Theory, such as reducing transaction costs, maintaining innovation secrecy, and expanding into new markets. Specific examples of the company's internationalization efforts and their success in navigating the challenges of a developing country market would be highlighted. The discussion would likely demonstrate how Chandaria Enterprises leveraged firm-specific advantages to achieve its MNC status.
Kenya Commercial Bank: This section (presumably) explores the case of Kenya Commercial Bank, illustrating how its growth reflects the Internalization Theory. The summary would delve into the bank's expansion strategies, its management of economic interdependencies, and its competitive advantages in the Kenyan and potentially international financial markets. Particular attention would be given to how the bank's actions align with or deviate from the typical MNC behavior patterns described in the introduction, particularly regarding capital intensity, diversification, and profit repatriation. The analysis would emphasize the bank's unique challenges and successes within the Kenyan context.
Schlüsselwörter (Keywords)
Internalization Theory, Multinational Corporations (MNCs), Developing Countries, Kenya, Chandaria Enterprises, Kenya Commercial Bank, Firm-Specific Advantages, Transaction Costs, Economic Interdependencies, Case Study, International Business.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this paper?
This paper examines the relevance of Internalization Theory in explaining the rise of multinational corporations (MNCs) in developing countries, specifically Kenya. It uses case studies of Chandaria Enterprises and Kenya Commercial Bank to illustrate the theory's application.
What theories are discussed?
The primary theory discussed is Internalization Theory, which focuses on how firms reduce costs by internalizing transactions. The paper explores how this theory applies to MNC development in a developing country context.
What are the objectives of this paper?
The paper aims to analyze the Internalization Theory's application to MNC development, consider the impact of developing country characteristics on MNC emergence, and conduct case studies of Chandaria Enterprises and Kenya Commercial Bank as Kenyan MNCs. A comparison of MNC behavior with local Kenyan firms is also included.
Which case studies are used?
The paper uses two case studies: Chandaria Enterprises and Kenya Commercial Bank. These illustrate how Kenyan companies have achieved MNC status and how their strategies align with (or deviate from) the principles of Internalization Theory.
What aspects of Chandaria Enterprises are analyzed?
The analysis of Chandaria Enterprises likely focuses on its growth strategies, alignment with Internalization Theory principles (like reducing transaction costs and maintaining innovation secrecy), its internationalization efforts, and how it navigated challenges in a developing country market. The firm-specific advantages contributing to its MNC status are also highlighted.
What aspects of Kenya Commercial Bank are analyzed?
The analysis of Kenya Commercial Bank explores its expansion strategies, management of economic interdependencies, and competitive advantages in Kenyan and potentially international markets. It examines how the bank's actions align with typical MNC behavior patterns (capital intensity, diversification, profit repatriation), considering its unique challenges and successes within the Kenyan context.
What are the key themes?
Key themes include Internalization Theory, MNC development in developing countries, the role of firm-specific advantages, transaction costs, economic interdependencies, and a comparative analysis of MNCs and local firms in Kenya.
What is the structure of the paper?
The paper includes an introduction, case studies on Chandaria Enterprises and Kenya Commercial Bank, a conclusion, and a list of references. Chapter summaries provide an overview of each section.
What are the key words associated with this paper?
Key words include: Internalization Theory, Multinational Corporations (MNCs), Developing Countries, Kenya, Chandaria Enterprises, Kenya Commercial Bank, Firm-Specific Advantages, Transaction Costs, Economic Interdependencies, Case Study, International Business.
- Quote paper
- Mbogo Wa Wambui (Author), 2011, The Emergence of Multinational Corporations in Kenya. A Discussion of the Internalization Theory, Munich, GRIN Verlag, https://www.grin.com/document/322605
