It is more than 40 years since joseph nye, the american political scientist, wrote his seminal article on multinational corporations for foreign affairs, the journal on international politics produced by the us council on foreign relations. The following is a list of prominent companies and organizations with their main headquarters in nairobi. It is therefore a corporation that operates in a multiplicity of environments. According to wood and robertson 2004 the age of globalization has both. They may also be defined in the context of the expertise and the origin of staff. When most people hear the term multinational corporation, mnc they probably think of a powerhouse of a company headquartered in. Read this article to learn about the meaning, features, advantages and limitations of multinational corporations mncs. They have devised imperialistic means to solicit lowtax payments to host governments. In this article we will discuss about the role of multinational corporations in the economic development of a country. Multinational companies mncs have their central head office in the home country and secondary offices, facilities, factories, industries, and.
The home and the host country relations will be studied with examples. List of kenyan parastatals state corporations infohub. Multinational corporations, investment and natural resource. Pdf the multinational corporation mnc is the agency through which. The role of multinational corporations in the democratic. Highly competitive and strongly supported by the state, chinese multinational corporations are embarking on an acquisition drive that is capturing key resources and market share across the developing world. The aims of this, is to find out the impact of multinational companies in the economic growth and development. Challenges facing multinational corporations sample essay. Multinational corporations in world politics, was addressing what at the time was a growing. Fu chengyu, ceo chinese national offshore oil corporation, february 2006 1 i. Multinational company usually represents a longterm commitment to the host country and. Coincidentally, they also turn out to be some of the best companies in kenya. Economic impact of mncs on development of developing nations ondabu ibrahim tirimba, george munene macharia phd finance candidate, jomo kenyatta university of agriculture and technology abstract multinational corporations do not come into being from thin air. In many respects it is africa, an area rich in natural resources and underexploited.
The emergence of multinational corporations in kenya. Multinational corporations mncs play a pivotal role in the development on many emerging market, and have consequently received due attention by scholarly research in economics and by policy analysts. The negotiations of the united nations code of conduct on. Descriptive research technique was used in the study which enables description of the phenomena. The capital, nairobi, is a regional commercial hub. With their african or east african operations centered in kenya, the countrys business outlook is greatly enhanced. The study was guided by the following objectives, to determine the various factors favoring the establishment of multinational enterprises like the cocacola company in host nations like kenya, to establish the various contributions of multinational enterprises like the cocacola. Nov 18, 2016 most of the challenges facing multinational corporations are caused by the rapidly changing business environment across the globe. Despite being plagued by economic uncertainty and socioeconomic issues, africa remains a promising longterm growth opportunity. Multinational corporations through linkages and the. Kenya is a country in africa and a founding member of the east african community eac. A discussion of the internalization theory chandaria enterprises and kenya commercial bank mbogo wa wambui essay economics international economic relations publish your bachelors or masters thesis, dissertation, term paper or essay.
Multinational companies or corporations mnc list, features. Multinational corporations have been protagonists of the globalization process even though this has drain strong. Multinational corporations and economic development in. The multinationals of the global century, the latest developments they achieved and the differences they have with their ancestors will be clarified. They disadvantage smaller domestic firms and transfer money that could be. Foreign capital plays a very important role in the growth and development of most countries, at least in the early stages. Multinational companies mncs have their central head office in the home country and secondary offices, facilities, factories, industries, and other such assets in other countries. The case of castel winery company in ethiopia by mekoyet gashu abstract.
There are also known as transnational corporations. Chandler 1990 noted that these multinational corporations re. Africa presents unique challenges for multinational corporations. Pdf this article focuses on key characteristics of multinational companies mncs in a global business environment. An enterprise operating in several countries but managed from one home country. List of companies and organizations based in nairobi. The following is a list of prominent companies and organizations with their main.
The study covers kenya as the universe of the study. Mncs conduct a significant proportion of their operation in other countries. The study established that the global financial crisis indeed pose various challenges to the multinational corporations in kenya. List of 15 best international companies in kenya in 2020. The huge disparities in markets across the world makes it difficult for multinational corporations to find a better footing and grow their revenue bases considering that they target a global audience. Anything of value qualifies for this label, ranging from a partnership, office space, or retail product. Concept and objective the term multinational corporation mnc can be defined and described from differing. The multinational corporation mnc is the agency through which advanced technology is transferred. This has resulted in the multinational companies negating on some of their corporate social responsibilities. Multinational corporations and the fight against malaria in africa. Burundikenyarwandatanzaniauganda multinationaleast.
This work will also aim at examining whether these problems are functions of the multinational corporations or whether there are intervening variable responsible for these problems. The following is a list of multinational companies and organizations, with their african. Multinational corporations and economic development in africa. Multinational corporations are not enthusiastic to help in economic development of africa. Effects of the global financial crisis on corporate social. In kenya, multinational companies are facing a myriad of problems due to the global financial crisis. Market entry strategies used by multinational corporations to. Multinational corporations mncs are denying kenya billions of taxes in revenue by evading taxes through a variety of ways including dodging income tax on the hefty perks for their expatriates and use of opaque structures that render it very difficult for the taxman to collect his dues, a report has revealed. To determine the effect of the brand name on the performance of multinational corporations operating in kenya. Pdf multinational corporations, taste transfer and. Pdf impact of multinational corporations on developing. This study sought to bridge the gap of mnc by adding more literature on factual findings from a developing country context such as kenya. Economic impact of mncs on development of developing nations. Kenya electricity generating company kengen mumias sugar company.
List of kenyan parastatals state corporations infohub kenya. A multinational company or business has offices, shops or factories in several countries 1. Multinational corporations in the african economies. They undermine development and exacerbate inequality and poverty. Multinational corporations, investment and natural. Significant among these activities are their extension of opportunities for earning higher incomes as well as the consumption of improved quality goods and services to people in poorer regions of the world. A multinat ional com pany mnc can be defined as an enterprise that engages in foreign.
They disadvantage smaller domestic firms and transfer money that could be put towards poverty eradication into the hands of the rich. Multinational corporations in nigeria v examines the positive effects of multinational corporations in nigeria, while the last section is the conclusion. Multinational corporations are business corporations based in one particular country as the mother country with subsidiaries in other countries. However, in order to grasp the effect of this impact, a survey of the national economy will be necessary for acquaintance.
Local industries were mainly companies with a large share of foreign capital, but not linked to any transnational corporation. To establish the strategies adopted by multinational corporations to cope with competition in kenya, forty questionnaires were administered to senior managers of mncs targeting 19 percent of the total population of 2 mncs in kenya. Five american multinational corporations are the latest firms to set base in kenya, increasing the number of u. Multinational corporations mncs and enterprises mnes a read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Strategies adopted by multinational coporations in kenya to cope. Some of the worlds largest multinational corporations have set their regional headquarters in kenya over the past few years. The study found out that information communication technology, supplier partnership, strategic outsourcing and procurement risk management had positive influence on organizational performance. It was centered on principles of employment creation, poverty and. They manage production establishments or deliver services in at least two countries. Multinational corporations or multinational companies are corporate organizations that operate in more than one country other than home country. As the parent companies are facing a liquidity shortage, most multinational companies have been forced to cut on spending.
In the third chapter, the impact of multinational corporations on international relations will be examined. These actions engender conflicts between multinational corporations and their host governments. At the same time, international companies need to enhance their understanding of the development process in. To establish the effect of the brand element on the performance of multinational corporations operating in kenya. Multinational corporations columbia business school. Advertising and transnational corporations in kenya wiley online. The challenge for african governments and donor agencies, however, is to more clearly understand how csr programs contribute to the development process. Multinational corporations mncs engage in very useful and morally defensible activities in third world countries for which they frequently have received little credit. Multinational corporations and the fight against malaria in. This study aimed to look at the role of procurement practices on organizational performance of multinational companies in kenya. Chinese multinational corporations in africa chris alden and martyn davies chinas goal is not to overturn the world order but instead to participate in this order and to reinforce it and even to profit from it.
Rosman md yusaff2, altaf hussain3, jawad hussain4 1, 3, 4phd student, faculty of management and human resource development, university technology. They have their home or headquarters in one country and owns and run subsidiaries in other countries. This will be in a comparative form to enable a broader perspective of the economys relative weight and how much of the mnc. This research focuses on the globalization phenomenon and the development of multinational corporations in kenya.
The economy of kenya is the largest by gdp in east and central africa. A multinational corporation owns and manages business in two or more countries. Multinational east african community eac payment and settlement systems integration project countries. Today, particularly in the age of the globalization, where more and more. Multinational corporations and economic development. Multinational corporations mncs are companies with plants or direct investments in one or more foreign countries. Approaches for recruiting senior personnel by multinational. The main tool for data collection for this study included a questionnaire for the major multinational corporations operating in kenya, these were a total of 20 companies.
Multinational corporations, taste transfer and underdevelopment. A multinational corporation is known by various names such as. List of companies and organizations based in nairobi wikipedia. The study was able to meet this objective by employing a descriptive research design. There is no question that multinational companies investing in africa have the resources, and the responsibility, to contribute to africas development.
This is highlighted by the number of companies and organizations headquartered in the city. Multinational corporations from developed and developing economies alike. Nairobi is the business and financial centre of kenya. One of the significant challenges faced by contemporary business organizations as they grow in to other nations, is the process of adapting to their existing diverse culture. This is a list incomplete of multinational corporations, also known as multinational companies and worldwide or global enterprises these are corporate organizations that own or control production of goods or services in two or more countries other than their home countries. The following companies did not match exactly but may also be of interest to you. The research findings show that firms that want to internationalize must decide on a fitting mode of entry into a foreign market in order to make the best use of their resources. A multinational company is one which is incorporated in one country called the home country. Cola company, a multinational corporation, to kenya s economy. Africa is finally creating its own multinational corporations. Market entry strategies used by multinational corporations. This paper casts a critical look at multinational corporations and their impact on natural resource management particularly in developing countries such as kenya. This article focuses on key characteristics of multinational companies mncs in a global business environment.
Multinational companies in kenya including nairobi, and more. Mnc can have a positive economic effect on the country where the business is taking place. Multinational corporations corrupt practices affect the south i. Economic impact of mncs on development of developing. Pdf multinational corporations mncs and enterprises mnes.
List of kenyan parastatals state corporations the following is a list of all parastatals in kenya showing their respective government ministries. Multinational corporations and the nigerian economy. Social sciences, general corporate social responsibility analysis forecasts and trends health aspects social aspects economic development international business enterprises malaria control marathons poverty. Globalization, development and multinational corporations. The major theme would be to show positive effects of most mncs in kenyas economic development in the background of alarming complaints against mncs in. They have, moreover, neglected the role of multinational corporations in the drc conflict. However, kenya argued that the contracts were awarded irregularly and were marred with corruption and the process did not follow the 8 see generally, batware, b. Share the worlds resources stwr according to a number of reports, multinational corporations play an important role in continuing the conflicts that have led to mass atrocities in the dcr.
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