Year: 2000
Type: dissertation
Abstract: This study investigates four key dimensions o f international joint venture (JV) activity \nin Ghana and Nigeria: strategic motives, host country location factors, finance and \nperformance. These dimensions are explored in a multi-method empirical study. \nDrawing on official annual aggregate and project level data, the trends and patterns of \nFDI in Ghana and Nigeria are examined across several characteristics, trends over \ntime, ownership type of FDI, origin of foreign investor, geographical location of \nprojects and distribution by sector. The result shows that the more preferred mode of \nentry for FDI is through the equity joint venture. \nPrimary data was collected by means of a self-administered questionnaire survey from \na cross section sample of 57 JVs in Ghana and Nigeria, with partners from Western \nEurope, North America and Asia/Pacific. First, the relative importance of a set of \nstrategic motives and host country location factors influencing foreign investors’ \ndecisions to form JVs in Ghana and Nigeria are identified. The main strategic motives \nof the foreign partners are to overcome government-mandated barriers, risk and cost \nsharing and to facilitate international expansion. The study finds government policy \ntowards foreign investors, political stability and market size as the main location \nfactors. Exploratory factor analysis is employed to identify the underlying dimensions \nof strategic motives and host country location factors for the JVs. Hypotheses are then \ntested (using t-test or Anova) by considering strategic motives and host country factors \nin terms of the characteristics of the sample. Second, the manner in which JVs are \nfinanced, the relative importance of barriers to JV investment finance and the \ndeterminants of the financial structure of JVs in Ghana and Nigeria are examined. \nHypotheses are tested using contingency table analysis and t-test on the relative effects \nof the barriers and the factors influencing the capital structure of JVs. Finally, \nmeasures and determinants of performance are examined. A multiple regression \nanalysis is conducted to identify the main predictors of successful performance for JVs \nin Ghana and Nigeria. The study identifies capital adequacy, partners’ capabilities and \ncongruity of motives and goals of the partners as important determinants of \nperformance. A paired sample t-test was also conducted to compare the performance of \nJVs with host government partners and those with private sector partners, the results \nindicate that JVs with private sector partners are perceived to perform better. \n
Author: Agyenim Boateng
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1488570079