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International Diversification Impact on Firm Performance: A Study of the East African Community (EAC) Firms

Author

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  • Aniceth Kato Mpanju

    (Tanzania Institute of Accountancy)

Abstract

The major purpose of this research was to analyse the impact of internationalisation strategy on industry performance among the East African Community (EAC) firms. We used a sample to 279 domestic firms and multinational companies (MNC?s) subsidiaries in the manufacturing sector, service sector and agriculture sector. The impact of internationalisation strategy on firm performance was investigated by logistic regression analysis using statistical package for social sciences (SPSS). The results confirm that performance is perceived to be stronger by firms with foreign connections as compared to domestic firms, and that the MNC?s subsidiaries experience better (sustainable development) performance of their functions as compared to local firms.

Suggested Citation

  • Aniceth Kato Mpanju, 2019. "International Diversification Impact on Firm Performance: A Study of the East African Community (EAC) Firms," Proceedings of International Academic Conferences 9412215, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:9412215
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    File URL: https://iises.net/proceedings/iises-international-academic-conference-paris/table-of-content/detail?cid=94&iid=027&rid=12215
    File Function: First version, 2019
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    More about this item

    Keywords

    EAC firms; Firm performance; International diversification; Internationalisation theories; MNCs;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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