South African MNEs in Africa

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Impact of Culture on FDI from Emerging MNEs

The South African Multinational Enterprises (MNEs) have become major sources of foreign direct investment (FDI) in Africa of late.

This book is an analysis of the strategies that the South African MNEs employ as they enter the African market.

It further explores the role of culture in influencing the FDI decisions such as entry strategies, location selection and the type of investment.

In this regard, the book examines how the South African MNEs are influenced by the South African culture as they invest in Africa.

An integrated theoretical framework comprising the transaction cost theory, Uppsala model, eclectic paradigm and the distance framework was adopted.

The Hofstede and the Global Leadership and Organizational Behaviour Effectiveness (GLOBE) cultural frameworks formed the basis of the study.

The Kogut and Singh formula was used to estimate South Africa’s cultural distance (CD) from the rest of Africa.

This book is therefore ideal for analyzing the intra-Africa cultural and investment dynamics and is ideal for those pursuing cross-cultural studies.

The book is also aimed at South African MNEs in particular in assisting them to improve their penetration and spread in Africa.

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