Foreign direct investment in international technology transfer among mobile telecommunication firms in Kenya

Abstract

In the era of globalization, the main important player to the prosperous world economy was the expansion of transactions across the border which was associated with techno-economic relations. Foreign Direct Investment has extended quickly, becoming an increasingly significant aspect in host countries and the global community. Furthermore, FDI generally will boost economic growth and provide better living standards in specific nations. Regardless of the outcomes of foreign direct investment, most developing nations panic that by opening up domestic markets to competition as well as external investment less constraints. They fear that it may lead to losing regulating their planned industries including the telecommunications sector. The major goal of this survey was the determination of FDI roles in global technology transfer among mobile telecommunication firms in Kenya. The study adopted a detailed cross-sectional assessment as its study design. The study population involved all the three major mobile companies operating in Kenya. The primary data utilized in the investigation was obtained through self-administering of questionnaires. The facts were analyzed with the aid of a software that is Statistical Package for Social Sciences (SPSS). The results were presented largely in form of tables and figures. From the results, several factors actually influence the mobile firms‟ decisions on external technology acquisition and this includes compatibility of new technology, existing ties with the partner companies, technological change life cycle stage, and intellectual protection. Foreign direct investment was found to be essential to the telecommunications companies as it helped them to be competitive, innovative, enhance managerial expertise, upgrade their marketing expertise which results in enhanced job opportunities. The study thus recommends for a need of the government to create an enabling business environment to encourage more foreign direct investment in the country. By doing so, it may spur international technology transfer which will enabled the mobile telecommunications firms to increase their productivity growth, achieve a high increase in customer base due to the delivery of high quality services and products and/or strengthen its technological capability and avoidance of high costs of internal development in the long run.