DETERMINANTS OF MANUFACTURING LOCATION CHOICE DECISIONS AMONG MANUFACTURING MULTINATIONAL CORPORATIONS IN KENYA
Abstract
Multinational corporations (MNCs) contribute significantly to the global economy and the internationalization and globalization of businesses. The last decade has witnessed increased relocation of manufacturing activities by MNCs from the Kenyan market. A key aspect of the strategic and logistical decision-making for manufacturing firms is the location of production facilities. Although a great deal of research literature is available on the determinants of manufacturing location choice decisions, research on factors influencing relocation of manufacturing activities for MNCs based in Kenya is limited. The purpose of this study is to identify determinants of manufacturing location choice decision for Kenyan-based manufacturing MNCs and provide insight on factors that are contributing to increased relocation of MNCs manufacturing activities out of Kenya. The study adopted a descriptive research design and use of semi-structured questionnaires, secondary data and computer-based data review as data collection methods. 27 firms representing 12.6% of the target population were considered for the study. Data was analyzed through use of descriptive and inferential statistical analysis. Results from the study indicate that production costs and infrastructure factors significantly influenced manufacturing location choice decisions.
Keywords: Location determinants, multinational corporations, production costs, infrastructure
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DOI: http://dx.doi.org/10.61426/sjbcm.v1i2.66
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