Challenges Faced by International Companies Making Entry to Developing Countries: A Case of Uganda

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Date

2023

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Uganda Christian University

Abstract

This study addresses the challenges encountered by international companies when entering developing countries, using Uganda as a case study. While numerous studies have explored international market entry, there has been a relative lack of focus on the specific challenges faced by firms entering a developing nation like Uganda. This research aims to shed light on this gap by examining the obstacles international companies confront when establishing operations in Uganda. The study's dual objectives are: first, to analyze the distinct characteristics of international companies making entry into Uganda, and second, to delineate how these challenges influence their successful establishment and growth. The findings of this study underscore that international companies entering Uganda encounter multifaceted challenges. These challenges encompass navigating limited infrastructural development, adapting to local market dynamics, and managing regulatory complexities. Notably, the study reveals that successful entrantsdemonstrate a proclivity for adaptive strategies that allow them to align with Uganda's unique business environment. Moreover, a key characteristic that emerges is the necessity for international companies to cultivate local partnerships and engage in knowledge transfer to surmount these challenges effectively. Additionally, the study discerns a strong correlation between the characteristics of international companies and their ability to overcome entry barriers. Those with prior experience in similar developing markets exhibit greater resilience, leveraging insights gained from analogous contexts. Furthermore, companies that tailor their strategies to accommodate Uganda's specific market conditions tend to achieve more rapid and sustained growth. The implications of this research underscore the need for proactive measures to support international companies seeking entry into developing countries like Uganda. Policymakers should prioritize infrastructure development, streamline regulatory procedures, and establish platforms for knowledge exchange between incoming firms and local entities. Additionally, international companies should focus on building partnerships with local businesses to foster mutual growth and understanding. Hence, this study illuminates the challenges faced by international companies entering Uganda and provides insights into the characteristics that contribute to their success in this context. By addressing these challenges and leveraging the identified success factors, both international companies and host countries can foster a more conducive environment for mutually beneficial engagement. Keywords: international companies, developing countries, market entry, challenges, Uganda.

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This is a dissertation.

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