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.
Description
This is a dissertation.