Inflow of Foreign Direct Investment (Fdi) and Management Approaches of Multinationals in Nigeria

Foreign Direct Investment (FDI) Management Approaches Multinational Corporations (MNC)

Authors

  • Cosmas C. Alugbuo
    Alugbuo@gmail.co
    Department of Management Faculty of Management Science Imo State University Owerri
  • Dr. Aham Ikwumezie Department of Management Faculty of Management Science Imo State University Owerri
  • Dr. Chigozie Ugochukwu Okoro Department of Hospitality and Tourism Faculty of Management Science Imo State University Owerri
June 25, 2022

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The study investigated the implication of foreign direct investment flows in the prevalence of management approaches in thirty multinational organizations in Nigeria. The multivariate regression analysis was employed for the identification of factors in the Nigeria investment environment (other than fiscal performance) that may have strong mediating impact. Results from the analysis showed that the predominant staffing strategy in most multinational organizations with FDI presence skew to polycentric (β = 0.28; p < 0.05) staffing approach more than to ethnocentric (β = 0.03; p < 0.05). This can be explained by the prevalence of host country staffers occupying strategic position in host country’s offices. Manager’s perception of employee effectiveness is largely influenced by the employee level of aptitude and the employee tacit personality traits.