The Influence of Bilateral Trade Agreements on Mode of Market Entry Choice of Resources Seeking Chinese Firms Operating in Nigeria
Degree: Doctoral Thesis
Programme: Business Administration
Authors: Iwaloye Ojo Olukayode
Supervisors: Doctor Michael Trimarchi, Visiting Professor, University of Saint Joseph
In the past three decades there have being an increase in the number of Bilateral Trade Agreements (BTAs) globally. These agreements involve huge human and financial movements and are essentially based on trade and investment. This phenomenon has brought new dimension to global business environment by changing the landscape in which firms from emerging markets operate in another emerging market. In the light of this, this dissertation is to examine how bilateral trade agreements provisions influence choice of foreign market entry mode of resource seeking Chinese Multinational Enterprises operating in Nigeria.
This study adopts a qualitative design, collecting data using semi-structured interviews. The data are analyzed with content analysis and explanation building to identify themes through application of replication logic. The data obtained from the interviews regarding the research questions are presented and discussed as major findings and adopted for the creation of the new model for the study of resources seeking firm’s choice of market entry modes in emerging markets.
The model developed in this dissertation makes a contribution to theory for the study of market entry modes of MNEs from developing countries entering another developing country. In this case, Chinese resources seeking multinational firms entering Nigeria. Elements of Dunning’s OLI theory, Resources Dependency Theory, and Institution theory extended for the purpose for the theory development process. This investigation also provides important information to assist state policy actors in their development of bilateral trade agreements between China and Nigeria. Implications for firms and their involvement in developing countries and with framework where bilateral trade agreements exist are also provided.