期刊名称:European Journal of Business and Social Sciences
印刷版ISSN:2235-767X
出版年度:2017
卷号:6
期号:7
页码:33-41
出版社:European Society of Business and Social Sciences
摘要:studies have shown that entry strategy is a key determinant onthe performance of foreign entrants in new markets. It maymean the success or failure of a foreign entrant. The Bankingsector in Rwanda has attracted several new entrants from theregion and beyond in the past few years who used different entrystrategies. Several studies have been undertaken on choice of entrystrategies by multinational corporations especially in developedeconomies. Few studies have been conducted on the effect of entrystrategies by foreign banks in Rwanda hence the motivation for thisresearch. The main objective of this research was to determine theeffect of entry strategies on the performance of foreign ownedcommercial banks in Rwanda. The specific objectives of the studywere to determine the effect of Greenfield, Acquisitions and Mergerentry strategies on the performance of commercial banks in Rwanda.The study adopted a descriptive research design with the targetpopulation of the study comprising seven foreign banks that hadentered and operated in Rwanda by the time of this study. A multicase survey was employed where 6 senior managers from each bankwere issued with questionnaires to fill supplying the primary data.Secondary data was obtained through the use of published reports,review of newspaper articles and review of bank annual reports. Thedata collected was analyzed through SPSS version 21 and multipleregression analysis was done to show the relationship between thevariables. The study found out that entry strategy has an effect onthe performance of commercial banks in Rwanda. From the findings,it was also revealed that holding Green field operations, Acquisitionand mergers to a constant zero, financial performance would be at0.455. A unit increase on Green field operations would lead toincrease in financial performance by a factor of 0.016, a unit increasein Acquisition would lead to increase in financial performance by afactor of 0.182 and a unit increase in mergers would lead to increasein financial performance by a factor of 0.153. The study recommendsthat new banks and foreign investors to Rwanda carefully evaluatetheir choice of entry strategy as it is a key determinant of banksuccess performance.
关键词:Green field operations; Acquisition; mergers bank and;success performance