FACTORS INFLUENCING MARKET ENTRY STRATEGY OF FOREIGN COMPANIES INVESTING IN ETHIOPIA: CASE OF MANUFACTURING COMPANIES

Abstract

The purpose of this study is to address what factors influence foreign manufacturing companies to invest in Ethiopia, these factors could be internal, external or the combination of both factors that can influence companies to choose direct investment strategy in the manufacturing sector. The study achieved the ob-jective of the research with the help of questionnaires for the foreign manufacturing company’s key lead-ers and interview with Ethiopian investment Commission key informants. To further clarification on the subject matter, reviewing of related literature has a great place. For greatly accomplished the study, de-scriptive methods of research design used and the significance of each factor tested using t-test table in-cluding measure of central tendency with mean and also the nature of distribution calculated by using standard deviation. As a result after thoroughly present and analyzing the data obtained from respond-ents the researcher clearly put the findings, and conclusion then provides recommendation for the Ethio-pian Government policy makers to work on the adjustments needed by the foreign companies and also, to work on major factors that can influence foreign companies to invest in Ethiopia. As a result it is highly believed that the study will also serve as input for policy makers and other stakeholders who might also be interested to make further studies