Perceptions of Managers in Kuwait on the Role of the Multinational Corporations in Change in Kuwait

• Main Author: Al-Daeaj, Hamad S. (Hamad Saleh)
• Other Authors: Thibodeaux, Mary Shepherd
• Format: Others
• Language: English; Other
• Published: University of North Texas 1990
• Subjects: multinational corporations; International business enterprises > Kuwait; buisness managers; multinational corporations in Kuwait
• Online Access: https://digital.library.unt.edu/ark:/67531/metadc331424/

The purpose of this study is to investigate the perceptions of managers in Kuwait (both Kuwaiti and non- Kuwaiti) on the effects of multinational corporations (MNCs) in Kuwait and whether these effects were beneficial. The problem motivating this study is the effects that MNCs have on the social, cultural, political, legal, economic, business, and technological environments of their host countries, especially in developing nations. This study is based on a survey of the perceptions of 1,344 managers in Kuwait on the role of MNCs in changes in Kuwait. A review of the literature on MNCs and their relationships with their host countries is provided. This review focuses on four major environmental dimensions (Social-Cultural, Political-Legal, Business-Economic, and Technological) that are affected by MNCs. The factor analysis performed for this study supports this classification of the dimensions in the environment. An English questionnaire was developed from the list of major items in each of these dimensions. An Arabic version was developed using a "double-translation method." Both the English and Arabic versions of the questionnaire were pilot tested. The instrument proved to be reliable and valid. The study utilizes a 2 x 3 block design, categorizing subjects by nationality (Kuwaiti, other Arab, others) and type of organization (public and private). Since most of the variables in the study were measured using nominal and ordinal scales, mostly non-parametric statistics were used for data analysis. The major finding from this study was that managers in Kuwait perceive positive effects of MNCs on change in Kuwait, with the exception of the cultural environment. The favorable perceptions were about the MNCs1 effects on the change in business, economic, and technological environments in Kuwait. The results of the study should be beneficial to the Kuwaiti government, MNCs doing business in Kuwait, and also to cross-cultural researchers interested in the Middle East.