STRATEGIC DRIVERS OF TRANSNATIONAL ACTIVITIES

Abstract

Against the backdrop of the globalisation of the economy, country states like Mauritius, adopting an open economy, face heightened risks of a deterioration of their balance of payments. Mauritius' traditional economic pillars are threatened. Economic growth is limited by its market size and resources. Sound economic policy demands that firms build export capacity and penetrate regional and world markets. Consideration of the fundamentals feeding the strategic decisions of multi-national companies in Mauritius, and identification of the restraining factors were therefore examined in this research. Following a literature review, a qualitative study, comprising in-depth interviews with a sample of the heads of the Top 100 Corporations uncovered the drivers for, and challenges to, transnational activities. The research confirmed the universality of drivers and challenges, unravelled the linkage with the micro- and macro-economic environment and pointed to specific issues related to the power of customers, the insular mindset and partnerships