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Lucy Kinyua

PhD Student in Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology, Kenya

Prof. Elegwa Mukulu

Director SHRD, Jomo Kenyatta University of Agriculture and Technology, Kenya

Dr. Waititu A. Gichuhi

Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya


Foreign Direct Investments (FDIs) are considered as key drivers of economic growth and development due to their multiple benefits in the developing countries. Kenya has attracted a large number of FDIs from various parts of the world.   Studies have been carried out on their impact on the Kenyan economy. However, no extensive research studies have been undertaken on the contribution of FDIs to entrepreneurship growth in Kenya. Various scholars have identified different exogenous factors that are associated with FDIs including; technology transfer, skills and experience, networks and infrastructure among others. This paper analyses the contribution of FDIs in influencing entrepreneurial intentions among the Kenyan employees through role modeling. The paper is based on a study carried out in Kenya to identify the role of foreign direct investment in promoting entrepreneurship growth through entrepreneurial intention among local employees. The study adopted a descriptive research design and targeted FDIs located within Nairobi County in Kenya. A multistage sampling technique was used with the first step involving sampling of FDIs and a sample of 30 firms was selected. The second step involved sampling of employees within the firms and a sample of 256 employees was selected. The instrument used in data collection was a questionnaire. To verify the validity of the instrument a pilot study was carried out and the Cronbach alpha reliability index of 0.70 was used. Various statistical techniques were used for data analysis. These included use of the Statistical Package for Social Sciences (SPSS) which is a research computing tool, t- tests and the Analysis of Variance (ANOVA). The findings revealed that foreign investors acted as role models towards their Kenyan employees within the FDIs which raised their entrepreneurial intentions. A growing body of literature argues that intentions play a critical role in the decision to start a new enterprise.

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