The Impact of Inward Foreign Direct Investment Spillovers on Small and Medium Enterprise Performance (Case Study: Zain Telecommunication Company)


Authors : Dr. Sara Mohamed Awaad

Volume/Issue : Volume 7 - 2022, Issue 12 - December

Google Scholar : https://bit.ly/3IIfn9N

Scribd : https://bit.ly/403fQxb

DOI : https://doi.org/10.5281/zenodo.7578004

Abstract : This paper provides theoretical and imperical insights into the Many Sudanese small and medium-sized enterprises have struggled over the last three decades; some of these enterprises went out of business while othersare still struggling and desperate to have new economic reform that provides them with favorable policies as well as greater access to foreign investments spillovers, therefore in responses to that this study is aimed to explore the impact of foreign direct investment Spillovers on small and medium enterprises performance case Zain telecom Sudan. The study thought to establish the impact of foreign direct investment spillovers namely (Finance, Technology & Skill spillovers) on small and medium enterprises' performance. A sample of 30 respondents was selected from juniors, seniors, and top staff who worked at Zain in various departments, including marketing, human resources, finance, and customer services, using a convenience sampling technique in which a Structured questionnaire was distributed among them. To test the significant impact, Statistical Package for Social Science (SPSS) used multiple linear regression to test the significant impact. The finding suggests both Finance and Skill spillovers have a statistically significant impact on small and medium enterprises' performance; however, it showed that Technology spillovers have no statistically significant impact on small and medium enterprises' performance. Moreover, the study recommends that Zain telecom invest heavily in human resources by sending them abroad to be highly skillful, have the better technical ability of copying foreign technologies and be creative and innovative by integrating complex systems.Moreover, it suggested that the Sudanese government should stimulate the investment climate and establish a policy for the sake of re-attracting better technological resources through foreign direct investment and promoting the private sector in which small and medium enterprises are innovative by providing them with international linkages and access to more funding and international relationships.

This paper provides theoretical and imperical insights into the Many Sudanese small and medium-sized enterprises have struggled over the last three decades; some of these enterprises went out of business while othersare still struggling and desperate to have new economic reform that provides them with favorable policies as well as greater access to foreign investments spillovers, therefore in responses to that this study is aimed to explore the impact of foreign direct investment Spillovers on small and medium enterprises performance case Zain telecom Sudan. The study thought to establish the impact of foreign direct investment spillovers namely (Finance, Technology & Skill spillovers) on small and medium enterprises' performance. A sample of 30 respondents was selected from juniors, seniors, and top staff who worked at Zain in various departments, including marketing, human resources, finance, and customer services, using a convenience sampling technique in which a Structured questionnaire was distributed among them. To test the significant impact, Statistical Package for Social Science (SPSS) used multiple linear regression to test the significant impact. The finding suggests both Finance and Skill spillovers have a statistically significant impact on small and medium enterprises' performance; however, it showed that Technology spillovers have no statistically significant impact on small and medium enterprises' performance. Moreover, the study recommends that Zain telecom invest heavily in human resources by sending them abroad to be highly skillful, have the better technical ability of copying foreign technologies and be creative and innovative by integrating complex systems.Moreover, it suggested that the Sudanese government should stimulate the investment climate and establish a policy for the sake of re-attracting better technological resources through foreign direct investment and promoting the private sector in which small and medium enterprises are innovative by providing them with international linkages and access to more funding and international relationships.

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