The Strategic Orientations And Determinants Of Wholly Owned Textiles Subsidiaries In The Mauritian Export Processing Zone A Case Study Of The Textile And Wearing Apparel Sector

Abstract

This paper focuses on ascertaining the strategic orientations and determinants of wholly-owned subsidiaries in the Mauritian export-processing zone, with special emphasis on the textile and wearing apparel industry. The results show that costs minimisation, the ability to export to protected markets and the distinct possibility to evade barriers to entry imposed on their home nations were clear motivations underlying the establishment of operations by wholly-owned subsidiaries in the MEPZ. Furthermore, using regression analysis, the analysis shows that quality of infrastructure and cultural proximity were significant location determinants for MEPZ wholly-owned subsidiaries. Finally, using independent t-test, the results also highlight the greater prevalence attached by Asian firms to infrastructural provisions, cultural proximity and preferential access to developed markets in relation to their European counterparts.