A research submitted in partial fulfillment of the requirement for the degree of Master of Business Administration.

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1993

The study examines the Direct Foreign Investment (FDI) by the Indian enterprises in the European Community in the context of the motives, the problems they encounter in FDI, and a specific focus on the technological transfer to the India. The information used in this study was gathered in structured interviews through questionnaire with the Directors and Senior executives of 14 Indian firms. (8 in India, 3 in The Netherlands and one each in. Belgium & Germany). The study also relies on the statistics published by the Indian government, previous published & unpublished academic literature and press reports from the leading business magazines. The evidence found in the study indicates that FDI by Indian enterprise is in the nascent stage, operate in a narrow market segment and prefer to have a management control. The study also finds the sample firm lack ownership assets, information about the EC market and managerial expertise. The technology advantages offered by the firms is not adequate to sustain FDI. Further the study find that there are problems with the government regulations and infrastructure facilities especially in telecommunication and port handling facilities. The study concludes with the identification of characteristics of Indian enterprises, market & technological factors as a prime motivational factors and the linkages in technology transfer to India from FDI. The study recommends changes in the Indian enterprises strategies in FDI. The changes are necessary for the Indian firms to compete effectively in the EC market.