The reciprocity objective! The economic business environment and transnational corporations loyalty to the host country in Tanzania

Figures & data

Figure 1. Conceptual framework.

Source: Researcher’s Development based on IPT, SET, Literature and Primary Data, 2023.

Table 1. Assessment of measurement model.

Scale items	Factor loadings	t-Value	CA (α)	KMO	Bartlett’s test (Chi-Square)	CR	AVE
Economic business environments			0.822	0.812	367.178***	0.884	0.528
EBE1: Interest Rate	0.572	8.91***		0.875
EBE2: Excise Duty	0.645	10.92***		0.823
EBE3: Income Level	0.901	33.06***		0.807
EBE4: Saving Rate	0.838	24.98***		0.771
EBE5: Consumer Confidence Level	0.776	18.81***		0.868
EBE6: Employment Rate	0.533	7.88***		0.814
EBE7: Labor Costs	0.746	13.6***		0.695
TNCs Loyalty			0.739	0.661	174.054***	0.842	0.524
LOY1: New investments and reinvestments of earnings in the host country	0.747	13.66***		0.623
LOY2: Considering the host country as first choice of investments, reinvestment, and expansion plans	0.773	7.83***		0.665
LOY3: Positively recommending the host country to other TNCs and international investors	0.478	5.87***		0.831
LOY4: Willingness to exert considerable effort to promote the host country’s investment opportunities to potential international investors	0.842	15.61***		0.613
LOY5: Strong desire to maintain current business operations in the host country	0.726	13.02***		0.650

Overall: KMO= 0.740; Bartlett’s Test of sphericity: Chi-Square= 626.905***; CA= 0.805.

*** p < 0.001.

Table 2. Descriptive statistics.

Statistics	Interest rate	Excise duty	Income level	Saving rate	Consumer confidence level	Employment rate	Labor costs	TNCs loyalty
Mean	2.542	2.557	2.328	2.176	2.565	2.450	3.008	3.803
SD	0.428	0.525	0.144	0.008	0.206	0.092	0.924	0.093
Swilk test	0.180	−0.063	1.707	2.404	0.821	1.329	−1.430	1.323
Min	1.000	1.000	1.000	1.000	1.000	1.000	1.000	1.900
Max	5.000	5.000	5.000	5.000	5.000	5.000	5.000	5.000
p50	3.000	3.000	2.000	2.000	3.000	2.000	3.000	3.900
p90	3.000	3.000	3.000	3.000	4.000	3.000	4.000	4.550
VIF	1.56	1.33	3.23	2.99	2.22	1.66	1.46	1.25

Table 3. Correlations between variables.

Measurement factors	Interest rate	Excise duty	Income level	Saving rate	Consumer confidence level	Employment rate	Labor costs
EBE1: Interest Rate	0.672
EBE2: Excise Duty	0.396***	0.645
EBE3: Income Level	0.488***	0.426***	0.901
EBE4: Saving Rate	0.494***	0.295***	0.761***	0.838
EBE5: Consumer Confidence Level	0.395***	0.317***	0.692***	0.694***	0.776
EBE6: Employment Rate	0.393***	0.242***	0.488***	0.390***	0.381***	0.533
EBE7: Labor Costs	0.285**	0.220***	0.273***	0.137***	0.208***	0.495***	0.746
LOY: TNC loyalty	0.357**	0.395**	0.352***	0.377***	0.305**	0.352**	0.499

Notes: Diagonal elements are the square root of AVE between the constructs and their measures. The off-diagonal elements are correlations between the constructs. EBE stands for economic business environment. LOY stands for TNC loyalty.

*** p < 0.001.

** p < 0.05.

Table 4. Direct effect on TNC loyalty.

	Model 1			Model 2
Measurement factors	Coefficient	Std. err	t-Value	Coefficient	Std. err	t-Value
EBE1: Interest Rate	0.028	0.112	0.25	0.072	0.111	0.65
EBE2: Excise Duty	0.125	0.118	1.05	0.081	0.120	2.17
EBE3: Income Level	0.208	0.147	1.41**	0.163	0.144	1.13**
EBE4: Saving Rate	0.195	0.137	1.42***	0.129	0.136	0.95***
EBE5: Consumer Confidence Level	0.198	0.119	1.66***	0.220	0.118	1.86**
EBE6: Employment Rate	0.252	0.116	2.18***	0.270	0.113	1.27**
EBE7: Labor Costs	−0.233	0.084	−2.77***	−0.223	0.082	−2.76***
Years of operations (Experience)				0.205	0.072	2.85***
Industry sector type (TNC Industry)				0.037	0.032	1.16**
Number of employees (TNC size)				0.081	0.090	0.9
R^2	0.166			0.232
Adjusted R^2	0.118			0.168
F-Statistics	5.1***			6.9***

** p-value <0.05.

*** p-value <0.001.