Innovation and Internationalization of Nigeria Deposit Money Banks

Moruff Sanjo Oladimeji, Adebiyi Julius Abosede, Benneth Uchenna Eze

Abstract


The study investigated the effect of service and process innovation on internationalization of Nigeria deposit money banks, using a survey research design. A structured questionnaire was administered to a purposively selected sample of seven hundred and sixty five (765) staff of five international banks; from the population of one thousand six hundred and fifteen (1615) staff of strategy and international operation departments of the ten Central Bank of Nigeria (CBN) licensed international banks. Ordinary Least Squares was employed to estimate the regression model and this was done with the aid of STATA 12. The findings revealed that service and process innovation significantly affect bank’s internationalization. It is therefore recommended that banks seeking internationalization should adopt services and processes innovativeness strategy. 


Keywords


Internationalization, Innovation, International Entry Strategies, Institutional Theory, Joint Venture

Full Text:

PDF

References


Amoros, J.,Etchebarne, M., Zapata, I. & Felzenstein, C. (2016). International entrepreneurial firms in Chile: An exploratory profile. Journal of business research, 69(6), 2052-2060.

Amungo, E. (2016). Examining the factors influencing the international expansion of Nigerian banks. in Adeleye, I., White, L., & Boso, N. (eds). Africa to Africa internationalization: key issues and outcomes. Switzerland: Palgrave Macmillan.

Awolusi, O.D. (2013). Factors influencing the internationalization of Nigerian manufacturing firms: An empirical analysis. International journal of business and management review, 1(3), 14-34.

Bell, J., Crick, D., & Young, S. (2004). Small firm internationalization and business strategy. International small business journal, 22(1), 23-56.

Brouthers, K.D., & Hennart, J. (2007). Boundaries of the Firm: Insights From International Entry Mode Research, Journal of Management, 33(3), 395-425.

Boermans, M., & Roelfsema, H. (2015). Small firms internationalization, innovation and growth. International Economics and policy journal, 2(1), 132-140.

Cahen, F., Lahiri, S., & Borini, F. (2016). Managerial perceptions of barriers to internationalization: An examination of Brazil’s new technology-based firms. Journal of business research, 69(6), 1973-1979.

Calabro, A.,Campopiano, G., Basco, R., & Pukall, T. (2016). Governance structure and internationalization of family controlled firms: The mediating role of international entrepreneurial orientation. European management journal, 2(3), 374-389.

Chavan, M., & Agarwal, R. (2016). The efficacy of linkages for relational capability building and internationalization: Indian and Australian mining firms. International journal of business and economics, 15(1), 51-78.

Cui, L. & Jiang, F. (2012). State ownership effect on firms FDI ownership decisions under institutional pressure: A study of Chinese outward investing firms. Journal of international business studies, 43(3), 264-284.

Diego, Q., Enrique, C., & Laura, R. (2011) Political risk, cultural distance, and outward foreign direct investment: Empirical evidence from large Chinese firms. Asia Pacific Journal of Management 29, 1089-1104.

Dimitratos, P., Buck, T., Fletcher, M., & Li, N. (2016). The motivation of international entrepreneurship: The case of Chinese transnational entrepreneurs. International business review, 25(5), 1103-1113.

Ghauri, P., Tasavori, M., & Zaefarian, R. (2014). Internationalization of service firms through corporate social entrepreneurship and networking. International marketing review, 31(6), 576-600.

Grönroos, C. (1999). Internationalization strategies for services. Journal of Services Marketing, 13(4/5), 290-297.

Hennart, J.F., & Larimo, J. (1998). The impact of culture on the strategy of multinational enterprises: Does national origin affect ownership decisions. Journal of international business studies, 29(3), 515–538.

Hill, C.W.L., 2007. International Business Competing in the Global Marketplace. Irwin: McGraw Hill.

Holmlund, M., & Kock, S. (1998). Relationships and the internationalization of Finnish small and medium-sized companies, International Small Business Journal, 16(1), 46-63.

Huse, M. Neubaum, D. O., & Gabrielsson, J. (2005). Corporate Innovation and Competitive Environment. International Entrepreneurship and Management Journal, 1(3), 313-333.

Johanson, J., & Vahlne, J.E. (1977). The internationalization process of the firm– a model of knowledge development and increasing foreign market commitments. Journal of International Business Studies 8(1), 23–32.

Junaidu, A.S. (2012). Export performance of SMEs in the Nigeria leather industry and the mediating effect of perception of export difficulty. International journal of academic research in business and social sciences, 2(10), 1-12.

Loane, S., Bell, J.D., and McNaughton, R. (2006). A cross-national study on the impact of management teams on the rapid internationalization of small firms. Journal of World Business 42(1), 146–165.

Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management review, 2(1), 135-172.

Ngoma, M., Sudi, E. & Nangoli, K.C. (2017). Internationalization of SMEs: does entrepreneurial orientation matter? World journal of entrepreneurship, management and sustainable development, 13(2), 1-9.

Nosi, C., Pucci, T., & Zanni, L. (2017). No need to choose between innovation and internationalization: when pursuing two strategies at a time leads to firm superior performance. Piccola Impresa / Small Business.

O'Cass, A., & Weerawardena, J. (2009). Examining the role of international entrepreneurship, innovation and international market performance in SME internationalization. European journal of marketing, 43(11/12), 1325-1348.

Ovadje, F. (2016). The internationalization of African firms: Effects of cultural differences on the management of subsidiaries. African journal of management, 2(2), 117-137.

Penrose E.T. (1959). The theory of the growth of the firm. Oxford: Basil Blackwell.

Prange, C., & Pinho, J.C. (2017). How personal and organizational drivers impact on SME internationalizational performance: The mediating role of organization innovation. International business review.

Rezvani, M. Ghamari, Y. & Ghahramani, S. (2013). Identifying themes of entrepreneurial strategy of new venture in international market entry. Journal of economics, business and management, 1(2), 217-219.

Root, F.R. (1994). Entry strategies for international markets. D.C. Heath, Lexington, MA. Schumpeter, J. (1934). The theory of economic development. Cambridge, MA: Harvard University Press.

Sdiri, H., & Ayadi, M. (2014). Internationalization and innovation profitability: The case of Tunisian service firms. Problems and perspectives in management, 12(1), 40-50.

Slimane, A. Slim, A., & Manouri, F. (2015). Corporate entrepreneurship and learning capability of internationalized SMEs. International Journal of economics and strategic management of business process, 4(1), 302-313.

Thomas.F.L. (2013). Applying the transaction cost theory, ResourceBased View and Institutional Theory in Entry Mode:The Case of a Danish Retailer Entering Russia. Available from: http://pure.au.dk/portal-asbstudent/files/55744852/300115.pdf [Accessed on 26 July, 2016].

Veilleux, S. & Roy, M. (2015). Strategic use of corporate and scientific boards in the internationalization of biotech firms. International journal of technoentrepreneurship, 3(1), 67-93.

Venter, A., Rwigema, H. & Urban, B. (2008). Entrepreneurship: theory in practice, 2nd edition, Cape Town:Oxford University Press Southern Africa (Pty) Ltd.

Wach, K. (2014). Internationalisation and Globalisation as a Wider Context of Europeanisation from Micro and Macroeconomic Perspective. Horyzonty Polityki, 5(10), 11-30.

Welch, L., & Luostarinen, R., (1988). Internationalization- evolution of a concept. Journal of general management,14(2), 34-55.

Whitelock, J., & Jobber, D. (2004). An evaluation of external factors in the decision of UK industrial firms to enter a new non-domestic market: an exploratory study. European Journal of Marketing, 38(11/12), 1437-1455.

Wiklund J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic management journal, 24(2), 1307-1314.

Woodcock, C.P., Beamish, P., & Makino, S. (1994). Ownership-based entry mode strategies and international performance. Journal of international business studies, 25(2), 253-274.

Xu, H., Carter, L., Taute,H. & Dishman, P. (2016). Managers perceived risk, experiential knowledge, marketing capability and international performance: A study of Chinese international enterprises. Journal of marketing development and competitiveness, 10(1), 53-65.

Yiu, D. & Makino, S. (2002). The choice between joint venture and wholly owned subsidiary: An institutional perspective. Organization Science, 13(6), 667-679.




DOI: https://doi.org/10.5195/emaj.2018.144

Refbacks

  • There are currently no refbacks.




Copyright (c) 2018 Moruff Sanjo Oladimeji, Adebiyi Julius Abosede, Benneth Uchenna Eze

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.