The effects of institutions, innovation and business strategy on indigenous Ghanaian firms’ degree of internationalisation: determining the symbiotic relationships.

Abstract

Studies involving indigenous firms’ international operations, the role of institutions and symbiotic relationships in export activities in developing economies, particularly in the Sub- Saharan African countries, are underexplored in the extant literature, which, however, takes a normally developed country perspective. The general discourse in the literature is the crucial role the external environment plays in firms’ international operations. This study examines how the relationship between government financial and non-financial support and its associated effect on innovation and strategic alliances enhances the foreign market operations of indigenous internationalising firms in the non-traditional crops industries in Ghana. In addition, the study examined the synergistic influence of symbiotic relationships in moderating the association between innovation, strategic alliances and the degree of internationalisation. Drawing on an institutional-based view and using a mixed-method approach (quantitative and qualitative), the study develops a complex model using survey data from 301 indigenous Ghanaian exporters. Data were explored using structural equation modelling and content analysis. The findings from the thesis show and confirm that formal institutional dimensions (government financial and non-financial) have a significant positive (direct and indirect) effect on firms' internationalisation. In addition, the symbiotic relationship was found to have a direct effect on internationalisation and a strong moderating impact on innovation and business strategy, while informal institutional dimensions revealed varied direct and mediating effects on internationalisation. The study builds strong arguments for institutional theory, resource dependency theory and symbiotic relationships. In addition, this study's findings contribute to the international entrepreneurship theory by explaining the mediating X (innovation and strategic alliance) and moderating (symbiotic relationship) role in a developing market like Ghana. This study's originality lies in its use of a rigorous analytical tool, the SEM method, to validate a complex mediated-moderated conceptual framework on indigenous firms internationalisation. The thesis recommends an extensive collaborative relationship with government; family and friends; experienced exporters; successful importers and local firms to establish comprehensive symbiosis factors to reinforce the association of innovation and DOI, and business strategy and DOI. İn addition, the study recommends an implementation of single corridor method of export for the non-traditionaly crops. Such implementation of a single corridor method will help control pricing and volumes of export products to the international market and thereby avoid spoilage of products and goods. Lastly, the thesis suggests that government should consider increasing exporters’ capacity and capabilities to spur innovation and improve the degree of internationalisation.