Understanding Small Business International Strategic Change: The Influence of Internal Resource Capacity - Evidence from a Developing Country

By Obi B. O. Damoah and Graham Hall.

Published by The Organization Collection

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Article: Print $US10.00
Article: Electronic $US5.00

With the advent of globalisation, it could be argued that internationalisation is a necessity for the proportion of SMEs in sub-Saharan Africa. Most governments in sub-Saharan Africa have embraced this phenomenon. Currently, there are a number of on-going programmes designed by governments, international organisations and local associations to attract as many small businesses in sub-Saharan Africa to engage in the export business as possible because of the macro and micro benefits that is derived from the event. Yet, export involvement by small firms from this region of the world continues to be low, but it is argued that for SMEs, regardless of the amount of the macro programmes offered to them, their actual export success resides within the firm capacity. As a result, this study uses empirical data from Ghana, and employs logistic regression to predict the type of SME which will successfully change its strategy from being a wholly domestic business and becoming an international business firm, given a set of resource stocks. Based on the logit model, it is found that small firms with educated workforce, those with foreign ownership and those that possess large size will be more likely to change their strategy from being a wholly domestic business to an international business firms. Implications for future research, public policy and practice, based on the findings of the study are suggested.

Keywords: Export, Sub-Saharan Africa, International Strategic Change, Ghana

International Journal of Knowledge, Culture and Change Management, Volume 10, Issue 6, pp.97-116. Article: Print (Spiral Bound). Article: Electronic (PDF File; 716.267KB).

Obi B. O. Damoah

PhD Student and Part-Time Lecturer, Department of Business and Management, Cardiff School of Management, Cardiff School of Management, University of Wales Institute, Cardiff, Cardiff, UK

The author is a final year PhD student in ‘strategy and organisation’ at the Cardiff School of Management, University of Wales Institute, Cardiff. He has worked with Iron Mountain, Leader in Records and Information Management Division, Brampton in Canada and the European Forum on International Co-operation (EUFORIC) in Maastricht, the Netherlands. Prior to starting his journey to a PhD degree, he taught as a part-time lecturer at the Department of Organisation and Management, University of Ghana Business School in Ghana. Currently, whilst preparing to finish up his PhD in 2010, he lectures on part-time with the department of business and management at the university where he is pursuing his doctoral programme. He has three publications to his credit – a book, a book chapter and a journal article.

Graham Hall

Cardiff School of Management, University of Wales Institute, Cardiff, UK

Prof. Graham Hall is a Professor of management at the Cardiff School of Management, University of Wales Institute, Cardiff, United Kingdom. He consults for businesses and governments. He publishes and authors many books and articles in high impact journals. He acts as guest editor (Entrepreneurship & Small Business Journal); consulting editor (International Small Business Journal) and editorial review board member (Journal of the Canadian Council for Small Business & Entrepreneurship).

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