Awolusi Olawumi Dele
The purpose of this study was to investigate the Critical Influencing Factors (CIFs) of internationalization by Nigerian service firms, as well as, examines specific relationships between these CIFs and Perceived International Business Performance Measure (PIBPM). A total of 567 management staff of 15 Nigerian service firms, with international presence was randomly selected from a business-to-business database maintained by a national list provider. Using the general framework of Dunning’s (1980) eclectic theory, factors manifesting PIBPM were regressed on the CIFs, manifesting successful internationalization. However, multivariate analyses was mathematically represented in a single equation, and this equation is expected to be used by Nigerian service firms in composing strategies to optimize their management of international entry decisions and international business performance. Overall, internationalization to significantly improve international business performance, the decision to expand to foreign country must be based on Increasing value and number of employee, high market potential, possession of unique proprietary technology, tacit know-how, and firm reputation/ image, favorable government policies, complementary and receptive host nation’s organizational structures, processes and administrative conveniences, and favourable pattern and government regulation of competition in the host nation. The model also provides predictive implications on improved international business performance, given the activities of CIFs manifesting successful internationalization.
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