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Competence and enterprise of management as drivers of early foreign listing of medium-sized emerging market multinationals (EMNEs) from Africa

Lookup NU author(s): Dr Irene Chu

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This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).

Abstract

EMNEs from Africa are missing in global places and spaces, and Africapitalism is also meagrely representedwithin the capillaries of international investments, relative to the opportunities offered by globalisation andAfrica’s rich natural resource endowment. Using the Penrosian MNE growth theory, we investigate how Africanfirms’ managerial competence and entrepreneurial behaviours can be enhanced by engaging foreign executivedirectors during pre, early and post-internationalisation. We conduct our analysis by using data from 157companies domiciled in 17 African countries. Our results show that whilst access to liquidity, foreign managerialknow-how, and experience are key drivers of early foreign listing of African EMNEs, these factors have less effecton corporate outcomes during the 3rd and 5th year without the moderating effect of foreign executive directors.We contribute to the international business and international entrepreneurship literature by showing that AfricanEMNEs can succeed in global spaces if they leverage the expertise of foreign executive directors as they bringidiosyncratic industry and market knowledge during early internationalisation. EMNEs intending to interna-tionalise must use a polycentric governing board structure to reflect the intended destination country. Our resultsimply that early listing on the international stock markets is among the key strategies latecomers use to enter aglobal game they are just learning to play

Publication metadata

Author(s): Adams K, Attah-Boakye R, Yu H, Chu I, Ishaque M

Publication type: Article

Publication status: Published

Journal: Journal of Business Research

Year: 2023

Volume: 158

Print publication date: 01/03/2023

Online publication date: 06/01/2023

Acceptance date: 04/01/2023

Date deposited: 14/02/2023

ISSN (print): 0148-2963

ISSN (electronic): 1873-7978

Publisher: Elsevier

URL: https://doi.org/10.1016/j.jbusres.2023.113660

DOI: 10.1016/j.jbusres.2023.113660

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