Understanding the International Entrepreneurial Process of Emerging Economy Firms: Evidence from Nigerian SMEs

Abstract

This study is motivated by the need to improve the understanding of international entrepreneurship (IE) in emerging economies. Thus, the researcher conducted an in-depth case study of four Nigerian firms to investigate how divergent institutional conditions influence the processes of IE from emerging economies to developed economies. The findings of the study depict how entrepreneurial activity from emerging economies to developed economies can involve many sub-activities and processes to achieve opportunity identification, development, and exploitation. This process which appears disruptive is significantly supported through resource acquisition and development. However, this process of IE is heavily shaped by the institutional conditions of the international entrepreneur’s host and home markets. The institutional environment impeded growth and entrepreneurial aspirations while simultaneously facilitating access to resources, reducing risks and providing legitimacy to the firms. These simultaneous effects of institutions constrained strategic choices of the entrepreneurs and by so doing, shaped the means and processes by which they identify and execute international opportunities. The major contributions of this thesis include the validation of New Institutional Economics (NIE) framework for the examination of IE processes and empirical evidence demonstrating how entrepreneurial activity from emerging economies to developed economies can involve many sub-activities and processes to achieve opportunity identification, development, and exploitation. Also, the study guides emerging economy managers and entrepreneurs on ways to effectively manage their liabilities of smallness and foreignness. Lastly, the study provides some policy recommendations to facilitate the development of a conducive environment for entrepreneurship and IE to flourish in Nigeria.