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

Adams, Kweku; Attah-Boakye, Rexford; Yu, Honglan; Chu, Irene; Ishaque, Maria

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


Authors

Kweku Adams

Rexford Attah-Boakye

Honglan Yu

Irene Chu

Maria Ishaque



Abstract

EMNEs from Africa are missing in global places and spaces, and Africapitalism is also meagrely represented within the capillaries of international investments, relative to the opportunities offered by globalisation and Africa's rich natural resource endowment. Using the Penrosian MNE growth theory, we investigate how African firms' managerial competence and entrepreneurial behaviours can be enhanced by engaging foreign executive directors during pre, early and post-internationalisation. We conduct our analysis by using data from 157 companies domiciled in 17 African countries. Our results show that whilst access to liquidity, foreign managerial know-how, and experience are key drivers of early foreign listing of African EMNEs, these factors have less effect on 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 African EMNEs can succeed in global spaces if they leverage the expertise of foreign executive directors as they bring idiosyncratic industry and market knowledge during early internationalisation. EMNEs intending to internationalise must use a polycentric governing board structure to reflect the intended destination country. Our results imply that early listing on the international stock markets is among the key strategies latecomers use to enter a global game they are just learning to play.

Journal Article Type Article
Acceptance Date Dec 19, 2022
Online Publication Date Jan 16, 2023
Publication Date 2023-03
Deposit Date Jan 3, 2023
Publicly Available Date Jul 17, 2024
Journal Journal of Business Research
Print ISSN 0148-2963
Publisher Elsevier BV
Peer Reviewed Peer Reviewed
Volume 158
Article Number 113660
DOI https://doi.org/10.1016/j.jbusres.2023.113660
Keywords Early internationalisation; managerial competence; foreign listing; oil and gas multinationals; Africa 2
Public URL https://nottingham-repository.worktribe.com/output/15709117
Publisher URL https://www.sciencedirect.com/science/article/pii/S0148296323000188
Additional Information This article is maintained by: Elsevier; Article Title: Competence and enterprise of management as drivers of early foreign listing of medium-sized emerging market multinationals (EMNEs) from Africa; Journal Title: Journal of Business Research; CrossRef DOI link to publisher maintained version: https://doi.org/10.1016/j.jbusres.2023.113660; Content Type: article; Copyright: © 2023 The Authors. Published by Elsevier Inc.

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