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Government support, strategic alliance and internationalization: Evidence from indigenous Ghanaian exporters

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Abstract

The degree of internationalization requires a symbiotic relationship between, the state, competitor (as a domestic interfirm alliance) and international/foreign partner or agent to develop efficiency, competency, competitiveness and increase in international operations. This present study therefore assessed the mediating role of strategic alliance in the relationship between government support (financial and non-financial) and the degree of internationalization of indigenous firms. The study was a survey, with data gathered from 301 indigenous exporters, identified from the Ghana Export and Promotion Authority database. The reliability and validity of the data were tested using confirmatory factor analysis, with structural equation modelling as the main means of analysis, run using Amos v.23. The study concluded that both financial and non-financial government support had a significant positive effect on the degree of internationalization. These relationships were, however, partially mediated by the strategic alliance. Future studies could explore the same relationships, but looking beyond the government support, indigenous firms and the study of internationalization to include other external institutional elements such as socio-cultural factors.

Abstract

Le degré d’internationalisation exige une relation symbolique au sein des états, des compétiteurs (en tant que Pacte national interentreprises) et des partenaires internationaux pour développer l’efficacité, la compétence afin d’étendre des relations internationales. Pour cette raison, cette étude évalue le rôle du médiateur des pactes stratégiques dans les relations entre les soutiens gouvernementaux (financiers et non-financiers) et le niveau d’internalisation des entreprises indigènes. Notre étude est une enquête réalisée à partir des données recueillies sur 301 exportateurs indigènes qui ont été ciblés du secteur de Base de données de l’autorité de promotion et d’exportation du Ghana (Ghana Export and Promotion Authority database). Nous avons contrôlé la fiabilité et la justesse de cette enquête à travers l’Analyse factorielle confirmatoire (Confirmatory Factor Analysis), en prenant compte de Modèle d’équation structurelle (Structural Equation Modelling), comme le principal moyen d’analyse, en tenant compte de Amos v.23. En conclusion, les deux soutiens : financier et non-financier du gouvernement ont contribué considérablement au niveau d’internalisation. Pourtant, ces relations ont été arbitrées partiellement par des Pacte stratégiques. Sur ce, nous implorons des futures enquêtes dans le même domaine, en regardant au-delà des soutiens du gouvernement, des entreprises indigènes et des études d’internationalisation, y comprises d’autres éléments institutionnels externes comme les facteurs socio-culturels.

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Acknowledgements

The study expresses gratitude to the GEPA for releasing their export directorate to us. Also, we are thankful to the individual exporters who responded to our questionnaire.

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Authors and Affiliations

  1. School of Management, Information Technology and Governance, University of KwaZulu-Natal, Durban, South Africa

    Lydia Nyankom Takyi & Vannie Naidoo

  2. Department of Management Studies Education, Akenten Appiah-Menka University of Skills Training and Entrepreneurial Development, Kumasi, Ghana

    Lydia Nyankom Takyi & Courage Simon Kofi Dogbe

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  1. Lydia Nyankom Takyi
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  2. Vannie Naidoo
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  3. Courage Simon Kofi Dogbe
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The first author was responsible for conceptualising, data collection and developing the paper. The second author engaged in the general outlining and strengthening of the paper. The third author assisted in the data collection and was responsible for the analysis.

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Correspondence to Lydia Nyankom Takyi.

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Takyi, L.N., Naidoo, V. & Dogbe, C.S.K. Government support, strategic alliance and internationalization: Evidence from indigenous Ghanaian exporters. J Int Entrep 20, 619–638 (2022). https://doi.org/10.1007/s10843-022-00312-3

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