Internal capabilities, national governance and performance in African firms
Internal capabilities, national governance and performance in African firms
We explore the relations between firms’ internal capabilities, national governance quality (NGQ) and performance in the African context using a dataset comprised of 11,183 firm-year observations (1,490 unique firms from 15 African countries over a 17-year period). Our study offers new insights into how interlinkages between firms’ internal and external environment, shape corporate success. Specifically, we find that (1) firms’ internal capabilities (captured by financial resource-availability and growth prospects) are critical enablers of performance in both weak and strong institutional environments, (2) individual firms perform well in environments where their peers performs well, (3) NGQ directly enhances aggregate firm performance, and in tandem, the performance of individual firms, and (4) NGQ moderates the capability-performance nexus, by enhancing the translation of growth opportunities into profitability. The results highlight the critical role of firm-level financial resource availability and growth prospects in shaping corporate success in this challenging institutional environment.
18-37
Agyei-Boapeah, Henry
37005f29-d453-458e-b6b5-cd92e55587a4
Tunyi, Abongeh
5b8bebf9-5060-4f17-8cee-14ce3a93b458
Areneke, Geofry
f405df98-6e87-4cc9-a390-d4ed417b92e0
Agyemang, Jacob
ac1361e0-ab6c-4076-9c3e-3b9fd3d7c959
December 2019
Agyei-Boapeah, Henry
37005f29-d453-458e-b6b5-cd92e55587a4
Tunyi, Abongeh
5b8bebf9-5060-4f17-8cee-14ce3a93b458
Areneke, Geofry
f405df98-6e87-4cc9-a390-d4ed417b92e0
Agyemang, Jacob
ac1361e0-ab6c-4076-9c3e-3b9fd3d7c959
Agyei-Boapeah, Henry, Tunyi, Abongeh, Areneke, Geofry and Agyemang, Jacob
(2019)
Internal capabilities, national governance and performance in African firms.
Research in International Business and Finance, 50, .
(doi:10.1016/j.ribaf.2019.04.009).
Abstract
We explore the relations between firms’ internal capabilities, national governance quality (NGQ) and performance in the African context using a dataset comprised of 11,183 firm-year observations (1,490 unique firms from 15 African countries over a 17-year period). Our study offers new insights into how interlinkages between firms’ internal and external environment, shape corporate success. Specifically, we find that (1) firms’ internal capabilities (captured by financial resource-availability and growth prospects) are critical enablers of performance in both weak and strong institutional environments, (2) individual firms perform well in environments where their peers performs well, (3) NGQ directly enhances aggregate firm performance, and in tandem, the performance of individual firms, and (4) NGQ moderates the capability-performance nexus, by enhancing the translation of growth opportunities into profitability. The results highlight the critical role of firm-level financial resource availability and growth prospects in shaping corporate success in this challenging institutional environment.
Text
Internal capabilities
- Accepted Manuscript
More information
Accepted/In Press date: 23 April 2019
e-pub ahead of print date: 27 April 2019
Published date: December 2019
Identifiers
Local EPrints ID: 434314
URI: http://eprints.soton.ac.uk/id/eprint/434314
ISSN: 0275-5319
PURE UUID: 491ad413-a400-4e18-b06b-102101fc38c6
Catalogue record
Date deposited: 19 Sep 2019 16:30
Last modified: 16 Mar 2024 08:13
Export record
Altmetrics
Contributors
Author:
Abongeh Tunyi
Author:
Geofry Areneke
Author:
Jacob Agyemang
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics
