Factors that Influence Internationalisation of Family Businesses in the Accra Metropolis, Ghana

Abstract

Internationalisation contributes to market expansion. Nevertheless, family businesses in the Accra Metropolis are fraught with a number of challenges making it difficult for most of them to take advantage of the international market and its associated benefits. It was against this background that the present assessed the factors that influence internationalisation of Ghanaian family businesses within the Accra Metropolis. The explanatory research design was employed. Using stratified random sampling technique, 181 family businesses were sampled for the study; the respondents were the top level management members of these businesses. Descriptive statistical tools, such as frequency, percentage, mean and standard deviation; and inferential statistics, such as the Pearson product-moment correlation and regression analysis were used to analyse the research objectives. Results revealed that family commitment culture has a statistically significant positive effect on degree of internationalisation. Also, it was found that strategic flexibility has a statistically significant positive effect on degree of internationalisation. It was then concluded that family businesses that uphold family values and flexible strategic plans are likely to expand operations abroad. It was, thus, recommended that leadership of family businesses within the Accra Metropolis make more flexible and responsive their strategic plans to new trends. Suggestions were then made for further studies.