Inward Internationalization of African-Ethnic Restaurants: The Role of Managerial Dynamic Capabilities

Abstract

This paper empirically tests the link between cultural orientation, capabilities of owner-managers and the level of inward internationalisation of African-ethnic restaurants. Data were obtained from 201 African-ethnic restaurants. A twostep approach was used, i.e. (i) a confirmatory factor analysis (CFA) to generate a measurement model; and (ii) a structural equation model (SEM) to test the hypotheses. All the predictor variables are positively and significantly related to the degree of inward internationalisation and the relationship is strong enough to cause a 41 per cent variance. Since it is cross-sectional in design, the study cannot be fully relied upon to draw inferences regarding causality among the variables. The results suggest that owner-managers who develop the three capabilities succeed in enhancing inward internationalisation. The current study could be among the very few to propose a framework that brings together major managerial (dynamic) capabilities that are presumed to be vital in enhancing inward internationalisation.

Keywords

• Cultural orientation, Market orientation, Service innovation, Inward internationalisation