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

Year 2016, Volume: 4 Issue: 2, 107 - 136, 01.10.2016

Samson Omuudu Otengeı Geofrey Bakunda Mohammed Ngoma Joseph M. Ntayı John C. Mununene

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