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Timing and speed of internationalization: Evidence from African banks

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  • Kabongo, Jean D.
  • Okpara, John O.

Abstract

This study investigates the factors that influence the timing and speed of internationalization, using data from corporate annual reports, websites, and media from 23 top banks in Africa, over the period ranging from 2010 to 2018. The findings suggest that entry timing is influenced by a firm's ownership structure and board members' experience and diversity. The findings also show three factors that increase the speed of internationalization: (1) learning from observing trends in the banking industry, extending organizational capabilities to explore new markets and exploiting these capabilities to capitalize on identified opportunities; (2) following the African diaspora specifically in developed countries; and (3) acquiring assets from other banks as well as entering strategic alliances with foreign partners. The internationalization of African banks presents similarities but also fundamental differences with multinationals from developed countries and those from emerging economies. Theoretical implications of the findings are discussed along with future research directions.

Suggested Citation

  • Kabongo, Jean D. & Okpara, John O., 2019. "Timing and speed of internationalization: Evidence from African banks," Journal of Business Research, Elsevier, vol. 102(C), pages 12-20.
    • Handle: RePEc:eee:jbrese:v:102:y:2019:i:c:p:12-20
    DOI: 10.1016/j.jbusres.2019.05.003
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