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Entry Mode Strategy, Firm-Level Capability, Environmental Turbulence, and Organisational Performance: A Moderated Analysis

Author

Listed:
  • Abiodun B.ONAMUS

    (Department of Management & Accounting, Lead City University, Ibadan Oyo State, Nigeria)

  • Grace O. MAKINDE

    (Department of Business Administration & Marketing, Babcock University, Ilishan-Remo Ogun State, Nigeria)

  • Babatunde H. AKINLABI

    (Department of Business Administration & Marketing, Babcock University, Ilishan-Remo Ogun State, Nigeria)

Abstract

This study examined the effect of entry mode strategy and firm-level capability on organisational performance of selected Fast-Moving Consumer Goods (FMCG) manufacturer in Lagos State, Nigeria; more so, it investigated the moderating effect of environmental turbulence on the interaction between entry mode strategy and firm-level capability, and organisational performance. The cross-sectional survey research design was adopted with a sample of 452 employees of twelve selected FMCGs manufacturers in Lagos State, Nigeria. A hierarchical regression analysis was conducted to substantiate the moderation-effect hypotheses formulated. Findings showed that entry mode strategy and firm-level capability have a positive and significant effect on organisational performance. Further analysis showed that the interaction term of environmental turbulence, firm-level capability, and entry mode strategy explained the increase in organisational performance with the introduction of environmental turbulence as a moderator. Beyond the performance-effect of entry mode strategy and firm-level capability, management needs to keep abreast of issues happening in the external environment and proactively position their organisation to take advantage of the environment's opportunities while reducing exposure to negative consequences.

Suggested Citation

  • Abiodun B.ONAMUS & Grace O. MAKINDE & Babatunde H. AKINLABI, 2020. "Entry Mode Strategy, Firm-Level Capability, Environmental Turbulence, and Organisational Performance: A Moderated Analysis," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 5(2), pages 278-290, December.
    • Handle: RePEc:rom:merase:v:5:y:2020:i:2:p:278-290
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    References listed on IDEAS

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    More about this item

    Keywords

    dynamic capability theory; eclectic theory; entry-mode strategy; firm-level capability; organisational performance;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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