Abstract

Purpose: This study assessed the effect of entry mode strategy on firm performance of selected manufacturers of baby-care product in Lagos State, Nigeria, more so, it examined the moderating effect of customer engagement on the relationship between entry mode strategy and firm performance. Methodology: This study employed a cross-sectional survey design and a sample of 452 employees of twelve manufacturers of baby-products in Lagos State, Nigeria. A moderated regression analysis to test two-way interaction hypotheses was conducted. Findings: The results showed that entry mode strategy has a positive and significant effect on firm performance (R2 =0.042, F(2,449) = 9.865, p <0.000). Further analysis showed that customer engagement explained the increase in firm performance (ΔR2 =0.543, ΔF(1,448) = 587.305 p <0.000) with the introduction of customer engagement as a moderator. Implications: Beyond the performance of entry mode strategy for firms, manager’s needs to deploy customer engagement capability because it’s offers high performance opportunities for the firms who can deploy it. Hence, firm needs to invest in setting up platforms to engage their customers after gaining access to a new international market.

Highlights

  • Local manufacturers in the FMCG category in Nigeria are confronted with many challenges which includes infrastructure inadequacy, policy inconsistence, increasing insecurity, and activity of new entrants from other developed economies (Manufacturers Association of Nigeria, 2018)

  • The trust of this study is to evaluate the effect Entry Mode Strategy (EMS) has on firm performance and the moderating effect of Customer Engagement (CE) on the interactions of EMS and Firm Performance (FP)

  • The first hypothesis suggested that EMS would positively influence FP

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Summary

Journal of Business and Social Review in Emerging Economies

Volume and Issues Obtainable at Center for Sustainability Research and Consultancy. ARTICLE DETAILS History Revised format: February 2020 Available Online: March 2020. Keywords Entry Mode Strategy, Firm Performance, Customer Engagement, Eclectic Theory JEL Classification: F23, M31

Introduction
Hybrid mode
Findings
Discussion and Conclusion
Full Text
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