The Challenges and Opportunities of Emerging Markets for Firm Internationalization

Abstract

This study examines the challenges and opportunities of firm internationalization in emerging markets, using MTN Nigeria as a case study. Through a mixed-methods approach involving semi-structured interviews, document analysis, and a survey of 150 MTN Nigeria employees and managers, the study identifies the key challenges faced by the company, including weak and unstable regulatory environment, infrastructure deficiencies, intense competition, cultural differences, lack of skilled local talent, and corruption. The study also highlights the main opportunities capitalized on by MTN Nigeria, such as the large and growing population, liberalizing telecommunications sector, potential for innovation in digital and financial services, growing middle class, untapped market segments, and strategic partnerships with local firms. The findings are compared with existing literature, revealing consistencies, extensions, and implications for theory and practice. The study contributes to the understanding of firm internationalization in emerging markets by providing a nuanced analysis of the specific challenges, opportunities, and strategies in the Nigerian telecommunications industry. It also highlights the limitations of existing theories and the need for adaptation to the unique institutional, cultural, and competitive contexts of emerging markets. The study offers recommendations for future research, including comparative studies across different emerging markets and critical examinations of the broader societal and developmental implications of firm internationalization.