INTERNATIONALIZATION OF GHANAIAN SMEs IN THE AGRO PROCESSING SECTOR: GROWTH AND SURVIVAL IN FOREIGN MARKETS

The world has witnessed increased globalization in recent decades due to the introduction of more liberalized trade policies and rapid pace of technological advancement. The growth in liberalization, integration and competition in world economies has influenced most firms to engage in international business activities. SMEs over the years have been a major contributor to the economic development of most developing economies particularly Ghana. The aim of this thesis is to identify and augment our understanding on the factors which influences the growth and survival of Ghanaian Agro Processing SMEs operation in foreign markets. Additionally, the study also seeks to identify and analyze the internationalization processes, motives and challenges of SMEs. In line with this, several conventional and mainstream literatures were applied to explain internationalization based on SME perspective. The review of literatures covers topics such as internationalization approaches, motives, export performance determinants, growth and survival factors. The study also explained the developments SMEs in Ghana and their internationalization processes. To achieve the objective of the study, a qualitative research method was employed based on case study approach. The sample size consist of four Ghanaian indigenous companies and the primary data was collected through interviews with top management using semi structured questions. Secondary sources which served as an auxiliary information source was used to obtain a deeper knowledge and understanding of the case firms. The study first revealed the significance of SME internationalization despite the several challenges they encounter. Undoubtedly, internationalization have contributed enormously to the growth of the case companies. The findings widely support previous studies on export performance and the growth and survival factors of firms. Based on the empirical results and in line with extant researches, profitability, managerial experience, international knowledge and experience, product quality and substantive resource capabilities were the principal factors which influences the growth and survival of agro processing SMEs operating in foreign markets. The role and government and effective networking also have positive impact on the operations of SMEs. The study concluded with a managerial suggestion which urged entrepreneurs and SME owners from Ghana and developing countries to pay critical attention to the aforementioned influential factors in order to succeed in foreign markets.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format