Conference paper 2022

Informal born regional enterprises in Ghana: an extension of internationalisation theories

International Journal of Entrepreneurship and Small Business
Journal · Vol. 47 · Issue 4 · pp. 450-493
Abstract

Firm internationalisation theories have attempted to explain why, when, where, and how firms engage in cross-border business activity. Yet such research analyses have mainly focused on firms in the formal sector rather than the informal sector. As a step toward filling this gap, we examine the internationalisation degree of informal enterprises using enterprise data collected from 125 randomly selected respondents located in two major clusters in Ghana. With an overall 20 foreign markets served, the informal firms internationalise by capitalising on the cluster resources as joint infrastructure and actor-based perspectives and the linkages between informal and formal sectors, as well as by adopting a stage-wise approach. Additionally, 45% of the firms expand abroad but significantly within Africa from 1 to 3 years after establishment. As such, we introduce the term 'informal born regional enterprises' to the literature of internationalisation, which is synonymous with the 'born regional' argument. © 2022 Inderscience Enterprises Ltd.

Keywords

Author Keywords

Networks Ghana Informal sector SMEs foreign but domestic-situated agents industrial cluster informal born regional enterprises internationalisation degree

Index Keywords

Author Affiliations
Faculty of Economics and Management Science, Universität Leipzig, Leipzig, Sachsen, Germany
Funding & Acknowledgements
No funding information
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