The relationship between entrepreneurial intensity, entrepreneurial capability, the environment, and multinational performance - among multinational grocery firms in South Africa

Abstract

The role of multinational enterprises (MNEs) has changed, especially in emerging economies like South Africa and retailers are taking advantage of this and expanding globally. In South Africa, multinationals play an important role in the economy. This study aims to contribute to multinational enterprise literature by analysing the relationship between entrepreneurial intensity, capabilities – namely technology -, environmental hostility and dynamism, and their effect on multinational performance.

The primary data was collected from 145 managers employed in South Africa grocery firms who already have international presence, using an on-line based questionnaire.

From the findings of the study, it was established that entrepreneurial intensity (frequency of entrepreneurship and proactiveness) and technology capabilities were positively related to multinational performance. The results also suggest that multinational grocery firms in service in foreign markets should have robust advantages in order to participate in markets abroad with which they not unfamiliar if they are not strong on innovation, proactiveness, and taking risks. Technology factors encourage inventiveness and flexibility among managers to gain influence over vital resources, though the challenge for the firms in emerging markets is to adopt technology and act entrepreneurially.