Corporate governance and the internationalisation of African firms: An institutional investor perspective

Abstract The aim of this study was to investigate the impact of corporate governance on the internationalisation of African firms from the perspective of institutional investors. While African firms have significantly expanded their international operations over the past two decades, international business literature has not given the related corporate governance aspects enough attention. In particular, the complex interaction between firm-level corporate governance mechanisms and country-level corporate governance systems has considerable implications for the value creation of internationalisation strategies. To address this research gap, semi-structured interviews were conducted with 24 senior decision-makers of institutional investors operating in South Africa, Botswana, Zambia, Mauritius, Ghana, and Nigeria to gain an unprecedented view of the internationalisation of African firms. Based on the findings of the thematic analysis, this study developed a theoretical framework of high practical relevance that combines the concepts of corporate governance and internationalisation in the dynamic and diverse African context. The study further provides novel insights into the cultural dimension of corporate governance by demonstrating that the outcome of corporate governance practices depends on cultural norms and values across a multinational firm’s international operations.