Exploring The Mediating Role Of Competitive Intensity On Strategic Orientation And Internationalization Of Ghanaian Smes In The Agricultural Processing Sector

Abstract

Purpose: The participation of small and medium enterprises (SMEs) in developing countries like Ghana is crucial for their international expansion. This study, therefore, seeks to explore the dimensions of strategic orientation and internationalization of Ghanaian SMEs in the agricultural processing sector, with a specific focus on competitive intensity as a mediator. The findings of this research can potentially guide policy decisions and business strategies in the agricultural sector of developing countries.

Design/methodology/approach: The study employed a survey research design. A questionnaire was electronically distributed to 355 Agric SMEs involved in the exports of goods from agro-based activities. The respondents were primarily businesses affiliated with the National Board for Small-Scale Industries (NBSSI), the Ghana Export Promotion Agency (GEPA), and the Ghana Chamber of Commerce. A total of 341 valid responses were collected for descriptive and inferential analysis, ensuring the reliability and validity of the findings.

Findings: The findings revealed that SMEs' proactiveness, risk appetite, and cost positively affect their internationalization processes. The result showed that strategic orientation contributes to about 74.2% of changes in SMEs’ international performance. Further, findings indicate a positive mediating impact of SMEs' competitive intensity in the nexus between strategic orientation and the internationalization process.

Originality: This research makes a unique contribution to studying the influence of strategic orientation on low-middle-income economic countries’ agriculture business exports. Focusing on Ghanaian SMEs in the agricultural processing sector, it seeks to ascertain the effect of strategic orientation on internationalization processes, providing a fresh perspective to the field.