Manchester Metropolitan University's Research Repository

    Internal capabilities, national governance and performance in African firms

    Tunyi, AA, Agyei-Boapeah, H, Areneke, G ORCID logoORCID: https://orcid.org/0000-0001-6075-2747 and Agyemang, J (2019) Internal capabilities, national governance and performance in African firms. Research in International Business and Finance, 50. pp. 18-37. ISSN 0275-5319

    Accepted Version
    Available under License Creative Commons Attribution Non-commercial No Derivatives.

    Download (1MB) | Preview


    © 2019 Elsevier B.V. We explore the relations between firms’ internal capabilities, national governance quality (NGQ) and performance in the African context using a dataset comprised of 11,183 firm-year observations (1490 unique firms from 15 African countries over a 17-year period). Our study offers new insights into how interlinkages between firms’ internal and external environment, shape corporate success. Specifically, we find that (1) firms’ internal capabilities (captured by financial resource-availability and growth prospects) are critical enablers of performance in both weak and strong institutional environments, (2) individual firms perform well in environments where their peers performs well, (3) NGQ directly enhances aggregate firm performance, and in tandem, the performance of individual firms, and (4) NGQ moderates the capability-performance nexus, by enhancing the translation of growth opportunities into profitability. The results highlight the critical role of firm-level financial resource availability and growth prospects in shaping corporate success in this challenging institutional environment.

    Impact and Reach


    Activity Overview
    6 month trend
    6 month trend

    Additional statistics for this dataset are available via IRStats2.


    Repository staff only

    Edit record Edit record