The Effect of Institutional Isomorphic Pressures on the Internationalization Intensity of Firms in the Context of Developing Countries: Evidence from Ethiopia
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Date
2024-02-20
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AAU
Abstract
This study investigates the influence of institutional isomorphic pressures on the
internationalization intensity of firms in developing countries, with a specific focus on Ethiopia.
It identifies coercive, mimetic, and normative pressures as critical dimensions of institutional
isomorphism. Employing an explanatory quantitative cross-sectional research design, data were
collected via a questionnaire survey from firms listed in the ECCSA & ACCSA 2021/22 business
directory, actively engaged in internationalization activities. Using Yamane's (1967) formula, a
sample of 333 companies was selected from a total population of 2000, resulting in 285 valid
responses. The analysis utilized Pearson correlation and multiple linear regression to explore
causal relationships. The findings reveal that coercive, mimetic, and normative pressures
significantly and positively influence the internationalization intensity of Ethiopian firms, driving
them to pursue opportunities abroad, enter foreign markets, and expand internationally, with
mimetic pressure showing a particularly strong correlation. This study's scope is limited to
Ethiopian firms listed in two national business directories and those engaged in international
activities, potentially constraining generalizability to all Ethiopian companies. Nonetheless,
these limitations lay the groundwork for future research. The insights provided offer valuable
guidance for policymakers and managers seeking to facilitate internationalization across a
broader spectrum of Ethiopian firms, while also contributing to filling a gap in the existing
literature concerning the Ethiopian context and enhancing understanding of institutional
isomorphism's impact on internationalization.