Application Of Eclectic Theory Of Internationalisation To Ghanaian Firms: The Case Of Blue Skies Ghana Limited.

Abstract

Internationalisation activities of firms have increased significantly over the last two decades due to globalization. In the past two decades, internationalisation activities of firms from merging and developing countries have increased significantly. Internationalisation activities of firms are becoming more and more diverse due to increasing integration of global markets and opportunities in both developed and developing countries. Using Dunning’s Eclectic theory of internationalisation, this study examines how ownership, location and internalisation advantages have influenced the internationalisation activities of Ghanaian firms using Blue Skies Ghana Limited as a Case Study. Through qualitative approach within an interpretivist paradigm, this study generated in-depth explanations on the internationalisation activities of Blue Skies. Six managerial staff of Blue Skies were purposively selected and interviewed. The data collected was analyzed using the Miles & Huberman (1994) approach to qualitative data analysis. The findings reveal that Blue Skies possesses certain ownership advantages (O), location, and internalisation advantages that have successfully influenced its internationalisation activities. These advantages have strongly informed its internationalisation activities in subsidiary countries such as South Africa, Egypt, United Kingdom and Brazil and its export countries such as France, Netherlands, Belgium, Denmark Dubai and Switzerland. The study concludes that the eclectic theory (OLI paradigm) has successfully explained the international business activity of Blue Skies.