The Internationalization of African Firms: Effects of Cultural Differences on the Management of Subsidiaries

Abstract

The recent rise in internationalization of African firms has given rise to an interest in studies on internationalization in Africa. This study examines the motives for internationalization of these firms and the role subsidiaries play in the parent company. It provides a nuanced perspective on cultural differences in African countries and their impact on subsidiary staffing and performance. It is based on a qualitative study of an African firm, IT World, which has subsidiaries in three African countries. The study results suggest that while African countries seem to be culturally close, there are some nuances among them that may be significant for staffing decisions and ultimately for subsidiary performance. The study provides some insights which should help managers develop appropriate strategies for managing internationalization in Africa.