Factors Affecting the Degree of Internationalisation in Jordanian Manufacturing Firms

Abstract

Purpose: The purpose of this study is to examine the factors affecting the degree of internationalisation in Jordanian manufacturing firms. Design/methodology/approach: This study has developed a theoretical framework to examine business factors that impact the degree of internationalisation, including organisational culture, international experience, costs, and technological capabilities. Data were collected from 168 manufacturing firms listed by the Jordan Chamber of Industry. Hypotheses were tested using multiple regression analysis. Study Findings: The findings reveal that three factors affect the degree of internationalisation, organisational culture, international experience, and costs. However, technological capabilities are not an influential factor with regard to the degree of internationalisation. Research limitations/implications: As this study investigates the manufacturing sector only, it would be interesting to examine the extent to which empirical findings apply to other sectors and developing countries. This study is a cross-sectional survey based on cause-effect relationships between business factors and the degree of internationalisation; therefore, a longitudinal methodology would be useful for further research. Practical implications: The creation of an analytical framework designed to improve the degree of internationalisation would enhance the integration of technological capabilities, innovation, production, and investment; in addition, it would be of benefit in terms of international expansion. Technological capacity could be improved by integrating it with other internal resources in order to effectively respond to the expansion of international activities. Originality/value: This study contributes to the internationalisation theory by providing empirical evidence of whether and why business factors influence the internationalisation process, thereby increasing our understanding of how business factors contribute to successfully accessing global markets. Although international business is a practice adopted by firms, the investigation of internationalisation theory is important for both researchers and managers; therefore, this study extends the research conducted on internationalisation, particularly in a developing countries context.