Impact of Internationalisation & Cross-Cultural Practices on Organisational Performance In Nigerian Banking Industry: A Case Study Of Guaranty Trust Bank Plc

Abstract

Research Background: Studies on internationalisation of firms have identified several benefits, including competitive advantage, expansion, and profit. However, research into the effect of internationalisation of firms on performance in Nigeria have received sufficient attention. It is on this premise that this study is investigating one of Nigeria's leading commercial banks (Guaranty Trust Bank and First Bank of Nigeria). The bank has embraced internationalisation for some time now in its operations, with several subsidiaries established in different countries abroad. Research Purpose: Internationalization has become a strategic issue for business organisations because of its importance in exposing an organisation to global markets. This study investigates the impact of internationalization on organisational performance. Research Questions: This study provides answers to the following research questions: 1. What are the motives behind the internationalisation of the Nigerian banking industry? 2. What are the factors influencing the internationalisation process of the Nigerian banking industry? 3. What are the effects of these factors on the internationalisation of the Nigerian banking industry? 4. What is the impact of cross-cultural practices on organisational performance in the Nigerian Banking industry? Method: The study involved a cross-section research design. Primary data was collected using a questionnaire administered to top managerial staff of Guaranty Trust Bank in South-west Nigeria. Both descriptive and inferential analysis was performed. Conclusion: The study has shown that market and profit remain the principal motive for international business expansion in the Nigerian banking industry. The study also found internationalisation had positive effect on business performance. Internationalisation factors that predicted business performance were market seeking, network and cooperation and resource seeking. Also, there was a positive effect of cross-cultural practices on international business performance of banks.