FACTORS AFFECTING SMEs’ INTERNATIONALIZATION PROCESS IN THE SOUTHWEST NIGERIA

Abstract

This paper examined factors affecting SMEs’ internationalization process in Southwest Nigeria. Its conceptual framework specifically aimed at analyzing the influence of SME owners’/managers’ characteristics and their firms’ attributes on the companies’ capacity to export the non-oil products. The quantitative data collected through a cross-sectional, multi-stage and purposive sample survey of 279 SME firms in Lagos state were analyzed with binary logistic regression and descriptive statistical methods. The study revealed that SMEs’ capacity to export in the Southwest Nigeria is more likely to be influenced by factors including: SME owners’/managers’ age group, level of education and previous exporting experience, along with firms’ attributes including business registration status, source of raw materials, access to bank loans, government incentive supports and collaboration with foreign partners. Consequently, the two null hypotheses tested in the study were rejected. The study thus, recommends for increased entrepreneurial awareness and improved capacity building for the SMEs in Southwest Nigeria to enhance their foreign exchange generation capability.