Literature Review: Internationalization of Local Agricultural Business in Nigeria

Added on - 16 Sep 2019

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Table of ContentsIntroduction...............................................................................................................................................1Literature Review......................................................................................................................................1Conclusion................................................................................................................................................13References................................................................................................................................................15
1IntroductionIn this paper literature review has been written. The literature review is on the strategies for theSmall and Medium Enterprise's internationalization of the local agricultural business in Nigeria.In a way to complete this literature review, the resources which have been analyzed and referredare all secondary in nature. Various previous research paper and report has been reviewed andanalyzed mainly to complete this literature review in an effective manner. AT the end of thisentire literature review the proper list of references has also been provided in APA style.Nigerian Agribusiness industryNigeria has the biggesteconomy in Africa.Agriculture still remains the largest sector of theNigerian economy and employs two-thirds of the entire labour force, the production hurdles havesignificantly stifled the performance of the sector. Over the past 20 years, value-added per capitain agriculture has risen by less than 1 per cent annually.It has subsistence farming segment which has not stayed aware of quick populace development.It is found from the history that Nigeria is well in agribusiness management. It is one of thecountries which are engaged in the activity of agribusiness. Responding to the needs of the hourit becomes prime importance for the Nigerian Small and medium agribusiness enterprises to gointernationalization. It is often found that while planning to go internationalization the processmay involve a lot of challenges, barriers, and opportunity. But Nigerian small and medium scaleagri based enterprises should respond to the challenges in an effective manner.Literature ReviewSMEinternationalization is creating at an aggravating pace in a respect that it will support themarket scenarios where the global market is referred for showing the overall significance of
2SMEs to both neighbourhood and overall markets. Starting late, convey has transformed into akey kind of SME internationalization. The cultivating portion has wound up being fundamentalto the improvement of the Nigerian economy; to the extent innovative outcomes and occupationcreation, a considerable amount of these is a sound delegate for SMEs ability to convey theirthings.It can besaid that it becomes prime importance for the small and medium agribusinessenterprises go internationalization. It is because it will lead them to performeffectively as well asefficiently in the stiff competitive market condition at the global level. Internationalization willenable the small and medium enterprise to develop a global presence and to have and earnhandsome profit. It is fact that more than 69 per cent of the population in Nigeria is engaged inagriculture business and production (Peng, M. W. 2016). It is providing near about 35 per centemployment as per the 2010 statistics. Hence, it can be said that going internalization for theNigerian agriculture business unit’s especially small and medium enterprise is of significantimportance. It is because it will enable the agribusiness enterprises to perform well at the globallevel and also it will help in increasing the customer base.But at the same time selecting the beststrategies and method to adopt while going internationalization should also be considered andfocused at large. It is because applying and adopting proper internationalization process andstrategiesplay a vital role in making the small and medium enterprise achieve its predeterminedobjectives and goals in an effective manner. There are various strategies and method of goinginternationalization which a small and medium enterprise can adopt and follow in internalizationprocess.Nigerian SMEs have thought of new things and organizations, or better methodologies forpackaging the things with the objective that they are speaking to worldwide buyers. It takes an
3ambitious concentrated firm in Nigeria to present a huge amount of money for conveyingwithout considering the high danger portrayed in with going abroad that is internationalization.Many exchanging SMEs will go to the level of getting from the banks, using their homesasassurance security without considering the last result of losing their homes with the trueobjective to convey into an outside country. Ambitious centred SMEs in Nigeria can alongtheselines be recognized as firms with a capacity to proactively look for after overall businessestablishment that is innovative paying little personality to the threats included. For a firm tohave the ability to make an elucidation of benefits into purposes of intrigue and execution, thefirm needs obvious capacities. It is basic to reliably make, join, and reconfigure firms' aptitudesand limits with the true objective to adjust to change in the business focus. It has been perceivedby (Hermannsdottir et. al. 2007) that resourceful performance can be critical in achieving firmexecution in an outside market if the internal and external parts are all around balanced.Internationalization- TheoryUppsala Theory of Internationalization- Internationalization viewpoint has been inspired by theScandinavian. The main highlight of this theory is that there are many reason which make thesmall and medium enterprise to go internalization such as if an enterprises want to increase salesand export and import, needs to establish sound relationship with the foreign countries, need tobuild global presence, want to exploit the available resources in an effective manner (Meyer, K.,and Peng, M. W. 2016).Location advantage theory- According to this theory small and medium enterprises try to accessthe advantage of the location. It is that if an enterprise observes that particular location is verymuch feasible for its growth as there is ample cheap and skilled labour are available then surely
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