Entry mode strategy, customer engagement, and firm performance

Abstract

Purpose: This study assessed the effect of entry mode strategy on firm performance of selected manufacturers of baby-care product in Lagos State, Nigeria, more so, it examined the moderating effect of customer engagement on the relationship between entry mode strategy and firm performance. Methodology: This study employed a cross-sectional survey design and a sample of 452 employees of twelve manufacturers of baby-products in Lagos State, Nigeria. A moderated regression analysis to test two-way interaction hypotheses was conducted. Findings: The results showed that entry mode strategy has a positive and significant effect on firm performance (R2 =0.042, F(2,449) = 9.865, p <0.000). Further analysis showed that customer engagement explained the increase in firm performance (ΔR2 =0.543, ΔF(1,448) = 587.305 p <0.000) with the introduction of customer engagement as a moderator. Implications: Beyond the performance of entry mode strategy for firms, manager’s needs to deploy customer engagement capability because it’s offers high performance opportunities for the firms who can deploy it. Hence, firm needs to invest in setting up platforms to engage their customers after gaining access to a new international market.