Is Environmental Hostility in the Eyes of the Beholder? Foreignness, Environmental Perception and Response Mechanisms in Nigeria’s Banking Industry

31 Pages Posted: 13 Nov 2019 Last revised: 16 Dec 2019

See all articles by Lilac Nachum

Lilac Nachum

City University of New York - Allen G. Aaronson Department of Marketing & International Business

Chris Ogbechie

Pan-Atlantic University - Lagos Business School

Date Written: November 3, 2019

Abstract

Environmental hostility is posited to halt firms’ development and growth. This leads to the expectations that foreign firms that developed their capabilities in more munificent environments and are able to draw on resources via their global network to compensate for local scarcity would emerge as the predominant competitors in hostile environments. The dominance of local banks of Nigeria’s banking industry conflicts this theoretical expectation. An exploratory study points at differences between foreign and local firms in their perception of Nigeria’s environmental conditions and their subsequent responses to environmental hostility. We use this insight to advance a typology of environmental hostility distinguished by the effectiveness of response mechanisms employed by local and foreign firms to confront it, and employ it to explain variations in the competitive outcomes between foreign and local firms across environments with different types of hostility.

Keywords: environmental hostility, coping mechanisms, environmental psychology, foreignness and environmental perception, competition foreign and local firms, Nigerian banks

JEL Classification: M16, M14

Suggested Citation

Nachum, Lilac and Ogbechie, Chris, Is Environmental Hostility in the Eyes of the Beholder? Foreignness, Environmental Perception and Response Mechanisms in Nigeria’s Banking Industry (November 3, 2019). Baruch College Zicklin School of Business Research Paper No. 2019-11-02. Available at SSRN: https://ssrn.com/abstract=3479978 or http://dx.doi.org/10.2139/ssrn.3479978

Lilac Nachum (Contact Author)

City University of New York - Allen G. Aaronson Department of Marketing & International Business ( email )

One Bernard Baruch Way, B12-240
New York, NY 10010-5585
United States

Chris Ogbechie

Pan-Atlantic University - Lagos Business School ( email )

Km 22 Lekki Epe Expressway
Ajah
Lagos
Nigeria

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
88
PlumX Metrics