Ethnocentric Behaviour and Business Performance of Multinational Enterprises (MNES): Evidence From South-West Nigeria

The globalised world has become more integrated and has witnessed an unprecedented dispersal of Multinational Enterprises (MNEs) across various nations and regions of the world. Most of these MNEs advertently or inadvertently exhibit tendencies that show them off as ethnocentric- possessing superior culture than those of their host country. This study assessed the effects of ethnocentric behaviours on the performance of MNEs in the South West of Nigeria. Adopting a survey design, the study made use of primary data collected mainly through administering a set of questionnaire to 207 management staff of selected MNEs from Oyo, Lagos and Ogun states respectively. Findings inter alia revealed that: engaging expatriates in strategic positions by MNE's leads to increased operating costs; foreign culture of MNE's home country negatively affects the local acceptance of management techniques by employees in host countries and MNE's standardized marketing strategies encouraged customers' loyalty and patronage in the Nigeria business environments. The work among other things, recommends that local employees in host nations must be incorporated into key decisions to aid MNE's continuous effectiveness. The work, in addition to that, also advised that MNE's should guide against culture shock i.e. the disorientation, cultural risks and stress associated with being in a foreign environment.