This slide shows the result of a recent study of one of africon´s employees. Aim was to identify firm capabilities, that have an impact on various aspects of performance of German companies operating in Nigeria. The study was based on existing research findings, as well as a survey of senior staff of 40 German firms operating in the country with at least with an appointed distributor (or own staff etc.). As only very few German firms are invested in large own local structures, it emerged that especially the marketing capability in terms of brand building, gathering market intelligence and strong sales channels are key for success locally. Efforts by the German firms can be supported by strong partners – leaving all the work to these partners is however not enough. Interestingly, factors such as adapting products to local needs, lobbying the German or Nigerian government, as well as attending Nigeria focused trade shows did not have a significant impact.

1. 16/05/2019 1© africon GmbH 2018
Source:CriticalsuccessfactorsofGermanfirmsoperatinginNigeria(ErikDeitersen,DeMontfortUniversity,2018)
Key capabilities of German firms in Nigeria
Key success factors of German firms in Nigeria are their
marketing skills and the strength of their network locally.
The impact of key firm capabilities on firm performance among German firms in operating in Nigeria
Networking Marketing Performance
Sub-aspects:
•Wide contact
network
•Close partners
•Strong* partners
Sub-aspects:
•Strong brand in
Nigeria
•Strong sales
channels
•Collecting
market data
Sub-aspects:
•Cash flow
•Profits
•Sales & sales
growth
•Market share
*strong partners: companies with strong market knowledge and access that possess unique competencies
..supports.. ..supports..
This relationship is statistically weaker than the
other. Networking strength alone explains 21% in
the variance in marketing.
Statistically, differences in marketing
strength alone explain 44.6% of the
variance in performance.
Aim & scope of the study: Only few German firms operate in Africa and higher than average share of those operating
in Nigeria struggle to perform well. This study aimed to identify key firm skills („capabilities“), that help German firms
to succeed in Nigeria. Basis was a survey of senior management of 40 German firms in Nigeria. 5 firm resources and
capabilities were tested for their statistial assoication with performance.