Cultural Distance and Market Entry Strategy Selection by Nigerian Firms Expanding into East African Markets

This study investigates how cultural distance influences the market entry strategy choices of Nigerian firms expanding into selected East African markets, specifically Kenya, Tanzania, and Ethiopia. As Nigerian businesses increasingly pursue intra-African expansion in response to the African Continental Free Trade Area (AfCFTA) opportunities, understanding the cultural determinants of entry mode decisions becomes strategically important. The study adopts a descriptive survey design and collects data from 80 Nigerian business executives and entrepreneurs with documented East African operations or market entry experience, using structured questionnaires distributed through business associations and trade delegations. The theoretical framework draws on Hofstede's cultural dimensions model and the transaction cost theory of market entry. The study examines how differences in power distance, collectivism, uncertainty avoidance, and long-term orientation between Nigeria and target East African countries shape preferences for joint ventures, wholly owned subsidiaries, or export-based entry. Analytical tools include descriptive statistics and logistic regression to determine predictors of entry mode choice. Preliminary findings suggest that Nigerian firms tend to favour joint ventures in markets perceived as culturally distant, particularly where local language barriers and distinct regulatory traditions exist. The research contributes to the sparse literature on South-South international business expansion and intra-African investment dynamics. Recommendations are directed at Nigerian trade promotion bodies and chambers of commerce to develop cultural intelligence resources that support firms navigating East African market environments. Keywords: cultural distance, market entry, AfCFTA, Nigerian firms, East Africa