Institutions, small local firms’ strategies, and global alliances in sub-Saharan Africa emerging markets

2019 ◽  
Vol 37 (1) ◽  
pp. 156-182
Author(s):  
Adesegun Oyedele ◽  
Fuat Firat
Keyword(s):  
Emerging Markets ◽  
Strategic Alliances ◽  
Trade Credit ◽  
Matching Theory ◽  
Sub Saharan Africa ◽  
Market Conditions ◽  
Content Type ◽  
Sub Saharan ◽  
Alliance Partners ◽  
Local Firms

Purpose The purpose of this paper is to respond to the call of international marketing professionals for more studies on strategies that firms use in response to the complexities of interacting with other institutions in the emerging markets (EMs) of sub-Saharan Africa. The key research question investigated by employing the exploratory qualitative data gathered is: What strategies and global alliances do small local firms (SLFs) in Nigeria adopt to succeed under complex market conditions? Design/methodology/approach The methodology employed is exploratory qualitative research. The authors conducted extended interviews to generate rich case study data from the top management of the selected SLFs in Nigeria. The interview data were assessed using open, axial and selective coding to uncover macro-narratives that guide SLFs’ strategies and global alliances. Findings The macro-narratives derived from the qualitative case analysis reveal a theoretical framework centered on three major elements of competitive strategies in Nigeria: build global capacity and strategic alliances from the get-go; develop local strategic alliances; master matching alliance partners’ needs to create innovative payment plans and, when necessary, shift the transaction cost burden to alliance partners. Matching theory rather than traditional network theories is better at explicating SLFs’ alliances in Nigeria. Implementation of these strategies requires flexible strategic initiatives. Originality/value The study adapts institutional interaction theory, network theory, matching alliance perspective, trade credit theories and the literature on small firms’ strategies in EMs to explicate successful small local firm strategies and global alliances under complex market conditions in Nigeria. The recognition that SLFs regularly migrate and shift the burden of transactions’ cost to multiple stakeholders in the supply network by matching customers and supplier needs is important. The discovery of matching theory in explicating SLFs’ global alliances in Nigeria is unique to this study.

Jumia travel in Africa: expanding the boundaries of the online travel agency business model

2019 ◽  
Vol 74 (6) ◽  
pp. 1167-1178 ◽  
Author(s):  
Maxime Weigert
Keyword(s):  
Emerging Markets ◽  
Business Model ◽  
Sub Saharan Africa ◽  
Travel Agency ◽  
Supply Side ◽  
Content Type ◽  
Side Constraints ◽  
Sub Saharan ◽  
Online Travel ◽  
Online Travel Agency

Purpose This study aims to analyse the business model of Jumia Travel, an innovative online travel agency (OTA) that operates in African markets. Focusing on market conditions and consumer behaviour in sub-Saharan Africa, where barriers to e-commerce are strong and tourism is viewed as a non-essential activity, the study examines the ways in which Jumia Travel carries out its development objectives in Côte d’Ivoire and revamps the OTA business model in relation to market constraints. Design/methodology/approach The study uses a descriptive-qualitative method based on desk research analysis of corporate sources, including websites, annual reports, public interviews of managers and newspaper articles. It also draws on primary sources collected through interviews with the Jumia Travel Côte d’Ivoire country manager. Findings The research shows that the demand- and supply-side constraints of African markets compel Jumia Travel to acquire new skills and competencies to adapt to and capture the Ivorian travel market. In doing so, the company expands the boundaries of the traditional OTA business models found in developed markets, demonstrating the dynamic capabilities that drive OTA business model transformation when deployed in a technologically immature market. Research limitations/implications The Jumia Travel venture provides an insight into the constraints faced by an OTA at the bottom of the pyramid and in emerging markets and shows concretely what skills and competencies are required to overcome them. It is also a new experiment still in the early stages of development, and this limits the proper assessment of sustainability of its business model. Originality/value This study examines a unique experience: an unconventional OTA that concentrates exclusively on domestic and regional markets in sub-Saharan Africa. The business model lens brings into focus the operational limits and innovation opportunities of developing an e-travel business in the fast-growing markets of Africa, characterised by major supply-side constraints, the predominance of low-income consumers and a poorly structured travel industry. In this context, OTAs’ innovation challenge is no longer to disrupt the travel sector in differentiating from competitors, as was the case in the mature markets of the first world but to develop business processes suitable for operating in the constraint-based environment of emerging markets and capturing the rising demand for travel products. This involves co-creating value in linking African hotel providers and clients and increasing economic returns from this value through various business model adaptations designed for and with local consumers and partners.

Impact of credit market conditions on agriculture productivity in Sub-Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed Shuaibu ◽  
Mamello Nchake
Keyword(s):  
Credit Market ◽  
Financial Education ◽  
Least Square ◽  
Sub Saharan Africa ◽  
Alternative Measure ◽  
Market Conditions ◽  
Cross Sectional ◽  
Content Type ◽  
Sub Saharan ◽  
The Impact

PurposeThis study conducts an empirical analysis of the relationship between credit market conditions and agriculture output in Sub-Saharan Africa.Design/methodology/approachThis paper uses a two-stage least square instrumental variable and difference generalised method of moments dynamic panel model because potential reverse causation and endogeneity are addressed.FindingsThe findings show that better credit market conditions contribute to agriculture productivity. The results also show that better infrastructure and availability of agriculture inputs are associated with productivity improvements. The empirical results are robust when an alternative measure of agriculture productivity is used.Research limitations/implicationsAn important research agenda for future studies will be to consider alternative measures of credit market conditions and other intervening variables that influence the nexus. Besides, other methods that account for cross-sectional dependence could also be considered as the impact of credit on agriculture varies across the sub-regions.Practical implicationsThe findings make a case for enhancing credit market access to boost agriculture productivity. There is also a need to implement financial education programs for farmers and ensuring continuous engagement with farmers.Originality/valueAlthough the issue of agriculture finance has been well documented in the literature, few studies have estimated the elasticity of agriculture productivity to changes in credit conditions. Also, our consideration of the intervening role of infrastructure amongst others is an area that has remained relatively unexplored.

Relational capital, strategic alliances and learning

2016 ◽  
Vol 10 (1) ◽  
pp. 155-183 ◽  
Author(s):  
Fang-Yi Lo ◽  
Anastasia Stepicheva ◽  
Tzu-Ju Ann Peng
Keyword(s):  
Emerging Markets ◽  
Strategic Alliances ◽  
Relational Capital ◽  
Negative Effects ◽  
Content Type ◽  
Factors Affecting ◽  
Knowledge And Skills ◽  
Alliance Partners ◽  
Production Knowledge ◽  
The Impact

Purpose The purpose of this paper is to portray and analyze the importance of learning and knowledge transfer in strategic alliances created in the context of emerging markets, Russia and Taiwan in particular, and to identify the influence of relational capital factors on the effectives of learning in strategic alliances. Strategic alliances are one of the main tools companies resort to learn, acquire and develop new knowledge and skills. Design/methodology/approach This research is conducted by case study with four international strategic alliances between Taiwanese and Russian companies. Findings The results showed that the main driver determining the propensity of the companies located in the emerging markets to establish strategic alliances is learning intent. More specifically, the companies are willing to acquire partner’s managerial, marketing and production knowledge and skills. Relational capital created between partners, and presented through the existence of trust, communication and openness proved to have a determinant influence on the effectiveness and quality of learning process in the strategic alliances, especially in the context of the emerging markets. However, there is an inverted-U relationship between the learning potential of an alliance and the strength of relational involvement of the alliance partners, who utilize the certain means to prevent the negative effects of over-embeddedness. Originality/value The major contributions that were made by the study are the following: the authors made an attempt to synthesize different approaches and investigate what are the primary factors affecting strategic alliances formation and operation in the emerging markets context. The authors extended the previous research by reviewing, not only the impact of the relational capital on the process of learning among the partners in the strategic alliances but also by analyzing the forces influencing the strength of these ties. The authors further investigated whether the continuous strengthening of the relational ties is necessary and always beneficial for the companies.

Cross-cultural communication imperatives

2018 ◽  
Vol 14 (2/3) ◽  
pp. 170-187 ◽  
Author(s):  
James Baba Abugre
Keyword(s):  
Business Environment ◽  
Cross Cultural ◽  
Sub Saharan Africa ◽  
Work Outcomes ◽  
Cultural Communication ◽  
Global Business ◽  
Content Type ◽  
Local Staff ◽  
Cross Cultural Communication ◽  
Sub Saharan

Purpose Given the rising expansion of Western multinational companies (MNCs) to the African contexts, the development of expatriates and local employees has become increasingly important to the human resource management of these MNCs. This paper aims to provide critical lessons on cross-cultural communication competences for Western expatriates working in the sub-Saharan Africa business environment. Design/methodology/approach This paper is a qualitative phenomenology that makes use of lived experiences of senior expatriate staff working in Ghana in the form of direct interviews. Findings Results showed that cross-cultural communication competence is very important for Western expatriates’ functioning in sub-Saharan Africa. The findings also established a plethora of cross-cultural communication skills that are essential for Western expatriates’ successful adaptation and work outcomes in Africa. Practical implications This research argues that there is the need for the appreciations of the differing cultural patterns of expatriates and local staff, and this provides the underlying assumptions of intercultural and cross-cultural communication in global business. Originality/value A critical perspective of international business that has scarcely been studied offers lessons for Western expatriates working in sub-Saharan Africa.

A comparison of global suicide terrorism by region before and after 9/11 terrorist attacks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmet Guler ◽  
Mustafa Demir
Keyword(s):  
Time Series ◽  
Interrupted Time Series ◽  
Sub Saharan Africa ◽  
Terrorist Attacks ◽  
Suicide Terrorism ◽  
Content Type ◽  
The World ◽  
Before And After ◽  
Sub Saharan ◽  
Global Terrorism Database

Purpose This study aims to examine the effect of the 9/11 terrorist attacks on suicide terrorism in different regions of the world and changes in the trends in suicide terrorism according to regions before and after 9/11. Design/methodology/approach Using the data obtained from the Global Terrorism Database from 1981 to 2019, the descriptive statistics were computed first and then, independent samples t-tests were run to compare the monthly mean percentage of suicide-terrorism incidents that occurred in each region between the pre-9/11 and the post-9/11 periods. Finally, to statistically assess the effect of the 9/11 attacks and changes in the trends for the dependent variables over time, monthly interrupted time-series analyzes were conducted. Findings The results of monthly interrupted time series analyzes showed that after the 9/11 attacks, the trends for suicide-terrorism rates decreased significantly in three regions including South Asia, the Middle East and North Africa and Europe, while the trend for suicide-terrorism rates increased significantly in Sub-Saharan Africa. However, no statistically significant changes in the trends in suicide-terrorism rates occurred in three regions including North America, East Asia and Central Asia and Southeast Asia before 9/11, during November 2001 or after 9/11. Originality/value This study indicates the critical importance of the 9/11 terrorist attacks in suicide terrorism and its impact on these events in different regions of the world. The research also provides some recommendations concerning the effectiveness of defensive and offensive counterterrorism policies against suicide terrorism.

Factors limiting the adoption of hemp as an alternative sustainable material for green building delivery in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kofi Agyekum ◽  
Emmanuel Adinyira ◽  
James Anthony Oppon
Keyword(s):  
Building Materials ◽  
Green Building ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Sustainable Material ◽  
Environmental Threats ◽  
Additional Information ◽  
Comparative Review ◽  
Sub Saharan ◽  
The Government

PurposeThe increased awareness of global environmental threats like climate change has created an upsurge of interest in low embodied carbon building materials for green building delivery. Though the literature advocates for the use of hemp-based building materials, there is no evidence of studies to explore its potential use in Ghana. Therefore, this study explores the potential factors that limit the adoption of hemp as an alternative sustainable material for green building delivery in Ghana.Design/methodology/approachA structured questionnaire was used to solicit the views of built environment professionals operating in construction, consulting and developer firms. The questions were developed through a comparative review of the related literature and complemented with a pilot review. Data were analysed via descriptive and inferential statistics.FindingsOn the average, the majority of the respondents showed a moderate level of awareness of hemp and its related uses in the construction industry. Also, certain key factors like the perceived association of hemp with marijuana, lack of expertise in the production of hemp-related building materials, farmers not getting the needed clearance for the cultivation of hemp, lack of legislation by the government in the legalisation of hemp and the inadequate knowledge of consumers on the benefits of hemp-based building materials were identified as potential limitations to the adoption of hemp as an alternative sustainable material for green building delivery.Originality/valueThe findings from this study provide insights into a less investigated area in sub-Saharan Africa and further provide new and additional information to the current state-of-the-art on the potential for the use of hemp in the building construction sector.

Shadow economy in Africa: how relevant is financial inclusion?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
Shadow Economy ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Development Indicators ◽  
Panel Data Estimation ◽  
Sub Saharan ◽  
Data Estimation ◽  
Toda And Yamamoto

Purpose This study aims to investigate the possible relationship between financial inclusion and shadow economy in selected African countries. Design/methodology/approach The study uses panel data estimation technique and Toda and Yamamoto causality approach. The data of selected African counties over a period of 2005–2015 are sourced from World Bank Development Indicators, International Monetary Fund International Financial statistics database and International Country Risk Guide. Findings The results show that financial inclusion reduces the size of shadow economy. The causality results show that there is a unidirectional causality moving from financial inclusion to shadow economy. The results demonstrate that a country with lower level of corruption and higher level of growth can benefit more in reducing the size of shadow economy through financial inclusion. Originality/value This study provides the first evidence of the link between financial inclusion and shadow economy from the Sub-Saharan Africa perspective. The study suggests that financial inclusion may be useful in affecting the size of shadow economy in Africa.

Information technologies and seaport operational efficiency

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandra Adabere ◽  
Kwame Owusu Kwateng ◽  
Esther Dzidzah ◽  
Francis Tetteh Kamewor
Keyword(s):  
Structural Equation ◽  
Information Technologies ◽  
Operational Efficiency ◽  
Sub Saharan Africa ◽  
Primary Data ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Sub Saharan ◽  
Positive Direct

PurposeThe introduction of information technology (IT) in port operations has been a tremendous contributor to transformation in world trade. This study was carried out to examine the influence of IT on the efficiency of seaport operations.Design/methodology/approachThe study is quantitative in nature, and it relied on a closed-ended self-administered questionnaire to collect primary data. Structural equation modeling (SEM) was used to test the theoretical model and hypothesis.FindingsThe results indicate that IT has a positive direct effect on port operational efficiency (OE) and an indirect effect on port OE through organizational culture (OC). The mediating role of OC is statistically insignificant.Originality/valueThis is among the first few attempts in Sub-Saharan Africa (SSA) that provides researchers with a contemporary view of IT and seaport operations.

“It’s better I’m dead”: oppression and suicidal ideation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lisa Reber
Keyword(s):  
Suicidal Ideation ◽  
Host Country ◽  
Migrant Workers ◽  
Well Being ◽  
Environmental Context ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Temporary Migrant ◽  
Sub Saharan ◽  
First Time

Purpose Anecdotal accounts of suicide among temporary low-wage migrant workers in the UAE are numerous, but unofficial and qualitative accounts remain unexplored. This study aims to examine how the socio-environmental context can lead some low-wage migrants, irrespective of their nationality or culture, to contemplate suicide for the first time after arriving in the host country. Design/methodology/approach The findings draw from ten months of qualitative fieldwork (2015–2016) and in-depth interviews conducted with 44 temporary migrant workers from sub-Saharan Africa and South Asia, earning in the lowest wage bracket in Dubai. The study used a non-probabilistic, purposive sampling approach to select participants. Three criteria drove eligibility: participants had to reside in the UAE, be non-national and earn Dh1500 (US$408) or less a month. Otherwise, diversity was sought in regard to nationality, occupation and employer. Findings Eight (18%) of the 44 study participants interviewed admitted to engaging in suicidal thoughts for the first time after arriving in the UAE. The findings suggest that for low-wage migrants working in certain socio-environmental contexts, the religious, gendered or other cultural or group characteristics or patterns that may be predictors of suicide in migrants’ country of origin may become secondary or possibly even irrelevant when one is forced to survive under conditions that by most objective standards would be deemed not only oppressive but extremely exploitative and abusive. Originality/value This study contributes to understandings of how the emotional and psychological well-being of temporary foreign low-wage migrant workers can be impacted by the socio-environmental context of the host country. It is a first step in understanding the intimate thoughts of low-wage migrant workers on the topic of suicidality, furthering our understanding of suicidal ideation and the factors that can contribute to it.

Economic freedom and tax revenue performance in sub-Saharan Africa

2018 ◽  
Vol 16 (4) ◽  
pp. 610-638 ◽  
Author(s):  
James Oladapo Alabede
Keyword(s):  
Capita Income ◽  
Economic Freedom ◽  
Sub Saharan Africa ◽  
Tax Revenue ◽  
Traditional Theory ◽  
Per Capita Income ◽  
Content Type ◽  
Tax Effort ◽  
Per Capita ◽  
Sub Saharan

Purpose This study aims to expand the conventional tax effort model to incorporate relevant economic freedom variables to investigate whether economic freedom fosters tax revenue performance in `sub-Saharan Africa (SSA). Design/methodology/approach This study uses data from 42 countries across the four sub-regions of SSA from the period 2005 to 2012 with 252 year-country observations in an unbalanced panel method. The data were statistically treated using feasible generalised least square (FGLS) and panel-corrected standard errors (PCSE) estimate techniques. Findings The findings are twofold. First, the principal finding of the study suggests that economic freedom promotes tax revenue performance. Precisely, the FGLS analysis indicates that property rights freedom, freedom from corruption and investment freedom, as well as the composite economic freedom, exerted positive significant impact on tax revenue performance. This implies that country, which attained high degree of economic freedom, is likely to have higher tax-to-GDP ratio than a country with low level of economic freedom. Secondly, the results of most conventional variables conform to the prediction in the traditional theory except per capita income. Specifically, agriculture share in GDP and per capita income indicate negative significant relationship with tax revenue performance. Originality/value Because little is known empirically about the connection between economic freedom and tax revenue performance, this study extended the conventional tax effort model to incorporate the economic freedom to bridge the knowledge gap due to the absence of empirical evidence on the relationship between economic freedom and tax effort.

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