Ways to win: strategic choices, institutions and performance in sub-Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Young Hoon An ◽  
Soonkyoo Choe ◽  
Jihoon Kang
Keyword(s):  
Firm Performance ◽  
Host Country ◽  
Institutional Development ◽  
Sub Saharan Africa ◽  
Foreign Firms ◽  
Strategic Choices ◽  
African Countries ◽  
Corporate Political Activity ◽  
Content Type ◽  
And Performance

Purpose The purpose of this study is to analyse the effects of market-based and nonmarket-based strategies on firm performance in African countries. This study also investigates host country institutions' effect on the relationship between firm strategies and performance in these countries. Design/methodology/approach Data of 1,276 firms in five African countries were obtained from two different sources: The World Bank Enterprise Database and The Global Competitiveness Report. Two-stage least squares regression was applied. Findings Both market-based strategies and corporate political activity (CPA)improve firm performance in the African countries included in the analysis. Institutional development also has a direct positive impact on firm performance. However, the effect of CPA weakens as the host country shifts towards more efficient, market-oriented institutions. Furthermore, the results show that local African firms benefit more from institutional development than foreign firms. Originality/value The paper confirms and extends our understanding of the dynamic fit between institutions and strategy by highlighting the moderating role of institutional development on CPA and market-based strategies in enhancing firm performance.

Regulatory environment, environmental dynamism, political ties, and performance

2014 ◽  
Vol 21 (2) ◽  
pp. 212-230 ◽  
Author(s):  
Samuel Adomako ◽  
Albert Danso
Keyword(s):  
Firm Performance ◽  
Sub Saharan Africa ◽  
Primary Data ◽  
Regulatory Environment ◽  
Entrepreneurial Firms ◽  
Environmental Dynamism ◽  
Content Type ◽  
Political Ties ◽  
Sub Saharan ◽  
And Performance

Purpose – Regulatory environment, environmental dynamism, and political ties are typically modelled as separate antecedents of firm performance. However, the boundary conditions for such models are less examined in a developing country context where regulatory environments have been argued to be weak. Accordingly, drawing on institutional and social capital theories, the purpose of this paper is to examine the interrelationship between regulatory environment, political ties, environmental dynamism, and firm performance. Design/methodology/approach – The study uses primary data gathered from 372 entrepreneurial firms in Nigeria, a Sub-Saharan African country. Findings – The findings of the paper suggest that that regulatory environment is negatively related to firm performance. However, political ties and environmental dynamism moderate the regulatory environment-firm performance relationship such that such relationship is positive and significant. Research limitations/implications – First, the study provides important insights on how weak and underdeveloped regulatory environment negatively affect the performance of firms. In other words, the study represents a response to call for the development of better regulatory environment since regulatory environment plays significant role in firm performance. Second, this study also demonstrates the importance of political ties and environment dynamism on firm performance in an emerging economy such as Nigeria where regulatory environment is weak. Originality/value – To the authors’ knowledge, this study is the first study from the perspective of Sub-Saharan Africa that examine the moderating role of political ties and environmental dynamism on regulatory environment-firm performance relationship.

Determinants of the firm performance of returnee entrepreneurs in Somalia: the effects of external environmental conditions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed-Abdullahi Mohamed ◽  
Asmat-Nizam Abdul-Talib ◽  
AfifahAlwani Ramlee
Keyword(s):  
Firm Performance ◽  
Conceptual Framework ◽  
Empirical Studies ◽  
Theoretical Background ◽  
Future Research ◽  
African Countries ◽  
Content Type ◽  
Somali Diaspora ◽  
Post Conflict ◽  
Perceived Environmental Uncertainty

Purpose This study aims to examine the role of returning Somali diaspora entrepreneurs on firm performance and their perceived environmental obstacles. Design/methodology/approach The paper draws on a broad literature review and covers a theoretical background to develop a research framework. It presents several propositions to be empirically tested to determine the influence of returnee entrepreneurs’ success and the challenges they face in the process. Findings The paper offers an overview of how Somali diaspora returnee entrepreneurs can use their resources to succeed in their business and the possible environmental uncertainties that could hinder them. The study highlights some under-researched areas and provides future research directions. Research limitations/implications A research investigation is needed to test the proposed conceptual framework empirically. Further research is also recommended to use other predictors when investigating the perceived environmental uncertainty faced by returnee entrepreneurs. Practical implications In the diaspora entrepreneurship literature, returnee entrepreneurs in post-conflict African countries did not get enough attention. Hence, the study will contribute theoretically to the literature. Originality/value The paper provides a conceptual framework that will help understand returnee entrepreneurs in post-conflict states in Africa, paving the way for empirical studies on the topic.

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.

“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.

Corporate governance practices and firm performance: a configurational analysis across corporate life cycles

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hala M. Amin ◽  
Ehab K.A. Mohamed ◽  
Mostaq M. Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Analytical Approach ◽  
Research Study ◽  
Performance Outcomes ◽  
Life Cycles ◽  
Related Activity ◽  
Content Type ◽  
And Performance ◽  
Country Specific

Purpose This study aims to explore corporate governance (CG) practices that can lead to firms’ better performance in different organizational life cycles. The authors propose a configurational approach to explore how a set of CG practices combine in bundles to achieve high performance outcomes for firms across their corporate life cycles. Design/methodology/approach Fuzzy-set qualitative comparative analysis was used to analyze a sample of data of 21 countries and 9 industries. Data referred to the period of 9 years extending from the year 2005 to the year 2013. Findings This study reveals that there are multiple CG practices that exist through firms that can achieve high firm performance. Moreover, CG practices combine in different ways for firms in their growth, maturity and declining stages. Research limitations/implications This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles. Practical implications The current study draws attention to the policymakers’ need to assess the current level of regulatory and competitive development of their countries and form policy accordingly. The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Social implications The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Originality/value This study broadening the focus of CG studies to include a rigorous explanation of the global CG phenomena and to provide effective solutions for the practitioners. Contribution to Impact This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles.

Corporate governance, globalization and firm performance in emerging economies

2018 ◽  
Vol 67 (8) ◽  
pp. 1310-1333 ◽  
Author(s):  
Neha Saini ◽  
Monica Singhania
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Panel Data ◽  
Foreign Capital ◽  
Good Governance ◽  
Foreign Ownership ◽  
Foreign Firms ◽  
Content Type ◽  
Governance Practices ◽  
The Relationship

PurposeThe purpose of this paper is to examine relationship between corporate governance (CG) and firm performance for a set of 255 foreign-funded firms in the form of foreign direct investment (FDI) and private equity (PE). The authors employ a wide range of CG measures including board size, meetings, board gender and foreign ownership which are used as the proxy of globalisation and control variables like firm age, leverage, firm size and capital expenditure to arrive at a conclusion.Design/methodology/approachPanel data set of 255 (187 companies funded by foreign capital in the form of FDI, and 68 companies having foreign capital in the form PE) companies listed on Bombay Stock Exchange, for the period of eight years (2008–2015) are analysed by using static (fixed and random effects) and dynamic (generalised method of moments (GMM)) panel data specifications to examine the relationship among CG, globalisation and firm performance.FindingsThe empirical results of static model indicate the relationship between CG and performance of foreign firms, which are not very strong in India. This is due to the fact that most of the firms are not following the guidelines and regulations strictly in the initial period of sample years. Diversity in board is found as an important variable in accessing firm performance. And the authors also found that foreign firms are very particular about the implementation of CG norms. The results of GMM model highlight the interaction term of foreign ownership with governance indicators. CG is having a positive and significant impact over performance, inferring that higher foreign ownership (in the form of FDI and PE) in firm leading to positive effect on profitability.Practical implicationsThe investor’s preference of financing a unit is guided by the performance of a firm. Investors are more inclined towards high-performing firms, and hence higher profitability leads to higher inflow of capital. The result indicates that higher accounting and market performance may be achieved by good governance practices, in turn, leading to reduced agency costs. Countries with high governance scores attract more of foreign capital. Similar to the best governed countries, the companies having good governance practices attract more foreign inflows in the form of capital.Originality/valueWhile previous literature considered a single measurement framework in the form of a CG index, the authors tried to incorporate a range of CG indicators to study the effect of globalisation and CG on firm performance. The authors segregated foreign-owned funds into two parts, especially FDI and PE. This paper examined heterogeneity in the form of FDI-funded and PE-funded firms, as no prior literature is available which has evaluated different sets of foreign funds simultaneously on CG.

Board diversity and performance in a masculine, aged and glocal supply chain: new empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Giuseppe Giulio Calabrese ◽  
Alessandro Manello
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Empirical Evidence ◽  
Linear Models ◽  
Data Set ◽  
Board Diversity ◽  
Content Type ◽  
Automotive Supply Chain ◽  
And Performance ◽  
Automotive Supply

Purpose This study aims to contribute to the debate on the relationship between board diversity and performance, a hot topic for scholars and shareholders. A number of studies have found contrasting impacts of board diversity on firm performance and this paper adds new and original evidence in the context of the automotive supply chain focusing on gender, age and nationality diversity. Design/methodology/approach The authors propose a triple stage empirical analysis. First, the authors use linear models according to different performance indexes for investigating diversity (gender, age and nationality) within the board of directors and executives. Second, the authors investigate the issue of diversity in different contexts such as position in the supply chain, nationality of the owner and family/corporate ownership. Finally, the authors use non-linear models to find a better combination of diversity in terms of gender and nationality for retrieving some managerial implications. Findings First, the authors demonstrate a robust positive effect of women in board representation on firm performance in terms of profitability and firm risk. In the case of, age and nationality the results are more equivocal in particular for the former. Second, the authors depict board diversity in different contexts as follows: positioning in the supply chain, type and nationality of the final owner. Again, gender heterogeneity is more adequate in the complex firm as Tier 1 suppliers, corporate and foreign company. Originality/value The authors focused the analysis on a specific industry, shedding light on the main specificities linked to operating in certain phases of the supply chain, a substantial novelty in this field. The empirical evidence is based on a very large data set containing quantitative and qualitative information on a representative sample of 1,538 firms operating in the Italian automotive supply chain, one of the most relevant in Europe.

Interactive radio, social network sites and development in Africa: a literature review study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcos Komodromos
Keyword(s):  
Social Network ◽  
Literature Review ◽  
Mass Communication ◽  
Social Network Sites ◽  
Sub Saharan Africa ◽  
Agriculture Education ◽  
African Countries ◽  
Content Type ◽  
Study Results ◽  
The Impact

Purpose The technology determinism theory facilitated in assessing the impact of interactive radio and social network sites (SNSs) on development factors such as education, agriculture, health, and governance, by conducting an integrative and comprehensive literature review focusing on African countries. This paper aims to conduct this literature review to provide comprehensive empirical evidence on the impact of interactive radio and SNSs on development in Africa. Design/methodology/approach This study examined articles that were retrieved from online databases including EBSCOhost, Elsevier, Science Direct, SAGE Journals, Springer and Wiley Online Library. The keywords used included interactive radio, radio, development in Africa, SNS, agriculture, education, health, peace and governance. Search phrases were formulated using boolean operators “AND” and “OR.” Findings Study results revealed that interactive radio and SNSs improve knowledge among farmers and allow the dissemination of information on innovative agricultural techniques, which supports the adoption of sustainable practices. Interactive radio promotes political accountability because the strategies provide the voiceless and powerless communities with a platform to express themselves. This paper discovers that the incorporation of SNS with existing multimedia communication facilitates the dissemination of health-related information on illnesses such as Ebola, HIV, hypertension, diabetes and Polio, and interactive radio and SNS promote education among marginalized communities and under-served rural schools. Research limitations/implications The findings on the impact of interactive radio and SNSs do not represent all 54 countries in Africa. Although the studies included in this literature review were conducted in several countries such as South Africa, Nigeria, Somalia, Kenya, Malawi, Ghana, Tanzania, Uganda and Zambia, this limited the generalizability of the findings and recommendations. Also, the other potential limitation is that using the inclusion-exclusion criteria could have resulted in bias when selecting the studies to include in the review. Practical implications The paper might serve as a valuable source of information for students, academics and entrepreneurs where the impact of interactive radio and SNSs on agriculture, education, health and governance, which are core determinants of development in Africa, has been assessed for further case studies in this area. Social implications The use of interactive radio has helped in decreasing health issues caused by a deficiency in vitamin A among children in sub-Saharan Africa. Originality/value The development of sustainable and effective interactive radio programs is dependent on the collaboration of the core stakeholders such as governmental ministries, donor organizations and the mass communication sector. Numerous open sources on technology radio stations are available to employ social media managers to help in the application of knowledge.

Impact of corruption on Chinese investment in African countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shilin Yuan ◽  
Haiyang Chen ◽  
Wei Zhang
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Host Country ◽  
Practical Implication ◽  
Host Countries ◽  
African Countries ◽  
Control Variables ◽  
Content Type ◽  
The Impact ◽  
New Evidence

Purpose This paper aims to examine the impact of host country corruption on foreign direct investment (FDI) from China to developing countries in Africa. With the opposing arguments that corruption is detrimental to or instrumental in FDI and mixed empirical evidence, this paper contributes to the literature by providing new evidence on the issue. Additionally, little research has been done on the impact of corruption on FDI made by developing country multinationals to developing countries. This paper fills a void in this area. Design/methodology/approach Based on the published literature, as well as China and Africa contexts, the authors develop hypotheses that host countries with low corruption receive more FDI and resource-seeking investments weaken the relationship. The annual stock of Chinese FDI in 35 African countries, host country corruption data and other control variables from 2007 to 2015 are collected. Feasible generalized least squares models are used to test the hypotheses. Additional robustness tests are also conducted. Findings The findings support the hypotheses. Specifically, Chinese investors make more investments in host countries with low corruption except for resource-seeking investments in resource-rich host counties. The results are statistically significant accounting for various control variables. The results of the robustness tests show that the main findings are robust. Originality/value First, this study provides new evidence on the impact of corruption on FDI. Second, this study also fills a void by examining FDI from a developing country, China to other developing countries in Africa. Finally, this study also has a practical implication for Chinese multinationals investing in Africa.

A critical analysis of water PPP failures in sub-Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salman Tariq ◽  
Xueqing Zhang
Keyword(s):  
Construction Management ◽  
Design Methodology ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Rigorous Approach ◽  
First Case ◽  
Management Perspective ◽  
Sub Saharan

PurposeTop-down pressure from donors, public sector inefficiencies and fund deficits have steered the introduction of public–private partnerships (PPPs) in sub-Saharan Africa. However, PPP activities in the water sector have been quite insignificant compared to other infrastructure sectors in this region. In addition, a number of water PPPs have encountered great difficulties and subsequent failures. This study aims at unveiling the underlying reasons behind failures.Design/methodology/approachThis study has classified the failure types of water PPPs and reviewed the development of water PPPs in sub-Saharan Africa to identify failed ones. Eight failed case studies are completed through the rigorous approach of event sequence mapping.FindingsNine root causes of water PPP failure are identified through a thorough examination of these failed water PPP cases and the interrelationships between these failure causes are established. The failure causes are further generalized through literature focusing on water PPP failures in developing countries and problematic issues that hinder the implementation of successful water PPPs across different Sub-Saharan African countries. Recommendations are provided for future improvements in carrying out water PPPs in Sub-Saharan Africa by learning past lessons and drawing experiences.Originality/valueThis is the first case study on water PPP failures in Sub-Saharan Africa from a construction management perspective. This study will help governments and the private sector in developing stronger future water PPPs.

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