scholarly journals Entrepreneurial Workaround Practices in Severe Institutional Voids: Evidence From Kenya

2020 ◽  
pp. 104225872092989
Author(s):  
Alisa Sydow ◽  
Benedetto Lorenzo Cannatelli ◽  
Alessandro Giudici ◽  
Mario Molteni
Keyword(s):  
Family Relationships ◽  
Developing Economies ◽  
Informal Institutions ◽  
Institutional Voids ◽  
African Countries ◽  
Doing Business ◽  
Institutional Infrastructure ◽  
Business Creation ◽  
Social Value Creation ◽  
African Entrepreneurship

Entrepreneurs in developing economies try to cope with weak or absent formal institutions—often referred to as “institutional voids”—by relying extensively on intermediary organizations such as business incubators and development organizations or informal institutions such as political, kinship, or family relationships. However, in many African countries, intermediary support is limited and informal institutions are also unreliable, adding risks and costs to doing business and increasing the severity of institutional voids in the surrounding ecosystem. We investigate the practices followed by 47 commercial entrepreneurs in Kenya to “work around” these severe institutional voids to achieve their goals of business creation and growth. We find that severe institutional voids stimulate the hybridization of goals to include social value creation, create a need for a more strategic orchestration of business relationships, and motivate entrepreneurs to proactively cross-brace the institutional infrastructure around them. We contribute by unveiling the important role of entrepreneurs as microinstitutional agents in developing economies and by detailing how commercial and social goals become intertwined in the context of African entrepreneurship.

scholarly journals Social Value Creation in Institutional Voids: A Business Model Perspective

2020 ◽  
pp. 000765032098228
Author(s):  
Addisu A. Lashitew ◽  
Rob van Tulder ◽  
Lukas Muche
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Developing Economies ◽  
Boundary Spanning ◽  
Information And Communications Technology ◽  
Social Value ◽  
Institutional Voids ◽  
Model Framework ◽  
Social Value Creation

The literature on Base of the Pyramid (BoP) strategies emphasizes that creating social value requires collaborative, multi-stakeholder business approaches. However, there is limited understanding of how businesses can successfully coordinate such value creation processes in the developing economies that face significant institutional voids. This study adopts a business model perspective for analyzing social value creation processes that span organizational boundaries. We introduce a novel, theoretically grounded business model framework that helps conceptualize social value by locating the various loci of value creation, and the stakeholders that partake in creating and capturing this value. We subsequently analyze the mechanisms of social value creation in M-Pesa, a renowned boundary-spanning mobile money system that has advanced financial inclusion among tens of millions of users in Kenya. The results show that information and communications technology can help advance social value creation by reducing the cost of coordinating boundary-spanning business models that integrate diverse societal stakeholders. The results further point to uneven distributional outcomes in self-governing social value creation strategies where the focal firm plays a coordinating role.

scholarly journals Innovative entrepreneurship in emerging and developing economies: the effects of entrepreneurial competancies and institutional voids

2021 ◽  
Author(s):  
Amirmahmood Amini Sedeh ◽  
Amir Pezeshkan ◽  
Rosa Caiazza
Keyword(s):  
Developing Countries ◽  
Developing Economies ◽  
Negative Impact ◽  
Institutional Voids ◽  
Developed Economies ◽  
Key Drivers ◽  
Innovation Barriers ◽  
Entrepreneurial Competencies ◽  
Emerging And Developing Countries ◽  
Different Levels

AbstractInnovative entrepreneurship is one of the key drivers of economic development particularly for less developed economies where the economic growth is at the forefront of policymakers’ agenda. Yet, the research on how various factors at different levels interact and bring about innovative entrepreneurship in emerging and developing countries remains relatively scarce. We address this issue by developing a multilevel framework that explains how entrepreneurial competencies attenuate the negative impact of innovation barriers. Our analysis on a sample of individuals from 24 economies, 17 developing and 7 emerging countries, reveals that entrepreneurial competencies become more instrumental for innovative entrepreneurship when general, supply-side, and demand-side innovation barriers are higher. The findings offer unique insights to policymakers particularly in developing countries interested in promoting innovative entrepreneurship and to entrepreneurs and investors seeking to establish and support innovative ventures.

scholarly journals Adaptation of Globalization and Their Effect to the Tanzania Economic Growth

2018 ◽  
Vol 13 (8) ◽  
pp. 217
Author(s):  
Japhet Jacksoni Katanga ◽  
Seleman Pharles
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
International Cooperation ◽  
Developing Economies ◽  
Economic Inequality ◽  
Developed Countries ◽  
Advance Technology ◽  
African Countries ◽  
The Social

Globalization can be defined as the process based on international cooperation strategies, the aims of globalization is to expanded the operation of a certain business or service to become into a worldwide level, Globalization facilitate the modern advance technology which help community to undergo the social, political and economic development. Globalization economic has reinforced the margination for African developing economies and make to be dependent for the few primary commodities or service whereby the price and demand are extreme determine by externally. On this outcome it lead some of the African countries to be turn into poverty or economic inequality due let their own resources being determine by developed countries. On these paper you will get a chance to oversee the effect of adaption globalization to Tanzania economic growth.

scholarly journals An Examination of Drivers of Financial development: Evidence in West African Countries.

2018 ◽  
Vol 6 (1) ◽  
pp. 132-143
Author(s):  
Adewosi, O. Adegoke ◽  
Manu Donga ◽  
Adamu Idi ◽  
Buba Abdullahi
Keyword(s):  
Financial Development ◽  
Developing Economies ◽  
Negative Impact ◽  
Trade Openness ◽  
Government Expenditure ◽  
Political Stability ◽  
Vital Role ◽  
West African ◽  
African Countries ◽  
Panel Data Estimation

Financial development has been considered to play a vital role in promoting rapid growth and development of the developing economies. This paper examined the drivers of financial development in West African Countries. Benin Republic, Burkina Faso, Cape Verde, Ivory Coast, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo over the period of 2000 to 2015, with the proper utilization of panel data estimation technique on the annual country data obtained from World Development Indicators (WDI) 2016 and Worldwide Governance Indicators (WGI) 2016. The results reveals that some important variables such as coefficient of rule of law, political stability, foreign direct investment, government expenditure, inflation and savings positively determined financial development. While, credit to private sector, GDP, interest rate, trade openness, and capital formation were found to negative impact on financial development. The study then recommends amongst others formulation and implementation of fiscal and monetary policies that foster financial development.

scholarly journals GOOD GOVERNANCE AND PROTECTION OF HUMAN RIGHTS IN AFRICA: THE ROLE OF THE LEGISLATURE IN THE TWENTY-FIRST CENTURY

2012 ◽  
Vol 19 (1) ◽  
Author(s):  
R K Salman
Keyword(s):  
Human Rights ◽  
Good Governance ◽  
First Century ◽  
Modern Concept ◽  
African Countries ◽  
Level Of Functioning ◽  
Institutional Infrastructure ◽  
Human Rights Abuse ◽  
Effective Performance ◽  
Protection Of Human Rights

This article is intended to detail the extent of human rights abuse in Africa and broad conceptual issues of good governance and why it is needed in Africa. It commences with a belief that many African countries have been mis-ruled and as such needs good governance. It assumes that good governance on a continuing basis requires an effective institutional infrastructure and that functioning legislatures can help in that respect. It also contends that good governance and to a large extent some level of functioning democracy is related. The paper shows that effective legislature helps to sustain democracy where it exists and elsewhere help to democratize by fulfilling the promise inherent in the public’s right to be represented. If given necessary opportunity, representative institutions can connect people to their government by giving them a forum where their needs can be articulated. But to achieve this, cooperation of other institutional bodies are inevitable. Therefore, section I of the paper examines the African concept of human rights and chronicles the problems of Africa which is tagged violation of human rights and bad leadership. Sections II explores the concept of good governance, its genesis and what it entails. The section links human rights to good governance and states why it is needed in Africa. While section III explains the modern concept of legislature, what legislatures do, and how they do it. The section advocates for some mechanisms which will enhance effective performance of legislature. The paper concludes with a strong hope that the legislature can significantly impact on good governance and human rights if given cooperation by media, human rights bodies and other arms of government.

The Role of Spiritual Capital in Innovation and Performance: Evidence from Developing Economies

2017 ◽  
Vol 41 (4) ◽  
pp. 621-640 ◽  
Author(s):  
Mitchell J. Neubert ◽  
Steven W. Bradley ◽  
Retno Ardianti ◽  
Edward M. Simiyu
Keyword(s):  
Developing Economies ◽  
Large Body ◽  
Institutional Voids ◽  
Spiritual Capital ◽  
Social Forms ◽  
Significant Relationships ◽  
Start Up ◽  
Additional Influence ◽  
And Performance

Forms of capital play a significant role in the innovation and performance of start–up firms. Current entrepreneurial research has focused on the role of financial, human, and social forms of capital. We build on a large body of theory and research in sociology and economics, proposing spiritual capital as an additional influence where institutional voids are greater in the development contexts studied. Results from microcredit entrepreneurs in Kenya and Indonesia indicate significant relationships between entrepreneurs’ spiritual capital and business innovation and performance, even after accounting for other forms of capital.

Public–Private Interface for Inclusive Development in Africa

2014 ◽  
pp. 535-552
Author(s):  
Olu Ajakaiye ◽  
Afeikhena Jerome
Keyword(s):  
Economic Theory ◽  
Policy Making ◽  
Developing Economies ◽  
East Asian ◽  
Inclusive Development ◽  
Complex Relationship ◽  
Asian Countries ◽  
African Countries ◽  
Policy Making Process ◽  
Broad Consensus

While the recent global economic crisis has reignited the debate on state versus markets, there is broad consensus on the role public–private interface has played in the remarkable achievements of East Asian countries during the last 40 years. This chapter explores public–private interface in Africa. It notes that economic theory is yet to provide useful guides for understanding this complex relationship and the few disparate attempts in some African countries have not yielded remarkable achievements. On the basis of an evaluation of three archetype developing economies, the chapter outlines the conditions for effective public–private interface to include state capacity; insulation of technocratic policy making process depicted by a Weberian bureaucracy; and, embeddedness of the state vis-à-vis the non-state actors and agents. The chapter recommends a cooperative, complementary and collaborative public–private interface to take Africa to the next level of achieving convergence.

Russian aircrews in Africa (eyewitness narrative accounts)

2021 ◽  
pp. 69
Author(s):  
Natalya S. Ulanova
Keyword(s):  
Lessons Learned ◽  
Highly Qualified ◽  
Flight Crew ◽  
African Countries ◽  
Contract Work ◽  
Cultural Conditions ◽  
Doing Business ◽  
Civil Aircraft ◽  
Local Residents ◽  
Market Relations

The last decade of the 20th century saw another boom in the supply of Soviet-made civil aircraft to the countries of Africa. Hundreds of highly qualified aviation specialists from all post-Soviet states were involved in its operation and maintenance. Market relations, new for many of them, the aggressive way of doing business on the part of entrepreneurs, as well as the complicated military and political situation in some regions, have led to the formation of a certain type of business and personal relationships. Lessons learned over the thirty years of work in special economic and socio-cultural conditions are still actual. Nevertheless, this aspect of Russia-Africa relations remains one of the least studied. Analysis of the narratives of the eyewitnesses - pilots, flight engineers, translators - is still the only way to know more about some hallmarks of the African aviation market, which still has a significant shadow segment. For this study the narratives of a Russian flight engineer who has worked as a flight crew member in various African countries for more than ten years were collected. The recollections presented relate to the first organized trip to South Africa and Mozambique in 1992, and to the later period of private contract work in Angola and Rwanda, and are interesting because they trace the formation of psychological and ethnocultural aspects of business and personal contacts with the employers, local residents and co-workers.

Doing Business in Africa and African Business Opportunities

2014 ◽  
pp. 119-166
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
African Countries ◽  
Performance Levels ◽  
Doing Business ◽  
Business Opportunities ◽  
And Performance

This is a key chapter in this book. It is central to the book’s message and explains fully the concept “doing business in Africa.” The chapter further classifies African business opportunities into enabling and specific opportunities. Specific opportunities are precise areas of Foreign Direct investments. The enabling opportunities are resources and institutions that make investing and doing business in Africa possible and easier. These resources and institutions include USA, European, Chinese, Brazilian, and Indian strategies to promote investment and “doing business in Africa.” These strategies further include linkages and several USA, European, Indian, Brazilian, and Chinese institutions focusing on promoting African trade and business. Moreover, the various perspectives of Foreign Direct Investment in Africa are elucidated and African countries are classified according to their economic development and performance levels.

Users Behavioral Intention Towards eGovernment in an African Developing Country

2018 ◽  
pp. 3654-3666
Author(s):  
Ayankunle A. Taiwo
Keyword(s):  
Technological Innovation ◽  
Developing Economies ◽  
Trust Model ◽  
Intention To Use ◽  
African Countries ◽  
Use Of Technology ◽  
Facilitating Conditions ◽  
Practical Implications ◽  
Study Performance ◽  
The Web

Ever since international emergence of the Internet, huge amounts of money have been invested on e-Government globally. Nevertheless, many African countries have recorded unsuccessful eGovernment initiatives. Optimal results are not exclusively dependent on technological innovation but combination of technologies and active participation of citizens. There is plethora of qualitative discussions on eGovernment with inadequate substantial quantitative study on the influence of trust on the adoption of eGovernment services in African developing economies. The unified theory of acceptance and use of technology (UTAUT) and the Web Trust model was integrated to investigate citizens' intention to use eGovernment services. Data relating to the constructs were collected from 310 respondents that participated in this study. Performance Expectancy, Effort Expectation, Facilitating Conditions and Trusting belief emerged as significant determinants of intention to use eGovernment services. Lastly, practical implications of the results are reported with discussion for further studies.

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