Showing papers by "John M. Luiz published in 2019"

Business environment reforms in fragile and conflict-affected states: From a transactions towards a systems approach

Abstract: Our objective is to advance the understanding of the nexus between business environment reform (BER) and conflict, fragility, and underdevelopment. We examine the evidence and the lessons of BER in fragile and conflict-affected states (FCAS), based on the experience of four African countries (Rwanda, Sierra Leone, Uganda, and Ethiopia) that have or are transitioning from a fragile environment to greater stability and more sustained economic growth. We use a qualitative case study approach that draws on several data sources to inform its analysis, including one-on-one interviews, roundtable focus groups, and an analysis of documents, reports, and data. A total of 83 respondents participated in our research. We develop a systems approach rather than a transactional approach to recognize the complex network of interconnected and interacting business interests, agendas, and systems in FCAS. We argue that BER has the greatest potential to advance achievement of sustainable development when it is attentive to three objectives at the same time: stimulating broad-based economic growth, expanding economic opportunity in formal and informal markets, and addressing drivers of conflict and fragility. The implications for international businesses entering or operating in FCAS are substantial and may require atypical capabilities.

Embracing Solutions-Driven Innovation to Address Institutional Voids: The Case of Uber and the Middle of the Pyramid:

Abstract: This article explores solutions-driven innovation within an emerging market context, specifically in Africa, and how it can be utilized as a strategy by multinational enterprises to address institu...

Negotiating new institutional logics: market access amongst smallholder farmers in Zambia and Malawi

Abstract: Purpose – This paper aims to analyse how processes of institutional change in environments of institutional ’voids’ affect smallholder farmer market access in Zambia and Malawi, and explores the role of different dis/enabling institutional agents and logics. The authors examine this in the context of two divergent routes of institutional change – one externally imposed and the second driven from within the ecosystem itself. The authors consider how these different institutional processes impact upon smallholder farmers and how they are able to adapt to these changes. Design/methodology/approach – A qualitative research approach is used which lends itself to an analysis of multiple institutional logics that is based upon the multiple positions of market actors. It uses a comparative case study design methodology focused on two broad cases of smallholder farmers in Zambia and Malawi. Findings – The research demonstrates the tension that multiple institutional logics can create especially amongst those most vulnerable particularly where these are not embedded in local realities and mindful of social settings. Originality/value – It contributes to the understanding of poverty alleviation in rural developing regions, on overcoming institutional voids, market inclusivity and the role of social entrepreneurs and intermediaries, and builds on the perspective of markets as social spaces for economic exchange.

Exploiting emerging market complementarities: delayed, then accelerated internationalisation in a technology EMNE

Abstract: This paper aims to explore the delayed, then accelerated, internationalisation of an emerging multinational enterprise (EMNE), with a particular focus on the media technology sector, and how it exploited complementarities between emerging markets.,The research is qualitative in nature and focuses on the expansion of a South African media technology EMNE case study that has a footprint in over 130 countries and has one of the largest market capitalisations of any media company outside the USA and China.,EMNEs have unique capabilities in navigating uncertain institutional environments in emerging markets and are able to capitalise upon the institutional complementarities between their home and host countries. This may facilitate the recognition of market opportunities and the harnessing of new technologies to meet these opportunities in complementary markets for accelerated internationalisation.,EMNEs must capitalise upon the institutional complementarities between home and host country locations and use this to take advantage of identified market opportunities. This creates the possibility for a process of accelerated internationalisation. New technologies are creating particular market opportunities in emerging markets which can be exploited by EMNEs.,The authors provide a framework which illustrates how an EMNE can exploit complementarities between emerging markets to identify market opportunities, capitalise upon institutional similarities and harness new technologies in the process.

Institutional drivers, historical determinism, and economic development in Mozambique

Abstract: The purpose of this paper is to examine the evolution of political and economic institutions, their persistence and interdependence and their effects on economic progress in Mozambique.,Using a unique data set, which has developed detailed long-run indices of institutional change in Mozambique from 1900 onwards, the research utilizes time-series econometrics to estimate cointegration relations and Vector Autoregressive and Vector Error Correction models, and also Granger causality, correlation and residual analysis when interpreting the estimation results.,It shows support for path dependence in political and economic institutions as well as the critical juncture theory and modernization hypothesis, and for webs of association between these institutions and economic development. It provides evidence of an equilibrium-dependent process, where history does matter (as do early conditions), and whose impact may differ depending on the nature of institutional arrangements. Various institutions created during colonial times have a bearing on the present state of institutions in Mozambique, as reflected in important continuities regarding the forms of political economy, among others.,The work contributes to existing research not only through the employment of a new set of institutional measures, which allows for a particularly long time-series investigation in a developing country setting, but also through its contribution to studies on modernization and critical junctures but in a longitudinal manner which allows for the exploration of complex dynamics embedded within a country’s particular political economy. The implications are far-reaching and carry importance beyond the academy given the pressure on policymakers to get things right because of the persistence of institutions and their consequences and the associated path dependency.

Is the business environment a matter of political economy and convergence

Abstract: In this article, the central question addressed is: does the business environment entail a complex nexus of political economy and other factors (government, business, ideology, and leadership) that may or may not manifest convergence? Also, the role of metrics and data is appropriately discussed. Current theories fail to impart an understanding of what the nature of the business environment is, or of the multifaceted nexus and convergence (or divergence) that it may entail. The strength of convergence involved is directly related to the integrity of the business environment and also reflects the overall dynamics in the country of focus. Each of the three country cases examined is fundamentally different, but offers important lessons. The overarching conclusion is that political economy and convergence often play a critical role in the business environment—though certainly not always, as in South Africa, where there is divergence, and in the case of metrics and data on the business environment, which, by design, do not focus on convergence.

Economics, Transitions, and Traps in Emerging Markets

Abstract: While future drivers of economic growth will be from emerging markets, the complexities associated with transitioning from low- to high-income country status. This chapter examines the economic prospects of emerging markets and the challenges they may face. In particular, the chapter investigates the notion of middle-income traps as a possible structural impediment to the realization of consistently high growth and the implications for business when operating within these traps. These countries may find themselves struggling to compete with the low wages of low-income countries and the technological aptitude of advanced countries. The result is the increasing deindustrialization of these countries and a growth slowdown as these countries fail to transition to higher-value activities. This struggle may be accentuated by structural changes in the economy and the process of modernization may produce political disorder, policy paralysis, and instability. This has implications for business that needs to be mindful of the pitfalls associated with countries in transition and different strategies may be required to operate in these settings where companies may have difficulty in moving up value chains and new consumer markets may be vulnerable to structural volatility.

Inequality: concepts, data, perspectives and solutions

Abstract: A comprehensive treatise on inequality from economic, social, business and metrics/data perspectives is lacking in the literature and this treatise fills that void. We posit that: (a) neoclassical economics has failed to address inequality within nations; (b) the social theories on inequality are of ancillary importance; (c) businesses have contributed to inequality in several ways but have also made a positive contribution towards a fairer, more equitable society; (d) data on inequality is not up to date. Taxation and social programs offer an inadequate approach to tackling inequality without a proper framework and supporting approaches. In addition, complementarity between neoclassical economics and behavioural economics would be a positive factor in addressing inequality and should be pursued. Issues of inequality metrics and data reliability have moved to the forefront of discussions as the data currently available is the basis of much dissent. Robust metrics and reliable and up to date inequality data (as well as related statistics) are indispensable for designing, implementing, monitoring, and evaluating inequality interventions and policies.