Journal ArticleDOI
Corruption, South African Multinational Enterprises and Institutions in Africa
John M. Luiz,Callum Stewart +1 more
TLDR
This article examined the responses of South African multinational enterprises (MNEs) to corruption in African markets in the context of institutional voids and found that corruption is a source of uncertainty and additional transactional costs for MNEs and it necessitates a strategic response.Abstract:
We examine the responses of South African multinational enterprises (MNEs) to corruption in African markets in the context of institutional voids. Corruption is a source of uncertainty and additional transactional costs for MNEs and it necessitates a strategic response. The research employs a qualitative study of a sample of MNEs with experience in internationalising into Africa. The results indicate that corruption in African markets is pervasive and closely associated with the institutional voids in these countries. MNEs see themselves as ‘institution takers’ responding to countries’ institutional makeup at the organisational and individual level but fail to fully appreciate their impact on institutions both positively and negatively. Rather MNEs focus on strategic responses at the organisational level to address corruption operationally in the host country. We add to the existing literature by providing a dynamic framework of the complex webs of association between institutions, MNEs and corruption in conditions of economic underdevelopment. The research suggests that MNEs do not need to get caught in a vicious cycle whereby they perpetuate corruption in conditions of underdevelopment and institutional voids but instead can contribute towards a virtuous cycle through which they institutionalise ethical foundations.read more
Citations
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Journal ArticleDOI
Bringing Africa In: Promising Directions for Management Research
TL;DR: For example, the authors in this article propose that the greatest challenge to business in Africa stems from the persistence of institutional voids, understood as the absence of market-supporting institutions, specialized intermediaries, contractenforcing mechanisms, and efficient transportation and communication networks.
Journal ArticleDOI
The State of Research on Africa in Business and Management Insights From a Systematic Review of Key International Journals
Ans Kolk,Miguel Rivera-Santos +1 more
TL;DR: An in-depth analysis of the 139 Africa-focused articles shows an important imbalance in terms of publication patterns, topics covered, theoretical groundings, types of contributions, approaches to the African contexts, and empirics.
Journal ArticleDOI
Institutional Complementarity and Substitution as an Internationalization Strategy: The Emergence of an African Multinational Giant
TL;DR: In this paper, the authors examine the internationalization decisions made by one of Africa's most successful companies, South African Breweries, as it underwent a period of aggressive expansion, and demonstrate that firms can exploit their knowledge of weak institutional settings and turn it into a source of advantage as they internationalize into locations with similar institutional weaknesses.
Journal ArticleDOI
Africa Business Research as a Laboratory for Theory-Building: Extreme Conditions, New Phenomena, and Alternative Paradigms of Social Relationships
TL;DR: In this article, the challenges and opportunities that firms in Africa face and propose that these can serve as the basis for extending current theories and models of the firm, as illustrated in the case of institutional theory and the resource-based view.
Journal ArticleDOI
The impact of managerial political ties on corporate governance and debt financing: Evidence from Ghana
TL;DR: In this article, the authors draw upon insights from agency theory to examine the impact of managerial political ties on cost of debt and also explore whether corporate governance mediates this impact, and they find support for their direct and moderation hypotheses; political ties are associated with high interest rates and poor corporate governance.
References
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Book
Business Research Methods
Alan Bryman,Emma Bell +1 more
TL;DR: In this paper, the authors present a review of the literature in business research and discuss the nature of qualitative and quantitative research, and break down the quantitative/qualitative divide by combining quantitative and qualitative research.
Journal ArticleDOI
An institution-based view of international business strategy: a focus on emerging economies
TL;DR: In this article, the authors argue that an institution-based view of international business strategy has emerged and is positioned as one leg that helps sustain the "strategy tripod" (the other two legs consisting of the industry- and resource-based views).
Journal ArticleDOI
Eight Questions about Corruption
TL;DR: The authors discuss eight frequently asked questions about public corruption: What is corruption, which countries are the most corrupt, what are the common characteristics of countries with high corruption, what is the magnitude of corruption, do higher wages for bureaucrats reduce corruption, can competition reduce corruption and why have there been so few successful attempts to fight corruption?
Posted Content
Institutions as the Fundamental Cause of Long-Run Growth
Daron Acemoglu,Daron Acemoglu,Daron Acemoglu,Simon Johnson,Simon Johnson,James A. Robinson,James A. Robinson,James A. Robinson +7 more
TL;DR: In this article, the authors develop the empirical and theoretical case that differences in economic institutions are the fundamental cause of economic development and develop a framework for thinking about why economic institutions differ across countries.
Journal ArticleDOI
An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment
TL;DR: In this article, the authors examine the co-evolution of MNE activities and institutions external and internal to the firm, and highlight the scope for firm-level creativity and institutional entrepreneurship that may lead to coevolution with the environment.