Suchergebnisse

If African developing countries are to benefit fully from the current boom in foreign direct investment (FDI) in extractives (i.e. mining and oil/gas), it is essential that the foreign investors foster linkages to the local economy. Traditionally, extractive FDI in Africa has been seen as the enclave economy par excellence, moving in with fully integrated value chains, extracting resources and exporting them as commodities having virtually no linkages to the local economy. However, new opportunities for promoting linkages are offered by changing business strategies of local African enterprises as well as foreign multinational corporations (MNCs). MNCs in extractives are increasingly seeking local linkages as part of their efficiency, risk, and asset-seeking strategies, and linkage programmes are becoming integral elements in many MNCs' corporate social responsibility (CSR) activities. At the same time, local African enterprises are eager to, and increasingly capable of, linking up to the foreign investors in order to expand their activities and acquire technology, skills and market access. The changing strategies of MNCs and the improving capabilities of African enterprises offer new opportunities for governments and donors to mobilize extractive FDI for development goals. This paper seeks to take stock of what we know about the state of and driving forces of linkage formation in South Sahel Africa extractives based on a review of the extant literature. The paper argues that while MNCs and local enterprises by themselves will indeed produce linkages, the scope, depth and development impacts of linkages eventually depend on government intervention. Resource-rich African countries' governments are aware of this and linkage promotion is increasingly becoming a key element in their industrialization strategies. A main point of the paper is that the choice between different linkage policies and approaches should be informed by a firm understanding of the workings of the private sector as well as the political and institutional capacity of host governments to adopt and implement linkage policies and approaches.

After a decade of steadily growing foreign direct investment (FDI) in extractives, Tanzania is now facing a virtual 'take off'' in extractive FDI. One of the concerns related to these investments is whether the foreign investors are linking up sufficiently with local firms through localized supply chains and service inputs. In theory, the opportunities for linkage formation in Tanzania are due to the growing propensity of extractive multinational corporations (MNCs) to outsource sections of their value chain. However, our review demonstrates that linkages in Tanzanian extractives are few and that those that do exists are typically shallow and confined to simple, low value added tasks. The reason for the lack of linkages is mainly that the technology gap between MNCs and local firms is too big to bridge and that a toxic Tanzanian business environment makes contractual partnerships between local firms and MNCs difficult. The lack of linkages amplifies already widespread concerns that extractive FDI leaves too few development benefits for Tanzanian society. As a consequence, pressure is mounting on the government to force MNCs into localizing their value chains though mandatory local content and ownership requirements. The paper assesses the diverging interests and pressures for linkage formation in Tanzanian extractives and discusses whether or not the Tanzanian government will be able to exploit the opportunity offered by the surge in extractive FDI to spur economic development and industrial transformation. The conclusion is that there is a risk that Tanzania will forego this development opportunity due to lack of focused industrial vision and policy.

In order for foreign direct investment to have deep and lasting positive effects on host countries, it is essential that multinational corporations have close direct and indirect interaction with local firms. A valuable addition to the emerging literature on multinational-local firm interfaces, this book provides a number of case studies from emerging economies that examine such mutually beneficial business relationships and the policy measures necessary to support them.

Globally, policymakers and scientists are increasingly recognizing that close direct and indirect interaction between multinationals and local businesses is essential if foreign investment is to have a profound, lasting positive effect on the host country. Nevertheless, the interaction between multinationals (MNCs) and local companies has received relatively little attention in the scientific literature. This book aims to contribute to this with a number of studies in development economies into the spillover and linkage effects of MNCs on local companies. In addition, it describes policy experiences of various countries in their attempt to promote closer interactions between MNCs and local businesses. This book focuses in particular on researchers in economics, business administration, international relations, political science, development and area studies. Policy makers in the development field can also draw inspiration from it. - Wereldwijd erkennen beleidsmakers én wetenschappers in toenemende mate dat hechte directe en indirecte interactie tussen multinationals en lokale bedrijven essentieel is, willen buitenlandse investeringen een diepgaand, blijvend positief effect hebben op het gastland. Toch heeft de interactie tussen multinationals (MNCs) en lokale bedrijven nog relatief weinig aandacht gekregen in de wetenschappelijke literatuur. Dit boek beoogt hieraan bij te dragen met een aantal studies in ontwikkelingseconomieën naar de spillover- en linkage-effecten van MNCs op lokale bedrijven. Bovendien beschrijft het beleidservaringen van diverse landen in hun poging hechtere interacties tussen MNCs en lokale ondernemingen te bevorderen. Dit boek richt zich met name op onderzoekers in de economie, bedrijfskunde, internationale betrekkingen, politicologie, ontwikkelings- en gebiedsstudies. Ook beleidsmakers in het ontwikkelingsveld kunnen er inspiratie uit halen.

Purpose– The purpose of this paper is to examine the evolution in subsidiary performance and the factors influencing this performance based on a unique database of approximately 800 multi-national company (MNC) subsidiaries in developing countries. Developed-country multi-national companies (MNCs) are increasingly establishing subsidiaries in developing countries. The potential gains are high; however, so are the risks. While the issue of subsidiary performance should be at the heart of any international business (IB) enquiry into MNC activity in developing countries, surprisingly little research has examined this issue.Design/methodology/approach– Based on a comprehensive literature review of the IB performance literature, it is hypothesized that subsidiary performance essentially is shaped by five clusters of factors: location, industry, MNC capabilities, subsidiary role and entry strategy. These factors' ability to explain variance in subsidiary performance is tested through a multiple regression analysis.Findings– MNC subsidiary performance in developing countries has improved enormously in recent decades. Especially, MNC capability and subsidiary role-related factors appear to explain variance in performance, while location factors appear to have less explanatory power. This suggests that strong MNC capabilities and organization can make MNCs succeed regardless of location.Practical implications– The key preparatory work for MNCs contemplating entry into developing countries is to carefully scrutinize internal capabilities and organization.Originality/value– The paper presents a model for explaining variation in subsidiary performance in developing countries specifically. The paper offers unique empirical insights into the state and drivers of subsidiary performance in developing countries.

"Business and Development Studies: Issues and Perspectives provides a comprehensive collection of cutting edge theoretical and empirical contributions to the emerging field of business and development studies. Compared to more traditional business school accounts of business in developing countries which focus on the challenges and opportunities of doing business in developing countries, this anthology explores whether, how and under what conditions business contributes to the achievement of economic, social, and environmental goals in developing countries. The book consolidates the current status of academic work on business and development, identifies state of the art in relation to this academic field, and establishes a future research agenda for 'business and development studies' as an emerging academic discipline within the social sciences. The book will be of interest to researchers and students including economists, geographers, sociologists, political scientists, corporate social responsibility specialists, and development scholars who are seeking an in-depth overview of current debates about the role of business as a development agent in the Global South. The book is also of relevance to practitioners that are engaged in work with the private sector, seeking to enhance the positive effects and minimize the negative economic, social, and environmental consequences of business activity in the Global South."

Purpose
The purpose of this paper is to examine how female entrepreneurs navigate complex and challenging institutional environments. It draws on institutional theory and the concept of response strategies to institutional pressures to explore the institutional barriers that female entrepreneurs encounter and highlights the strategies women employ to overcome them.


Design/methodology/approach
This paper builds on a case study of female entrepreneurs engaged in food processing in Tanzania. It draws on semi-structured interviews with nine female entrepreneurs, one focus group discussion with six female entrepreneurs and two semi-structured interviews with representatives from women's business associations (WBAs).


Findings
This paper reveals a repertoire of active strategies enacted by women entrepreneurs, including advocacy through WBAs, bootstrapping, semi-informal operations, co-location of home and business, spouse involvement in the business, downplay of gender identity, reliance on persistence and passion and networking through WBAs. While these strategies involve various degrees of agency, the findings indicate that collective efforts through WBAs offer women the most promise in terms of influencing institutional structures.


Originality/value
While there is a growing body of literature examining how institutions influence female entrepreneurs, there is a dearth of knowledge on how women experience institutional complexities and actively react to institutional barriers, complexities and contradictions. This paper shows the value of analytical attention to female entrepreneurs' agency by highlighting women's active responses and documenting a repertoire of strategies.