As argued in Chapter 15, regionalization and free trade arrangements have enormous potential for ... more As argued in Chapter 15, regionalization and free trade arrangements have enormous potential for creating employment, facilitating investment and fostering growth in Africa. Regionalization can expand the market space of individual SSA firms and grant them the opportunity to reap the economic benefits of scale. African governments have therefore considered it an important item on the political agenda since the 1950s. The contribution of regionalization to intra-African trade has, however, been rather modest. The United Nations Conference on Trade and Development (UNCTAD) (2013:2) reports that the average share of intra-African exports in total merchandise exports in Africa was barely 11% between 2007 and 2011 (compared with 50% in developing Asian countries, 21% in Latin America and the Caribbean and 70% in Europe).
Two pilot studies of the internationalization of Ghanaian companies revealed that contemporary th... more Two pilot studies of the internationalization of Ghanaian companies revealed that contemporary theories of internationalization have limited relevance to the understanding of the internationalization process of Ghanaian companies. The inadequacy of the theories is evident both in the internationalization process of firms and in the context of the international activities. By defining internationalization as the process of integration of a company into the world economy, the present article identifies two broad routes to internationalization, i.e., the downstream and upstream route respectively. It further breaks them in to six sub-routes and discusses their theoretical rationale, illustrated by examples of Ghanaian companies. 1. A Need to Re-examine Theories of Internationalization in Developing Country Context. Two recent pilot studies of the internationalization of Ghanaian companies revealed a limited relevance of contemporary, mainstream theories of internationalization to explain and guide the internationalization process of Ghanaian companies. (Kuada and Sørensen 1997; Borup and Duus 1996). The problems are related both to the internationalization process itself as well as to the context of the international activities. In broad terms, the existing theories of internationalization have been developed within the context of a mature market economy, notably the European and the North American context. Furthermore, the general assumption in the existing literature is that internationalization is a downstream activity, i.e. companies export from their home base to buyers in other countries. Following the dominant Stages Theory(Johanson and Wiedersheim 197; Bilkey and Tesar 1978; Strandskov1995; Tornbull 1987), the internationalization process of firms proceeds in an orderly and sequential manner based on learning, the accumulation of experience, and a gradual increase in the commitment of resources to internationalization. In other words, based on a good position
As argued in Chapter 15, regionalization and free trade arrangements have enormous potential for ... more As argued in Chapter 15, regionalization and free trade arrangements have enormous potential for creating employment, facilitating investment and fostering growth in Africa. Regionalization can expand the market space of individual SSA firms and grant them the opportunity to reap the economic benefits of scale. African governments have therefore considered it an important item on the political agenda since the 1950s. The contribution of regionalization to intra-African trade has, however, been rather modest. The United Nations Conference on Trade and Development (UNCTAD) (2013:2) reports that the average share of intra-African exports in total merchandise exports in Africa was barely 11% between 2007 and 2011 (compared with 50% in developing Asian countries, 21% in Latin America and the Caribbean and 70% in Europe).
Two pilot studies of the internationalization of Ghanaian companies revealed that contemporary th... more Two pilot studies of the internationalization of Ghanaian companies revealed that contemporary theories of internationalization have limited relevance to the understanding of the internationalization process of Ghanaian companies. The inadequacy of the theories is evident both in the internationalization process of firms and in the context of the international activities. By defining internationalization as the process of integration of a company into the world economy, the present article identifies two broad routes to internationalization, i.e., the downstream and upstream route respectively. It further breaks them in to six sub-routes and discusses their theoretical rationale, illustrated by examples of Ghanaian companies. 1. A Need to Re-examine Theories of Internationalization in Developing Country Context. Two recent pilot studies of the internationalization of Ghanaian companies revealed a limited relevance of contemporary, mainstream theories of internationalization to explain and guide the internationalization process of Ghanaian companies. (Kuada and Sørensen 1997; Borup and Duus 1996). The problems are related both to the internationalization process itself as well as to the context of the international activities. In broad terms, the existing theories of internationalization have been developed within the context of a mature market economy, notably the European and the North American context. Furthermore, the general assumption in the existing literature is that internationalization is a downstream activity, i.e. companies export from their home base to buyers in other countries. Following the dominant Stages Theory(Johanson and Wiedersheim 197; Bilkey and Tesar 1978; Strandskov1995; Tornbull 1987), the internationalization process of firms proceeds in an orderly and sequential manner based on learning, the accumulation of experience, and a gradual increase in the commitment of resources to internationalization. In other words, based on a good position
Article Africa's trials and tribulations on the road to sustainable development have been many. M... more Article Africa's trials and tribulations on the road to sustainable development have been many. Miracles have turned to mirages. The main challenge has been, and still remains, maintaining momentum of economic growth and creating the structures and processes that can ensure progress. George Coulter's book Africa in Transition – The Journey from Traditional to Modern provides interesting perspectives on this challenge. It is well written and has a clear storyline. He narrates the story of his own journey through Africa over five decades in a highly refreshing language carrying the reader's mind along to experience the places that provided him with his knowledge. His narratives are laced with vivid descriptions of the personal challenges and adventures of a reflective traveller on non‐existing roads through captivating natural sceneries. He invites the reader to travel with him and experience the buoyant welcoming morning in Cape Town, a city with " the spectacular mountain background draped in white cloud, crystal light, warmth and gracious buildings " (p. 68). He describes Lake Tanganyika in the 1950s as an " epitome of natural beauty in a sunny clime " (p. 111). It is also a story of a concerned expatriate, meeting with fascinating persons, each with remarkable individual traits and listening to gossip and witnessing challenges that other European expatriates in Africa faced about half a century ago. The book has 17 chapters, organized into three parts with a common structure guiding the contents of each chapter. The first six chapters constitute part one. In each chapter the author describes specific projects in which he was involved. These projects took him to the Gold Coast (later Ghana) in 1955 and to North Rhodesia (later Zambia) in 1959. Each project was concerned with research and development within the fishery sectors of the different communities. As we travel with him on his assignments among the local communities in Ghana to introduce them to improved fishing methods which he describes as " simple stuff, but possibly a big step if the fishermen adopted it in practice " (p. 42), we also join him in his reflections about how these technology transfer initiatives should have been done to achieve the desired impact. For example, he observes that " the fishing communities must not only be introduced to new technologies and be trained to use them; they must also be introduced to credit schemes to buy them " (p. 42). He informed that the planners of these projects reasoned that the fishermen would switch smoothly to motorized vessels and new gear. They would then be able to make bigger catches and benefit from extensive marketing systems. He then reflects on the wisdom of the approach adopted in the following words: " We are thinking like Europeans, of course […] our minds ran simply along the lines of increasing fish landings by improving efficiency and introducing mechanical methods " (p. 42). His conclusion was that " if the experience of 50 years is anything to go by, money and technology from abroad are not by themselves solutions leading to a better life for the fisherfolk " (p. 62). Part 2 of the book also comprises six chapters and in them the author provides us with his reflections on Central and East Africa's colonial past based on dialogues he had with people close to aspects of administrative life and politics in the region. He discusses slavery, Christian evangelism and politics and their implications for the development and life of the local people. He reminds us of the wars in East Africa, the history of slave trade, anti‐slavery and attempts to " modernize " Africa through evangelization. This part of the story draws on the rich memory bank of the author and the many Africans that he spoke with through nearly half a century's interaction. The chapters also portray the paradoxes in life where people with irreconcilable values can carve out and sustain friendships over decades (e.g. the friendship between the sultan and Kirk – p. 204). The accounts also remind us of how capricious individuals can bring personal sufferings to societies. His links to major historical events remind us that Africa has been (and still is) part of a global world order and served as a canvas for non‐African stakeholders. Part 3 has five chapters in which the author pulls together his reflections and viewpoints on Africa's developmental experiments and results. He reflects on the complex and uneven process of change in Africa – a change from traditional and subsistence forms of living to different shades of modernity characterized by soaring populations, urbanization and economic stagnation. In his view, the Western‐sponsored developmental model that has been fashioned to guide policies and projects during the last six decades or so does not adequately reflect the dominant cultural mindsets of the Africans: A principal question is whether transformation is to be into the competitive individualistic materialism of the market world, or to a way of life that permits retaining the human‐centered character of traditional Africa with its concern for harmony within community (p. xv).
Despite the good intentions in sub-Sahara Africa (SSA), previous policy initiatives on entreprene... more Despite the good intentions in sub-Sahara Africa (SSA), previous policy initiatives on entrepreneurship have been disjointed, unambitious, and implemented without commitment and required resources. Furthermore, there has been limited research that can provide insight into the reasons why some of the policy initiatives appear to be successful while others fail. Some scholars have suggested that without a context-specific classificatory guide, policymakers are unlikely to be accurate in their assessment of the growth capabilities of prospective candidates for specific promotion initiatives and this can explain some of the policy failures. This observation has motivated the present paper. Our aim is to provide a framework that helps identify the different contextual dimensions influencing enterprise creation processes in SSA.
Despite the good intentions in sub-Sahara Africa (SSA), previous policy initiatives on entreprene... more Despite the good intentions in sub-Sahara Africa (SSA), previous policy initiatives on entrepreneurship have been disjointed, unambitious, and implemented without commitment and required resources. Furthermore, there has been limited research that can provide insight into the reasons why some of the policy initiatives appear to be successful while others fail. Some scholars have suggested that without a context-specific classificatory guide, policymakers are unlikely to be accurate in their assessment of the growth capabilities of prospective candidates for specific promotion initiatives and this can explain some of the policy failures. This observation has motivated the present paper. Our aim is to provide a framework that helps identify the different contextual dimensions influencing enterprise creation processes in SSA.
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