Presentation Type
Oral Presentation
Keywords
Keywords: Political stability, Corruption, CEO Demographics, Africa, Performance
Department
Business Administration
Major
International Business
Abstract
Many African businesses lag in financial performance compared to the performance of companies in the West. Despite this, the continent’s economic output has continued to rise considerably in the past two decades, but many of these economic achievements have been discredited. Despite the West’s view of Africa as a continent unprepared for economic growth due to simmering conflict, threats of terror, and other barriers to business, African business has continued to boom. Over the past two decades, Africa has made massive strides to “catch up to the West.” In fact, according to experts, many countries in Africa have experienced what is defined as ‘leapfrogging,’ skipping entirely over certain stages of development and advancing much quicker than the West did in previous decades. Despite the enormous economic potential, constant exploitation by outside parties, mainly predatory relationships with foreign partners, have impacted Africa’s economic growth potential. African businesses/countries have often engaged in predatory relationships with foreign companies and investors in the name of economic development. Colonial legacies, lack of education, corruption, and political instability play critical roles in this relationship. This paper will explore how specific business arrangements, foreign aid dependency, and political instability result in exploitative relationships with foreign partners, specifically, through the lens of institutional theory. We used a mixed methodology approach and performed regression analysis to test our hypotheses by combining quantitative data collected from various databases. In addition, we have conducted interviews to collect qualitative data to fill in the gaps of understanding about African companies.
Faculty Mentor
Howard Jean-Denis
Funding Source or Research Program
Academic Year Undergraduate Research Initiative
Presentation Session
Session C
Location
Black Family Plaza Classroom 190
Start Date
25-3-2022 3:45 PM
End Date
25-3-2022 4:00 PM
Included in
Business Administration, Management, and Operations Commons, Finance and Financial Management Commons, International Business Commons, Organizational Behavior and Theory Commons
The Role of Politics and Corruption in the Rise of the African Firm
Black Family Plaza Classroom 190
Many African businesses lag in financial performance compared to the performance of companies in the West. Despite this, the continent’s economic output has continued to rise considerably in the past two decades, but many of these economic achievements have been discredited. Despite the West’s view of Africa as a continent unprepared for economic growth due to simmering conflict, threats of terror, and other barriers to business, African business has continued to boom. Over the past two decades, Africa has made massive strides to “catch up to the West.” In fact, according to experts, many countries in Africa have experienced what is defined as ‘leapfrogging,’ skipping entirely over certain stages of development and advancing much quicker than the West did in previous decades. Despite the enormous economic potential, constant exploitation by outside parties, mainly predatory relationships with foreign partners, have impacted Africa’s economic growth potential. African businesses/countries have often engaged in predatory relationships with foreign companies and investors in the name of economic development. Colonial legacies, lack of education, corruption, and political instability play critical roles in this relationship. This paper will explore how specific business arrangements, foreign aid dependency, and political instability result in exploitative relationships with foreign partners, specifically, through the lens of institutional theory. We used a mixed methodology approach and performed regression analysis to test our hypotheses by combining quantitative data collected from various databases. In addition, we have conducted interviews to collect qualitative data to fill in the gaps of understanding about African companies.