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

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Mar 25th, 3:45 PM Mar 25th, 4:00 PM

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.

 

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