Bringing Africa In: Promising Directions for Management Research

By Gerard George, C. Corbishley, Jane N. O. Khayesi, Martine R. Haas, Laszlo Tihanyi. 2016

431 citations recorded by the source corpus.

Africa is beginning to capture the imagination of entrepreneurs, corporate executives, and scholars as an emerging market of new growth opportunities. Over 15 years, the continent has experienced an average growth rate of 5% (World Economic Forum, 2015: v). Out of its 54 countries, 26 have achieved middle-income status, while the proportion of those living in extreme poverty has fallen from 51% in 2005 to 42% in 2014 (African Development Bank, 2014a: 49). Although there are regional differences, the primary drivers of growth have been rapidly emerging consumer markets, regional economic integration, investment in infrastructure, technological leap-frogging, and the opening up of newmarkets, especially in the service sector.Africaneconomies also face commensurate challenges. Across the continent, economies remain largely agrarian, underpinned by resource-driven growth and still dominated by the informal sector. But what is it about the context that makes Africa such fertile territory for management scholarship? The greatest challenge to business in Africa stems from the persistence of institutional voids, understood as the absence of market-supporting institutions, specialized intermediaries, contract-enforcing mechanisms, and efficient transportation and communication networks (Khanna & Palepu, 2013). In order to be successful, the private sector that generates 90% of employment, two-thirds of investment, and 70% of economic output on the continent needs to cope with the challenges presented by undeveloped market institutions and missing infrastructure (African Development Bank, 2013: 34). Nevertheless, several new trends in recent years have been changing the ways business is done in Africa. The rapid expansion of information and communication networks—specifically, mobile technology—has provided tremendous new opportunities. By 2025, half of the people on the continent will have Internet access, connecting them to services in health care, education, finance, retail, and government (McKinsey Global Institute, 2010). Instead of playing catch-up, entrepreneurs in Africa are “hacking” existing infrastructure gaps through technology, connecting Africans to new goods and services (e.g., mobile applications for activities ranging from private security in Ghana and monitoring patients in Zimbabwe to cattle herding in Kenya and connecting dirty laundry to itinerant washerwomen in Uganda). Inventive approaches to delivering new sources of value creation go hand in hand with Africa’s surprising demographics, where over half of the continent’s 1.1 billion population are currently under the age of 25. This unprecedented population growth will lead to a projected increase in the workforce of nearly 450million between 2010 and 2035. The diversity of the African context is captured in Table 1, which outlines some of the human, economic, and institutional development indicators in a select set of countries. Africa is the world’s second largest continent, covering over 30 million square kilometers, or the size of China, India, the United States, and most of Europe combined (“The true true size,” 2010). In many ways, the global economy is now looking to Africa for the resources to sustain its development. The continent contains 30% of the world’s minerals as well as the largest reserves of precious metals, with more than 40% of global reserves of gold, 60% of cobalt, and90%ofplatinum(KPMG,2013).Asone of the world’s driest continents, 90% of its soils are unsuitable for agriculture and only 0.25% have low to moderate potential for sustainable farming. Water scarcity impacts the lives of more than 300 million Africans, of whom approximately 75% rely on groundwater as their primary source of drinking water, which represents only 15% of the continent’s renewable water resources. Meanwhile, global warming is aggravating the situation, presentingmultilateral organizations, national governments, and private sector participants with immense challenges for ensuring food and water security. Increasing investments from multinational firms and growing entrepreneurial activity within the informal economy are occurringwithin heterogeneous and volatile sociopolitical contexts characterized by fragile governance. Africa has been gradually transitioning towardmore stable institutional frameworks, with an increasing number of countries undergoing

Subfields: Anthropology, Business and International Management, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/808e6ba162b3b9905ebd03a39d02485dbc6ec6c7

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Business and International Management

  1. Patience Dzigbordi Akosua Korsorku
  2. A. Puni
  3. A. Anlesinya

In Organizational Behavior and Human Resource Management

  1. Patience Dzigbordi Akosua Korsorku
  2. A. Puni
  3. A. Anlesinya

Citations in the corpus