Private Enterprise-Led Economic Development in Sub-Saharan Africa This page intentionally left blank Private Enterprise-Led Economic Development in Sub-Saharan Africa The Human Side of Growth John Kuada Aalborg University, Denmark © John Kuada 2015 Softcover reprint of the hardcover 1st edition 2015 978-1-137-53443-9 All rights reserved No reproduction, copy or transmission of this publication may be made without written permission No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988 First published 2015 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010 Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries ISBN 978-1-349-56987-8 ISBN 978-1-137-53445-3 (eBook) DOI 10.1057/9781137534453 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Kuada, John Private enterprise-led economic development in Sub-Saharan Africa : the human side of growth / John Kuada pages cm Free enterprise—Africa, Sub-Saharan Economic development—Africa, Sub-Saharan Africa, Sub-Saharan—Economic conditions I Title HB95.K83 2015 338.967—dc23 2015021450 Contents List of Figures and Tables vii Acknowledgements viii Part I The Context and Trends of Economic Development in Sub-Saharan Africa Introduction Political and Social Context of Economic Development in Sub-Saharan Africa 19 Explaining Africa’s Recent Economic Growth Experiences 33 Contemporary Perspectives on Economic Growth and Development 40 The Human Factor in Economic Development 51 Part II Culture, Civil Society and Economic Growth Culture and Its Relevance to Economic Development Discourses 77 Subcultures, Networks and Trust 92 Theories of Organizational Cultures 100 African Culture and Economic Development 112 Part III Leadership, Governance and Management 10 Leadership and the Management of Human Capability Development Processes 129 11 Cultural Influences on Leadership and Human Resource Management in Africa 142 v vi Contents Part IV Entrepreneurial Orientation, Innovation and Economic Growth 12 Theories and Perspectives on Entrepreneurship 153 13 Learning, Innovation and Entrepreneurship 164 14 Entrepreneurial Activities in Africa: Opportunities and Challenges 174 Part V Global Orientation and Integration 15 Internationalization Theories and Africa’s Economic Growth Prospects 189 16 Regionalization and Economic Integration 206 17 Reflections, Conclusions and the Way Forward 215 Notes 224 Bibliography 228 Index 268 Figures and Tables Figures 5.1 Determinants of human capabilities development 14.1 Typology of African entrepreneurs 59 178 Tables 10.1 A summary of contemporary leadership theories vii 130 Acknowledgements This book would not have been possible without the help and generosity of several people My colleagues at the International Business Centre (Aalborg University) provided me with an enriching academic atmosphere and consistently engaged in stimulating intellectual conversations with me My sincere thanks to all of them During the process of the writing itself, many of my colleagues and friends provided me with invaluable assistance at different stages I must, however, single out Professors Olav Jull Sørensen, Henrik Schaumburg-Müller and Hans Gullestrup, who have been kind enough to discuss earlier drafts of some of the chapters with me They saved me from serious errors and compelled me to think through the implications of my arguments Let me add in the same breath, however, that all factual errors and errors of perception and analysis in the book remain solely my responsibility I am also immensely grateful to the following institutions for providing me with academic “homes” during this intellectual journey: University of Ghana Business School, where it all began; Copenhagen Business School, where I received my PhD in Business Economics in 1981; University of Nairobi (Department of African Studies), where I did my empirical investigations about managerial behaviour in Kenya; and Aalborg University, Department of Business and Management, my academic home for the past 25 years Finally, I would like to express my profound gratitude to my wife and children, without whose encouragement and support the book would not have been completed To them, I extend my sincere thanks viii Part I The Context and Trends of Economic Development in Sub-Saharan Africa 264 Bibliography Stiglitz, J E (1988) “Economic organization, information and development”, in C Hollis and T N Srinivasan (Eds.) 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“Production of trust: institutional sources of economic structure, 1840–1920”, Research in Organizational Behavior, Vol 8, pp 53–111 Index Abdellatif, M., 161 Abramowitz, Moses, 10, 13, 51, 91 Acemoglu, D., 43, 64, 67, 88 Achieving Society (McClleland), 63 Adelman, Irma, 13 Adler, Nancy J., 144 Adler, Paul S., 12 African culture economic activities, 117–19 emerging, 121–5 familism, 113–15 indulgence, 119–21 institutional capability, 116–17 non-kin relations, 115–16 past orientation, 119–21 religious activities, 117–19 short-termism, 119–21 trust, 116–17 African Growth Opportunity Act (AGOA), 193 Agbodeka, Francis, 26 Agbor, Julius A., 23 Ajayi, S Ibi, 206 Ajzen, Icek, 71, 162 Akyuz, Yilmaz, 3, Alacevich, Michele, 10 Alderman, H., 175 Alence, Rod, 68 Ali, M Yunus, 204 Allaire, Yvan, 101 Alvesson, M., 90, 217 Amabile, T M., 159 Amin, Samir, 48 Amsa, P., 102 Anheier, Helmut K., 62 anti-business attitudes, 117, 212 Appadurai, A., 217 Apter, David, 26 Argyris, C., 169 Arikan A M., 50 Armstrong, Harvey, 52 Arndt, S., 192 Aryee, Samuel, 145 Ashford, S J., 145 Ashforth, Blake E., 105 Assimeng, Max, 115, 119 Astrachan, J H., 161 Atkinson, J W., 134 Austin, Gareth, 19, 22 Avolio, Bruce J., 135, 137 Ayittey, G B N., 67 Babatunde, R O., 175 Baker, Wayne E., 14 Bandura, A., 157 Banfield, Edward C., 75 Barakatt, Cynthia, 6, 9, 70 Barley, Stephen R., 105 Barney, J B., 50, 52, 53, 166, 191, 197, 199 Barr, Abigail, 96 Barroso Castro, C., 138, 139 basic capabilities, 56 Bass, B M., 131 Bates, Reid, 104, 106 Benson, J K., 83 Berg, Elliot, 38 Beuving, J Joost, 114 Beveridge, A A., 182 Bhagwati, Jagdish, 11 Biggart, N., 46, 115 Bigler,W R., 102 Bilkey, W J., 190, 201 Blair, Edmund, 120 Blake, R R., 131 Blanchard, Ken, 131, 133, 149 Bloch, Harry, 14, 200 Bloom, D E., 43 Blunt, P., 146 Boal, K B., 65 Bodomo, Adams B., 35, 36 Bolden, Richard, 131 Bonsu, Samuel K., 120 Borys, B., 196 Boter, Håkan, 92, 101, 102, 156, 213 Botshen, G., 203 268 Index Botswana, 23 Bourdieu, P., 57, 64 Bowman-Upton, N., 155 Boyer, R., 64 Braczyk, Hans-Joachim, 210 Branco, M., 75, 81, 114 Broadberry, Stephen, 8, 38 Brockhaus, Robert H., 156 Brockhaus, Robert H Sr., 155 Browitt, Jeffrey, 77 Brumley, K., 57 Brush, C G., 151, 156 Bryson, J M., 65 Buame, Samuel, 184, 185 Buame, S C K., 159, 183 Buckley, Peter J., 187 Burns, J M., 134 Burt, R S., 12, 46, 192 Busenitz, L W., 158 buyer-driven commodity chains, 193 Callaghy, T., 22 Cameroon, 189, 213 capitalism, 5, 40, 49, 63, 117, 216 Cardoso, F H., 48 Carland, J W., 155 case study ex-politician business owner in Bobo-Dioulasso, 180–1 Moussa – lifestyle businessman, 179–80 Casson, Mark C., 187 Cavusgil, S Tamer, 190, 201 Certo, T S., 177 Chafer, Tony, 21 Chang, Johannes Han-Yin, 75 charismatic entrepreneur, 155 Chatman, Jennifer A., 106 Chenery, H., 41–2 Chen, M H., 177 Cheru, Fantu, 35 civil society culture, impact on, 89–90 development thinking, 59, 61–3 embeddedness, 13, 50, 60–1, 107, 159 human capability, 57–60, 62–3, 70, 72–3 269 social capital, 61 socialization, 62, 64 Clark II, W W., 44 clusters co-evolution process, 209 concept, 208 co-optition concept, 209 cross-border initiatives, 209–10 geographical specialization, 209 growth-enhancing impacts, 210 innovation-driven integration, 211 institutional initiatives, 211 potential benefits, 209 regional innovation system, 210 regionalization, 208–11 trans-border formation, 210 cognitive embeddedness, 45–6 Cohen, Wesley M., 164 Coleman, James S., 96 Collin, F., 94 combined capabilities, 56 Conger, J A., 139 Cowling, M., 156 Cromie, S., 155 Crossan, Mary M., 164, 166, 197 cultural embeddedness, 45–6 culture change process, 84–8; determining factors, 88–90; endogenous factors, 88 characteristics, 83–4 civil society’s role, 89–90 concept, 78–9 Hofstede’s cultural model: criticism, 81–2; individualismcollectivism, 80; indulgence versus restraint, 81; long-term and short-term orientation, 80–1; masculinity–femininity, 80; norms, 82–3; power distance, 79; relationships, 82–3; uncertainty avoidance, 79–80; values, 82–3 culture oriented economic development (COED), 15 Cummings, L L., 145 Czinkota, M R., 201, 203 270 Index Daft, Richard, 105 Dahlberg, Steven, 66 dan Watkin, D S., 156 Database of Professional Skills, 124 Davenport, T., 95 Davidson, Basil, 20, 22 Davidsson, P., 153 De Cremer, David, 149 Deng, Francis M., 81 Dercon, S., 175 Dess, G G., 177 development thinking capability perspectives, 52–3 civil society’s role, 59, 61–3 entrepreneurial orientation, 70–1 global orientation and integration, 69–70 institutional capabilities, 64–5 social space, 57–8 strategic management, 71–2 theoretical framework, 54–7 Dicken, P., 187 DiMaggio, Paul, 45 DiTomaso, N., 100, 102, 144 Doherty, L., 92 Dolan, Catherine, 195 Dollar, D., 189 Dorfman, P W., 81 Doz, Yves L., 198 Dulani, Boniface, 38, 39 Dumont, René, 19 Dunford, Michael, 52 Dunning, J H., 192 East African Community (EAC), 211 Easterly, W., 43 Economic Community of Central African States (ECCAS), 211 economic growth African exports, 189, 200–1, 205–6, 212 buyer-driven commodity chains, 193 economic sociologist’s perspective, 44–6 Foreign Direct Investment (FDI), 189–90 global commodity chains (GCC), 192–3 government policy interventions, 213–14 institutional perspectives, 44–6 national business systems perspective, 46–7 neoclassical perspectives, 41–2 neo-Marxist conceptualizations, 47–9 non-growth phenomenon, 42–4 private enterprise’s role, 49–50 producer-driven commodity chains, 192 economic integration free trade arrangements, 206 regionalization, 206–7 trade bloc, 207–8, 211 Economic Recovery Programme, 27 Edoho, Felix M., 4, 68 Ehrhart, M G., 135 Eicher, T., 225n.4 Eisenhardt, Kathleen M., 53, 198 embeddedness business community, 15, 47, 167, 192, 223 in civil society, 13, 50, 60–1, 107, 159 economic transactions, 45, 216 knowledge generation, 166, 169–70, 172–3, 197 social network, 45, 69, 96 social resources, soft assets, 222 subcultures, 93 types, 45–6 enterprise management, 9, 14, 54, 56, 74, 154 entrepreneurial activities ex-politician business owner in Bobo-Dioulasso (case study), 180–1 familism, role in, 182–5 Moussa – lifestyle businessman (case study), 179–80 soft liabilities, 184, 219–20 staff recruitment and placement, 183–4 survivors and opportunists, 178 typologies, 175–82 weak civility, 183 Index entrepreneurs charismatic, 155 creative actions, 177 definition, 155 eye-catchers, 178 finishers, 155–6 growth-oriented, 163–4, 175, 177 imitation-oriented, 177 innovation-oriented, 177 lifestyle business owners, 176–8 see also case study necessity, 162–3, 175–7 opportunity, 163 orphan stars, 178 pragmatist, 155 social context, 151 stagnators, 177 starters, 155 successful, 158, 172 survivors, 178 women, 123, 156 see also entrepreneurship entrepreneurship Austrian tradition, 153, 157 behavioural perspective, 160–1 Chicago tradition, 153–4 contextual perspective, 160–1 familism, 161 formation in developing countries, 162–3 gender perspective, 156–7 German tradition, 153 identity perspective, 157–8 intention, 162 learning perspectives, 171–3 process perspective, 158–60 traits perspective, 154–6 Erikson, T., 162 Ethiopia, 35, 189 Etounga-Manguelle, D., 114 Evans, J W., 49 external victimization, 5, 49 Fafchamps, M., 40, 50, 69, 70, 116, 188, 196 Faletto, E., 48 271 familism African culture, 113–15 entrepreneurial activities, 161, 182–5 Fast, M., 44 Fiedler, F E., 131, 133, 134 finishers, 155–6 Firsirotu, Mihaela E., 101 Fischer, Claude S., 93 Folker, Cathleen, 161 Foreign Direct Investment (FDI) examples, 7–8 in Ghana, 190 IMF initiatives, 27 role in economic growth, 189–90 formal capabilities, 56 Fosu, A K., 7, 23, 24, 33 Frank, A G., 48 Freidberg, Susanne, 226n.1 Fukuyama, Francis, 97, 98, 100 Gagliardi, P., 144 Gaglio, C M, 158 Gardner, J W., 138 Gardner, Leigh, 8, 38 Garlick, P C., 182 Gartner, W B., 160 Geda, A., 211, 212 Geertz, Clifford, 77 Gelb, Alan, 43 gender perspective cultural dimension, 157 male and female entrepreneurs, comparison, 156–7 non-traditional business sectors, 156 Gereffi, Gary, 192 Ghana economic growth (post-independence), 26–8 enterprise management, 54 exports, 189 family relationship, 184–5 FDI, 190 kente, 195 local governance system, 138 management practices, 147–8 Marxism, 116 national accounting system, political history, 24–6 272 Index Gibbon, P., 117, 193, 195 Gladwell, Malcolm, 90 Gordon, G G., 100, 102, 144 Gore, Charles, 3, Gotham, K F., 57 Granovetter, Mark, 70, 97 Granovetter, M S., 45, 191, 195 Grant, R M., 166, 197 Greenwood, D T., Gregory, K., 94, 105 Groeschl, S., 92 Grondona, Mariano, 216 growth oriented entrepreneurship innovation perspectives, 165–7 knowledge management, 165–6 national business system, 167–9 organizational learning, 168–71 personality traits, 171–3 Guiso, L., 90 Gulati, Ranjay, 98, 166, 197 Gullestrup, Hans, 77, 78, 83–5, 88, 226n.1, 226n.3 Gundlach, E., 65 Gupta, Sanjeev, 206, 207, 212 Gyekye, Kwame, 119 Gyimah-Boadi, E., 26 Habbershon, T G., 161 Hagen, Everett E., 75 Hailu, Degol, Hall, E T., 120 Hamel, G., 106, 166, 197, 200 Hamilton, D., 151 Hamilton, G., 46, 115, 151 Hampden-Turner, C., 77, 78 Hansen, Michael W., 70, 165, 204 Harper, D A., 153, 172, 173 Harris, Marvin, 77 Harrison, Lawrence E., 10, 13, 100 Haruna, Peter F., 127, 138 Hatch, Mary Jo, 100, 101 Hedberg, B., 101, 104, 169 Helgo, Thomas I T., 5, 132 Heng, Lau Joo, 145 Hersey, P., 131, 133 Himbara, D., 183 Hirschman, Albert O., 10 Hitt, M A., 161 Hjorth, D., 158 Hoeffler, A E., 6, 9, 33 Hofstede, G., 78–82, 113, 121, 157 Hofstede’s cultural model criticism, 81–2 individualism-collectivism, 80 indulgence versus restraint, 81 long-term and short-term orientation, 80–1 masculinity-femininity, 80 norms and values, 82–3 power distance, 80 relationship with people, 82–3 uncertainty avoidance, 79–80 Holden, Higel J., 170 Hollingsworth, J R., 64 Holmquist, C., 92, 101–2, 156 Holt, R P F., Horth, D M., 141 Hoselitz, Bert F., 75 House, R J., 81 Howell, J P., 81 Huber, George P., 164 human capability aggregation levels, 56–7 civil society’s role, 59–63, 72–3 classification, 56 culture, 57–60, 62–3, 70, 72–3 determinants, 59 development thinking, 52–3 entrepreneurial orientation, 70–1 global orientation, 69–70 governance aspect, 65–8 individual learning, 60 innovation, 70–1 institutional context, 64–5 interactive processes, 60 leadership development, 65–8 learning perspective, 171–3 organizational cultures, 105–6, 108–10 social space, 57–8 strategic management, 71–2 subcultures, 98–9 theoretical framework, 54–7 human capital definition, 12, 55, 161 development, 16, 21–2, 32 and human capabilities, 56, 219 investment, 30, 34 Index low savings, neoclassical perspectives, 41 Human Development Report, 55, 59, 221 Humphrey, John, 98 Huntington, Samuel P., 100 Huq, M M., 117 Hutchful, Eboe, 26, 117 Hyden, G., 23, 62, 96, 97 Hynes, B., 158 Ibeh, K I N., 194 Inglehart, Ronald, 14 Inkpen, Andrew C., 164, 166, 197 innovation institutional context, 165–6 national business systems perspective, 167–8 national system, 166–7 innovation-oriented cultures, 164 institutional capabilities, 58–9, 64–5, 68, 73, 107, 158, 223 institutional embeddedness, 45–6 institutional quality, 14, 16, 65, 69, 73 internationalization process of firms downstream approaches, 194, 196, 198–203, 205, 213 foreign business knowledge, 191 foreign institutional knowledge, 191 internationalization knowledge, 191 upstream approaches, 193, 196–205, 208, 213 International Monetary Fund (IMF) Africa’s exports, 34 FDI initiatives, 27 neo-liberal economic regime, 48 structural adjustment reform, 33 Ivory Coast, 22–3 Jackson, T., 145, 148 Jacobs, T O., 132 Jacques, E., 132 Jarillo, J C., 177 Javidan, M., 81 Jeffries, Richard, 26 Jehn, Karen A., 106 Jemison, D B., 196 Jenks, Chris, 83 Jenster, P V., 102 273 Jerven, Morten, 6, 43 Johanson, J., 70, 190 Johnson, B., 164 Johnson, C., 140 Jones, M L., 145–6 Kahneman, Daniel, 46 Kahn, J., 218 Kaldor, Nicholas, 41 Kanungo, R N., 139 Kariuki, Julius Gatune, 3, 9, 122 Karp, Tom, 5, 132 Katsikea, C S., 190, 201 Katz, J A., 158 Kaynak, Erdener, 201 Kayode-Anglade, S., 36 Kebret, H., 211 Kellner-Rogers, Myron, 66 Kenya Asian migrants, 183 economic growth, 29–30 Kenya African Democratic Union (KADU), 28 Kenya Peoples’ Union (KPU), 28 management practices, 148 political history, 28–9 Khasawneh, Samer, 104, 106 Kierzkowski, H., 192 Kirk, Philip, 131 Kirzner, I M., 153, 160, 172, 173 Klasen, Stephan, 50, 71 Klein, K J., 135 Kluckhohn, C K., 82 Kluckhohn, F R., 77, 82 Knight, F H., 153 Knights, David, 88 knowledge management explicit, 169–71 institutional context, 165–6 patterns of interaction, 170–1; combination, 170–1; externalization, 170–1; internalization, 170–1; socialization, 170–1 tacit, 161, 169–71, 173, 196, 210 Knudsen, Thorbjørn, 160 Koh, Anthony C., 161 Kontinen, Tanja, 161 Koschatzky, K., 214 274 Index Kotabe, M., 203 Kotey, Bernice, 161 Kothari, V., 201 Kraay, A., 189 Krishnan, P., 175 Krueger, N F., 71, 162 Kuada, John, 5, 50, 83, 95, 105, 115, 123, 131, 138, 145–8, 151, 157, 159, 183–5, 193–6, 204, 208 Kumar, R., 198 Kupferberg, Feiwel, 151 Kuznets, Simon, 42 Kwon Seok-Woo, 12 Lantos, G P., 162 La Pira, Frank, 162 Lavoie, D., 160 Lawler, J J., 130, 131, 135 Lawrence, P., 104 leaders despotic, 137 first-generation African, 19, 22 followers and, 132, 134–6, 148 governance capabilities, 65–8 motivation level, 133 peer, 140 successful, 131–2 transformational, 12, 58, 135–7, 140, 149 visionary, 12–13, 58 see also leadership leadership authentic theory, 137 autocratic, 107 choice of style, 133 complexity theory, 137 contemporary theories: behaviourist, 130; contingency, 128; great man, 130; situational leadership, 130; trait, 130, 132, 156; transactional, 130, 134–5; transformational, 130, 135–7 existentialist perspectives, 132 governance capabilities, 65–8 human capability development, 65–8, 139–40 integrated theory, 137 meta-theoretical perspectives: constructionist theories, 131; critical theories, 131; essentialist theories, 131–2; expectancy theory, 134; relational theories, 131, 134–7 re-conceptualization of theories, 137–9 servant and coach theory, 137 learning perspective capability development, 171–3 double loop, 169 organizational innovation, 168 process of unlearning, 168–9 single loop, 169 Lederman, Daniel, 204 Lefebvre, Henri, 57 Lemma, Solome, 225n.4 Lenz, G S., 114 Leonard, David K., 144 Leonidou, L C., 190 Lessem, Ronnie, 110 Letki, Natalia, 98, 108 Levine, R., 43 Levinthal, Daniel A., 164 Lewis, Peter M., 117 Lewis, W Arthur, 114 Lightfoot, C., 61, 218 Lindsay, Stace, 216 Lipset, S M., 114 Logan, Carolyn, 38, 39 Lorsch, J., 104 Loxley, J., 27 Lumpkin, G T., 177 Lundquist, Karl-Johan, 210 Lundvall, B.-Å., 165, 166 Luostarinen, Reijo, 193 Maak, Thomas, 135 Maathai, Wangari, Mael, Fred, 105 Mambula, Charles J., 159 management development African culture, 142–6, 148, 150 catching up approach, 143 culture-induced goals, 145–6 leadership style, 148–50 resource allocation, 149–50 self-induced goals, 145 Marion, M., 140 Maritz, A., 162 Index Markus, H., 157 Marquardt, M., 106 Martin, J A., 53, 101, 108 Martin, Joanne, 83 Mathews, John A., 69, 208 Mattes, Robert, 38, 39 Maundeni, Z., 67 Mazrui, A., 78 McCarthy, B., 155 McClelland, David C., 154–5, 226n.3 McCombie, J S L., 42 McCormick, Dorothy, 44, 168, 176, 178, 182–3 McLaurin, J Reagan, 135 McSweeney, Brendan, 81 Mellahi, Kamel, 185, 221 Merton, R K., 82 Metcalfe, S., 167 Meyerson, D., 101, 108 Mills, Greg, 38, 49 Milner, Andrew, 77 Mintzberg, H., 72 Montgomery, J D., 143, 145, 147, 149 Moore, Mick, 13, 114, 159, 182 Morgan, G., 169, 201 Morgan, Robert E., 190, 201 Morris, Cynthia Taft, 13, 51 Morschett, D., 190 Mouton, J S., 131 Mowday, R., 139 Moyo, Dambisa, 37, 123 Murphy, G., 109 Myrdal, Gunar., 75 Nahavandi, A., 129, 132, 135 Najam, Adil, 3, 7, 9, 122, 124 Namibia economic growth, 31–2 exports, 189 political history, 30–1 nascent enterprises, 159, 167, 185 Ndulu, Benno, 19 Nee, Victor, 151, 159 Nelson, R R., 166, 197, 207 neoclassical economics alternative explanations, 4, 9, 44 criticism, 10 economic growth perspectives, 14, 16, 40–1 275 on government policies, 6–7 neo-Marxist conceptualizations, 47–9 slow economic growth in Africa, 42–4 soft economics, 10, 13, 216 Neshamba, Francis, 182 Nevin, John R., 190 new economic growth theory, 51 Nielsen, Bo Bernhard, 97 Noland, Marcus, 115 Nonaka, Ikujiro, 170, 171 non-economic logic, 13, 45, 96 non-growth syndrome, 4–5, 42, 49 non-tariff barriers, 212 Nooteboom, Bart, 98 North, D C., 64 Nti, K O., 198 Nurius, P., 157 Nussbaum, Martha C., 52, 56 Nwankwo, Sonny, Nyambura-Mwaura, Helen, 120 Oberschall, A R., 182 Obi, Cyril, 35 Ochieng, William R., 29 O’Connell, Stephen A., 33 Ojala, Arto, 161 Oke, Adegoke, 134 Okoroafo, Sam C., 161 Okpara, John O., 145, 182, 183 operational environments, 100, 103, 179, 200, 212 optimism, 3, 27 organizational cultures human capability development, 105–6, 108–10 individual learning, 106–8 institutional characteristics, 106–8 multiple, 104–5 personality development, 108–10 structures and processes, 100–4 overseas training programmes, 148 Pack, H., 200 Page, J M., 200 Paldam, M., 65 Palus, C J., 141 Panabel, Jean-Pierre, 23, 224n.1 276 Index Panagariya, Arvind, 11 Paré, S., 138 Parsons, Talcott, 82, 93, 101 Paxson, C., 175 Pedersen, Poul Ove, 44, 168, 183 performance appraisal, 149 pessimism, 3–4, Peters, T., 144 Pettigrew, A M., 104 Phillips, David, 5, 37, 225n.2 Polanyi, Karl, 45, 169 Polanyi, M., 45, 169 political embeddedness, 45–6 Porter, L., 139, 145 Porter, M E., 164, 192, 194, 208 Portes, Alejandro, 12, 96 pragmatist entrepreneur, 155 Prahalad C K., 106, 166, 197, 200 Prebisch, Raul, 49 Psacharopoulos, G., 55 Puhakka, V., 201 Qaim, M., 175 Rabino, S., 201 Ranis, Gustav, 10, 11 recruitment policies, 149 regional economic communities (RECs), 211 regionalization concept of clusters, 208–11 formation of regional economic communities, 211 limitations, 212 non-tariff barriers, 212 operational environments, 212 policy implication, 213–14 trade barriers, 211–12 UNCTAD (2013) report, 211 Reynolds, P D., 158, 163 Richardson, I., 158 Ricks, D A., 201 roadblocks, 212–13 Robinson, J A., 64, 67 Rodrik, Dani, 14, 65 Rohn, O., 225n.4 role modelling, 171 Rolfe, Robert, 7, 189, 205 Romer, P., 55 Rosa, P., 151 Rostow,Walt W., 14, 41, 75 Rotberg, Robert I., 127 Rousseau, Denise M., 136 Rugman, A M., 187, 209 Russell W Belk, 120 Rutten, Mario, 176 Sabel, Charles F., 97 Sachs, J D., 43 Sackmann, Sonja A., 83 Saffold, G S., 103 Salamon, Lester M., 62 Sandberg, J Sanders, Jimy M., 151, 159 Schein, E H., 83, 100, 104 Schiff, M., 207 Schmitz, Hubert, 98 Schneider, M., 137 Schön, D., 169 Schumpeter, J A., 160, 164 Schwartz, Eleanor, 156 Selznick, P., 101, 104 Sen, A., 11, 52, 53, 74 Senegal, 23, 159, 189 Sereke-Brhan, Heran, 6, 9, 70 Seringhaus, F H Rolf, 203 Sexton, D L., 155 Shackle, G L S., 153 Shamsuddoha, A K., 204 Shane, S., 155, 158, 176 Shapero, A., 71, 162 Shefner, J., 57 Simonin, B., 97 Sirmon, D G., 161 Smelser, N J., 82 Smircich, L., 102 social capital civil society’s role, 61 co-leadership, 138 concept, 12, 96–7 creation, 89, 184, 220 cultural characteristics, 74 development perspectives, 52 economic capital and, 176 kinship and, 113 non-kin relations, 115 religion’s role, 117 small business types, 175 Index socioeconomic network, 192 transformational leadership and, 137 trust and, 98, 116 social infrastructure, 11, 96 socialization civil society’s role, 61, 64 cross cultural setting, 70 cultural models, 78, 112, 217–18 human capabilities, 56 identity perspective, 157 knowledge conversion, 170–1 non-kin relations, 115 organizational, 76, 101 situational adaption, 90 transmission mechanism, 77 social liabilities, 74 social networks, 45, 62, 76, 92, 96, 116, 140, 146, 159, 164, 176, 178, 181, 184, 220 social obligation, 62, 80, 114, 159 social relations, 12, 57, 59, 83, 98, 159, 163 sociocultural context African management, 144 class structure, 87 decision making, 216 entrepreneurial intention, 70 foreign operations, 192 human factor, 5, 11–13, 15 institutional capabilities, 107, 165, 167, 218 organizational system, 102, 109 private enterprise-led economic progress, 49 world market, 187 socio-economic growth, Söderbaum, F., 68, 210 soft assets, 184, 197, 219–20, 222 see also social capital Somers, M., 137 Sorensen, J B., 103 Sorensen, Suna, 158 South African Customs Union (SACU), 211 Spender, J.-C., 170 Spio-Garbrah, N., 36 Spolaore, Enrico, 14 277 Spring, Anita, 7, 189, 205 Stacey, R D., 169 Starbuck, W., 104 starters, 155–6 Steel, W F., 49 Steers, R., 139, 145 Stevens, Greg A., 155 Stevenson, H H., 177 Steyaert, C., 71, 158, 160 Stogdill, R M., 131 Strodtbeck, F L., 77, 82 Sturgeon, T J., 192, 195 subcultures concept, 92–4 human capability development, 98–9 social networks, 96–7 trust, notion of, 97–8 typology: laggard, 95; leading, 95; mainstream, 95 Sudan, 34–5, 81, 127, 189–90 Sundin, E., 156 Swedberg, Richard, 160 Swogger, Kurt, 155 systemic failures, 167 Takeuchi, Hirotake, 170, 171 Tang, S H K., 14, 200 Tanzania, 22–3, 38, 116 Taylor, C., 61 Taylor, Jim, 52 Taylor, L., 42 Teece, D J., 52, 53, 55, 74 Tesar, G., 52, 53, 55, 190, 197 Thirlwall, A P., 42 Thompson, Herb, 14 trade agreements, 207, 212 traits perspective individual disposition, 154 McClelland’s perspective, 154–5 strategic behaviour, 155 transmission conduits, 58 Transnational Corporations (TNCs), 187, 192, 208 Triandis, H C., 77, 78, 81 Trippl, Michaela, 210 Trompenaars, F., 77, 78 Tsukada, Raquel, Tuma, Elias H., 117, 147 278 Index Tversky, Amos, 46 Tyler, T R., 108 Udogu, Ike E., 68, 142 Uganda, 22, 125, 189 Unger, Danny, 96, 151 United Nations Conference on Trade and Development (UNCTAD), 189, 206, 211 United Nations Development Programme (UNDP), 15, 55, 60 Upadhya, Carol, 176 Vahlne, J.-E., 70, 190 Valsiner, J., 61, 218 van de Walle, N., 23 Van Dijk, Eric, 149 Venkataraman, S., 158, 176 Verbeke, A., 209 von Friedrichs, Yvonne, 213 Wacziarg, Romain, 14 Walumbwa, F O., 135 Wardle, F., 139 Warner, A M., 43 Waterman, R., 144 Watkin, J M., 156 Weick, K E., 103, 105, 160, 172 Welch, Lawrence S., 193 Wernerfelt, Birger, 52 Westhead, P., 70, 156 Weyland, Kurt, 44 Wheatley, Margaret J., 66 Whitley, R., 40, 46, 97, 143, 144, 167, 226n.1 Williams, Jerome D., 98 Williams, M L., 161 Williamson, O E., 45 Willmott, Hugh, 88 Winter, L., 207 Winter, S G., 166, 197, 207 Wood, Geoffrey T., 185 World Bank African Diaspora Programme, 124 civil society participation, 221 enterprise-development policies, 71 on Ghana, 27 intra-African transactions, 213 “new growth perspectives,” 74 rule of law, 66 on SSA’s growth, structural adjustment reform, 33, 48 tariff cost incidence, 212 Wynn, Pamela, 145, 183 Yang, Y J., 177 Yang, Yongzheng, 206, 207, 212 Yukl, G., 129, 132 Zabusky, Stacia E., 105 Zambia, 21, 23–4, 116, 123 Zellweger, T W., 161 Zerubavel, E., 218 Zhu, Weichun, 135, 137 Zucker, L G., 98 Zukin, Sharon, 45 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Acknowledgements viii Part I The Context and Trends of Economic Development in Sub- Saharan Africa Introduction Political and Social Context of Economic Development in Sub- Saharan Africa 19 Explaining... Context of Economic Development in Sub- Saharan Africa Introduction As hinted in Chapter 1, a significant event in the history of SSA countries has been the political domination of the subcontinent