Skip to main content

Advertisement

SpringerLink
Log in

International entrepreneurship in resource-rich landlocked African countries

  • Published:
Journal of International Entrepreneurship Aims and scope Submit manuscript

Abstract

Despite the increase in research about international entrepreneurship, relatively little is known about the process in Africa. This is due to the disparity between the actualization of business ventures and global perceptions of African entrepreneurs. As a result of the diversity of countries within the African continent, the nature of international entrepreneurship varies with cultural and historical context. To address this research gap, we discuss how international entrepreneurship in Africa differs to the more studied traditionally North American and European perspective. To do this we develop a number of research propositions for resource-rich landlocked African countries (Botswana, Zambia, and Zimbabwe) that have unique characteristics in terms of how they approach international entrepreneurship. The research propositions suggest that resource-rich landlocked African countries need to focus on informal networks and cultural attributes as a way to differentiate themselves in the international marketplace. Managerial implications and theoretical research suggestions for differentiating resource-rich landlocked African countries from the more resource scarce and coastal countries are stated.

Résumé

Malgré l'augmentation de la recherche sur l'entrepreneuriat international, on sait relativement peu de choses sur le processus en Afrique. Ceci est dû à la disparité entre l'actualisation des entreprises commerciales et les perceptions globales des entrepreneurs africains. En raison de la diversité des pays du continent africain, la nature de l'entrepreneuriat international varie selon le contexte culturel et historique. Pour combler cette lacune de recherche, nous discutons comment l'entrepreneuriat international en Afrique diffère de la perspective traditionnellement nord-américaine et européenne plus étudiée. Pour le faire, nous élaborons certaines propositions de recherche pour les pays africains sans littoral mais riches en ressources (Botswana, Zambie et Zimbabwe) ; ces pays ont des caractéristiques uniques en termes d'approche de l'entrepreneuriat international. Les propositions de recherche suggèrent que les pays africains sans littoral mais riches en ressources doivent se concentrer sur les réseaux informels et les attributs culturels comme moyen de se différencier sur le marché international. Les implications managériales et des suggestions de recherche sont énoncées.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Acs ZJ, Amoros JE (2008) Entrepreneurship and competitiveness dynamics in Latin America. Small Bus Econ 31(3):305–322

    Article  Google Scholar 

  • Adner R (2012) The wide lens: a new strategy for innovation. Penguin, Harmondsworth

    Google Scholar 

  • African Economic Outlook (2011) Africa and its emerging partners, the African Development Bank, Organization for Economic Co-operation and Development, United Nations Development Program and United Nations Economic Commission for Africa

  • Ahlstrom D, Bruton GD (2006) Venture capital in emerging economies: networks and institutional change. Enterp Theory Pract 30(2):299–320

    Article  Google Scholar 

  • Alderman H, Paxson C (1992) Do the poor insure? A synthesis of the literature on risk and consumption in developing countries. World Bank Policy Research Working Paper No. 1008, World Bank, Washington

  • Archibong CA (2010) Entrepreneurship as a critical and missing factor in economic development of poor nations: a systematic analysis of factors of production. IUP J Bus Strateg 7(1/2):1–2

    Google Scholar 

  • Audretsch DB (1995) Innovation and industry evolution. MIT Press, Cambridge

    Google Scholar 

  • Barr A (2000) Social capital and technical information flows in the Ghanaian manufacturing sector. Oxf Econ Pap 52(3):539–559

    Article  Google Scholar 

  • Bewayo ED (2012) Will entrepreneurship lead to national development in Africa? Available at www.primejournal.org/BAM/pdg/2012/August/Ovat.pdf (Accessed 20 Dec 2015)

  • Boter H, Hjalmarsson D, Lundstrom A (1990) ‘Outline of contemporary small business policy’. Available at www.sbaer.uca.edu/research/icsb/1999/84.pdf (Accessed 20 Dec 2015)

  • Bruton GD, Ahlstrom D, Obloj K (2008) Entrepreneurship in emerging economies: where are we today and where should the research go in the future. Enterp Theory Pract 32(1):1042–2587

    Google Scholar 

  • Bruton GD, Ireland RD, Ketchen DJ (2012) Toward a research agenda on the informal economy. Acad Manag Perspect 26(3):1–11

    Article  Google Scholar 

  • Chandra Y, Styles C, Wilkinson, I (2009) The recognition of first time international entrepreneurial opportunities: evidence from firms in knowledge-based industries. Int Mark Rev 26(1):30–61

  • Chandra Y, Styles C, Wilkinson IF (2015) Opportunity portfolio: moving beyond single opportunity explanations in international entrepreneurship research. Asia Pac J Manag 32:199–228

    Article  Google Scholar 

  • Chrysostome E (2010) The success factors of necessity immigrant entrepreneurs: in a search of a model. Thunderbird Int Bus Rev 52(2):137–152

    Article  Google Scholar 

  • Chukwuemeka E (2011) The challenges of government policy on entrepreneurship in Nigeria. J Commer 3(2):11–20

    Google Scholar 

  • Coviello N, Munro H (1995) Growing the entrepreneurial firm: networking for international market development. Eur J Mark 29(7):49–61

    Article  Google Scholar 

  • Dana L-P (1995) Entrepreneurship in a remote sub-Arctic community: Nome, Alaska. Enterp Theory Pract 20(1):55–72

    Google Scholar 

  • Dana L-P (1996) Self-employment in the Canadian sub-Arctic: an exploratory study. Can J Adm Sci 13(1):65–77

    Article  Google Scholar 

  • Dana L-P (1997) Voluntarily socialist culture and small business in the Kingdom of Lesotho. J Small Bus Manag 35(4):83–87

    Google Scholar 

  • Dana L-P, Etemad H, Wright R-W (2000) The global reach of symbiotic networks. J Euromarket 9(2):1–16

  • Dana L-P, Etemad H, Wright R (2001) Symbiotic interdependence. In: Welsh D, Alon I (eds) International franchising in emerging markets. CCH Publishing, Riverwoods, pp 119–129

    Google Scholar 

  • Dana L-P, Morris M (2007) Towards a synthesis: a model of immigrant and ethnic entrepreneurship. In: Dana L-P (ed) Handbook of research on ethnic minority entrepreneurship: a coevolutionary view on resource management. Edward Elgar, Cheltenham

  • Dimov DP (2007) Beyond the single-person, single-insight attribution in understanding entrepreneurial opportunities. Entrep Theory Pract 20:10–21

    Google Scholar 

  • Dunning JH (1980) Towards an eclectic theory of international production: some empirical tests. J Int Bus Stud 11:9–31

    Article  Google Scholar 

  • Dunning JH (1988) The eclectic paradigm of international production: a restatement and some possible extensions. J Int Bus Stud 19(1):1–31

    Article  Google Scholar 

  • Dutt N, Hawn O, Vidal E, Chatterji AK, McGahan AM, Mitchell W (2015) How open system intermediaries address institutional failures: the case of business incubators in emerging market countries. Acad Manag J. forthcoming

  • Edoho FM (2015a) Entrepreneurship and socioeconomic development. Afr J Econ Manag Stud 6(2):127–147

    Google Scholar 

  • Edoho FM (2015b) Entrepreneurship paradigm and economic renaissance in Africa. Afr J Econ Manag Stud 6(1):2–16

    Google Scholar 

  • Elbanna S, Child J (2007) Influences on strategic decision effectiveness: development and test of an integrative model. Strateg Manag J 28(4):431–453

    Article  Google Scholar 

  • Ellis PD (2011) Social ties and international entrepreneurship: opportunities and constraints affecting firm internationalization. J Int Bus Stud 42:99–127

    Article  Google Scholar 

  • Ellis P, Pecotich A (2001) Social factors influencing export initiation in small and medium enterprises. J Mark Res 38(1):119–130

    Article  Google Scholar 

  • Etemad H (1999) Globalization and small and medium-sized enterprises: search for patent strategies. Glob Focus (Formerly Business and Contemporary World) 11(3):85–105

    Google Scholar 

  • Etemad H, Wright R, Dana L-P (2001) Symbiotic international business networks: collaboration between small and large firms. Thunderbird Int Bus Rev 43(4):481–500

    Article  Google Scholar 

  • Felzensztein C (2016) International entrepreneurship in and from emerging economies. J Int Entrep 14:5–7

    Article  Google Scholar 

  • Felzensztein C, Ciravegna L, Robson P, Amoros E (2015) The international strategy of Latin American SMEs: the effects of networks and entrepreneurship orientation. J Small Bus Manag 53(S1):145–160

    Article  Google Scholar 

  • Garba AS (2010) Refocusing education system towards entrepreneurship development in Nigeria: a tool for poverty reduction. Eur J Soc Sci 15(1):140–150

    Google Scholar 

  • Gatewood EJ, Boko S (2009) Globalization: entrepreneurial challenges and opportunities in the developing world. In: Acs ZJ et al (eds) The role of SMEs and entrepreneurship in a globalized economy. Ministry of Education and Research Globalization Council, Stockholm Available at www.regeringen.se/content/1/c6/12/58/93/d614cc47.pdf (Accessed 20 Dec 2015)

    Google Scholar 

  • Glavas C, Mathews S (2014) How international entrepreneurial characteristics influence internet capabilities for the international business processes of the firm. Int Bus Rev 23(1):228–245

    Article  Google Scholar 

  • Groh A, Liechtenstein H, Lieser K (2013) The global venture capital and private equity country attractiveness index. IESE, Barcelona

    Google Scholar 

  • Habiyakere E, Owusu RA, Mbare O, Landy F (2009) Characterising African immigrant entrepreneurship in Finland. In: Sigue S (ed) Repositioning African Business and Development for the 21st Century, peer reviewed proceedings of the 10th annual international conference held at the Speke resort and conference center. Makerere University Business School, Kampala

    Google Scholar 

  • Harrison LE (2006) Culture and economic development. Available at www.cato-unbound.org/2006/21/03/lawrence-e-harrison/culture-economic-development (Accessed 20 Dec 2015)

  • Himbara D (1994) Kenyan Capitalists, The State and Development. Lynne Rienner, Boulder

    Google Scholar 

  • Hohenthal J, Johanson J, Johanson M (2014) Network knowledge and business-relationship value in the foreign market. Int Bus Rev 23(1):4–19

    Article  Google Scholar 

  • Hoskisson RE, Eden L, Lau, CM, Wright M (2000) Strategy in emerging economies. Academy of management journal, 43(3):249–267.

  • Johanson J, Vahlne JE (1977) The internationalization process of the firm—a model of knowledge development and increasing foreign market commitment. J Int Bus Stud 8(1):23–32

    Article  Google Scholar 

  • Johanson J, Vahlne JE (2006) Commitment and opportunity development in the internationalization process: A note on the Uppsala internationalization process model. Management Int Review, 46(2):165–178.

  • Johanson J, Vahlne JE (2009) The Uppsala internationalization process model revisited: from liability of foreignness to liability of outsidership. J Int Bus Stud 40(9):1411–1431

    Article  Google Scholar 

  • Johanson J, Mattsson LG (1988) Internationalisation in industrial systems—a network approach. In: Hood N, Vahlne JE (eds) Strategies in Global Competition. Croom Helm, New York, pp 287–314

    Google Scholar 

  • Jolly R (2009) Economic commission for Africa: fighting to be heard? Briefing note no 21. UN Intellectual History Project. Available at www.unhistory.org/briefing/21ECA.pdf (Accessed 21 Dec 2015)

  • Jones MV, Coviello N, Tang YK (2011) International entrepreneurship research (1989–2009): a domain ontology and thematic analysis. J Bus Ventur 26(6):632–659

    Article  Google Scholar 

  • Kalitanyi V (2007) Evaluation of employment creation by African immigrant entrepreneurs for unemployed South Africans in Cape Town. Unpublished MCom Dissertation, University of Western Cape, Cape Town

  • Khavul S, Bruton GD, Wood E (2009) Informal business in Africa. Entrep Theory Pract 33(6):1219–1238

    Article  Google Scholar 

  • Khosa RM, Kalitanyi V (2015) Migration reasons, traits and entrepreneurial motivation of African immigrant entrepreneurs: towards an entrepreneurial migration progression. J Enterp Communities: People Places Glob Econ 9(2):132–155

  • Kiss AN, Danis WM, Cavusgil T (2012) International entrepreneurship research in emerging economies: a critical review and research agenda. J Bus Ventur 27(2):266–290

    Article  Google Scholar 

  • Klingebiel R, Stadler C (2015) Opportunities and challenges for empirical strategy research in Africa. Afr J Manag 1(2):194–200

    Google Scholar 

  • Kuada J (2009) Gender, social networks, and entrepreneurship in Ghana. J Afr Bus 10(1):85–103

    Article  Google Scholar 

  • Kuada J (2015) Entrepreneurship in Africa—a classifactory framework and a research agenda. Afr J Econ Manag Stud 6(2):148–163

    Google Scholar 

  • Lee SH, Williams C (2007) Dispersed entrepreneurship within multinational corporations: a community perspective. J World Bus 42(4):505–519

    Article  Google Scholar 

  • Li Y, Yao FK, Ahlstrom D (2015) The social dilemma of bribery in emerging economies: a dynamic model of emotion, social value, and institutional uncertainty. Asia Pac J Manag 32:311–334

    Article  Google Scholar 

  • Lingelbach DC, De La Vina L, Asel P (2005) What’s distinctive about growth-oriented entrepreneurship in developing countries, UTSA College of Business Center for Global Entrepreneurship Working Paper No. 1. Available at SSRN: http://ssrn.com/abstract=742605 (Accessed 20 Dec 2015)

  • Mambula CJ (2008) Effects of factors influencing capital formation and financial management on the performance and growth of small manufacturing firms in Senegal: recommendations for policy. Int J Entrep 12(4):92–106

    Google Scholar 

  • Manev IM, Groshev BS, Manolova TS (2005) The role of human and social capital and entrepreneurial orientation for small business performance in a transitional economy. Int J Entrep Innov Manag 5(4):298–318

    Google Scholar 

  • Manolova TS, Manev IM, Gyoshev BS (2014) Friends with money? Owners financial network and new venture internationalization in a transition economy. Int Small Bus J 32(8):944–966

    Article  Google Scholar 

  • Marsden K (1990) African entrepreneurs: pioneers of development. International Finance Corporation Discussion Paper No. 9. World Bank, Washington

  • McDougall PP, Shane S, Oviatt BM (1994) Explaining the formation of international new ventures: the limits of theories from international business research. J Bus Ventur 9(6):469–487

    Article  Google Scholar 

  • Moore M (1997) Societies, polities and capitalists in developing countries: a literature survey. J Dev Stud 33(3):287–363

    Article  Google Scholar 

  • Mudamburi T (2012) Sustainable millennium framework for managing entrepreneurship in developing countries in Africa (Zimbabwe case study). J Glob Entrep 2(1):9–18

    Google Scholar 

  • Naude WA, Havenga JJ (2005) An overview of African entrepreneurship and small business research. J Small Bus Entrep 18(1):101–119

    Article  Google Scholar 

  • Nelson RE, Johnson SD (1991) Entrepreneurship education as a strategic approach to economic growth in Kenya. J Ind Teach Educ 35(1):7–21

    Google Scholar 

  • Neshamba F (2006) Why do some small businesses grow faster and become successful while others do not get beyond the ‘foothills’?— some evidence from Kenya. J Afr Bus 7(1/2):9–30

    Article  Google Scholar 

  • Ngo VD, Janssen F, Falize M (2016) An incentive-based model of international entrepreneurship in emerging and transition economies. J Int Entrep 14:52–74

    Article  Google Scholar 

  • Nieto MJ, Fernandez Z (2006) The role of information technology in corporate strategy of small and medium enterprises. J Int Entrep 3:251–262

    Article  Google Scholar 

  • North DC (1990) Institutions, institutional change and economic performance. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • Nwankwo S (2005) Characterisation of black African entrepreneurship in the UK: a pilot study? J Small Bus Enterp Dev 12(1):120–136

    Article  Google Scholar 

  • Okpara JO (2007) Cultural influences on the work attitudes: a theoretical perspective. In: Okpara J (ed) Management and economic development in sub-Saharan Africa—theoretical and applied perspectives. Adonis and Abbey Publishers, London, pp 209–223

    Google Scholar 

  • Okpara JO, Wynn P (2007) The effect of culture on job satisfaction and organizational commitment: a study of information system managers in Nigeria. Afr J Bus Econ Res 2(2/3):9–36

    Google Scholar 

  • Osemeke M (2012) Entrepreneurial development and interventionist agencies in Nigeria. Int J Bus Soc Sci 3(8):255–265

    Google Scholar 

  • Oviatt BM, McDougall P (2005) Defining international entrepreneurship and modelling the speed of internationalisation. Enterp Theory Pract 29(5):537–553

    Article  Google Scholar 

  • Peiris IK, Akoorie ME, Sinha P (2012) International entrepreneurship: a critical analysis of studies in the past two decades and future directions for research. J Int Entrep 10(4):279–234

    Article  Google Scholar 

  • Pejovich S (1990) The economics of property rights: towards a theory of comparative systems. Kluwer Academic Publishers, Switzerland

    Google Scholar 

  • Peng M (2003) Institutional transitions and strategic choice. Acad Manag Rev 28(2):275–296

    Google Scholar 

  • Peng M, Sun S, Pinkham B, Chen H (2009) The institution-based view as a third leg for a strategy tripod. Acad Manag Perspect 22(3):63–81

    Article  Google Scholar 

  • Perry JT, Chandler GN, Markova G (2011) Entrepreneurial effectuation: a review and suggestions for future research. Enterp Theory Pract 36(4):837–861

    Article  Google Scholar 

  • Ruzzier M, Hisrich RD, Antoncic B (2006) SME internationalization research: past, present and future. J Small Bus Entrep Dev 13(4):476–497

    Article  Google Scholar 

  • Sarasvarthy SD, Dew N, Velamuri SR, Venkataraman S (2003) Three views of entrepreneurship opportunity. In: Acs ZJ, Audretsch DB (eds) Handbook of entrepreneurship research. Springer, New York, pp 141–160

    Google Scholar 

  • Serrie H (1998) Immigrant entrepreneurship, ethnic networks and family dynamics. Rev Anthropol 27:213–223

    Article  Google Scholar 

  • Shane S (2012) Reflections on the 2010 AMR decade award: delivering on the promise of entrepreneurship as a field of research. Acad Manag Rev 37(1):10–20

    Article  Google Scholar 

  • Sheriff M, Muffatto M (2015) The present state of entrepreneurship ecosystems in selected countries in Africa. Afr J Econ Manag Stud 6(1):17–54

    Google Scholar 

  • Shirokova G, McDougall-Covin P (2012) The role of social networks and institutions in the internationalization of Russian entrepreneurial firms: do they matter? J Int Entrep 10(3):177–199

    Article  Google Scholar 

  • Sorensen OJ (2003) Barriers to and opportunities for innovation in developing countries: the case of Ghana. In: Muchie M, Gammeltoft P, Lundvall BA (eds) Putting African first: the making of African innovation systems. Aalborg University Press, Aalborg, pp 287–304

    Google Scholar 

  • Steyaert C (2007) Entrepreneuring’ as a conceptual attractor? A review of process theories in 20 years of entrepreneurship studies. Entrep Reg Dev 19(6):453–477

    Article  Google Scholar 

  • Storey DJ (1999) Six steps to heaven: evaluating the impact of public policies to support small business in developed economies. In: Sexton DL, Landstrom H (eds) Handbook of entrepreneurship. Blackwell, Oxford, pp 176–194

    Google Scholar 

  • Terjesen S, Hessels J, Li D (2013) Comparative international entrepreneurship: a review and research agenda. J Manag 20(10):1–46

    Google Scholar 

  • Thurik R, Wennekers S (2001) A note on entrepreneurship, small business and economic growth. Erasmus Research Institute Management Report Series, Rotterdam

    Google Scholar 

  • Vahlne JE, Ivarsson I, Johanson J (2011) The tortuous road to globalization for Volvo's heavy truck business: extending the scope of the Uppsala model. Int Bus Rev 20(1):1–14

    Article  Google Scholar 

  • Vahlne JE, Johanson J (2013) The Uppsala model on evolution of the multinational business enterprise—from internalization to coordination of networks. Int Mark Rev 30(3):189–210

  • Valliere D (2015) The comparative state of entrepreneurial intent in Cameroon. J Entrep Emerg Econ 7(3):241–255

    Google Scholar 

  • Valliere D, Peterson R (2009) Entrepreneurship and economic growth: evidence from emerging and developed countries. Entrep Reg Dev 21(5/6):459–480

    Article  Google Scholar 

  • Van Stel A, Thurik R (2004) The Effect of Entrepreneurship on National Growth: An Analysis using the GEM Database (no#3404). Max Planck Institute for Research into economic systems, Jena

    Google Scholar 

  • Venables AJ (2010) Economic geography and African development. Pap Reg Sci 89(3):469–483

    Article  Google Scholar 

  • Welter F, Smallbone D (2011) Institutional perspectives on entrepreneurial behavior in challenging environments. J Small Bus Manag 49(1):107–125

    Article  Google Scholar 

  • World Population Review (2013) Africa Population 2013. Available at: http://worldpopulationreview.com/africa- population-2013 (Accessed 20 Dec 2015)

  • Wright M, Filatotchev I, Hoskisson RE, Peng MW (2005) Guest editor’s introduction: strategy research in emerging economies: challenging the conventional wisdom. J Manag Stud 42(1):1–33

    Article  Google Scholar 

  • Zahra SA (2005) A theory of international new ventures: a decade of research. J Int Bus Stud 36(1):20–28

    Article  Google Scholar 

  • Zahra SA, Ireland RD, Hitt MA (2000) International expansion by new venture firms: international diversity, mode of market entry, technological learning, and performance. Acad Manag J 43(5):925–950

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Princeton University & Montpellier Business School, Avenue des Moulins, Montpellier, France

    Léo-Paul Dana

  2. Latrobe University, Melbourne, Australia

    Vanessa Ratten

Authors
  1. Léo-Paul Dana
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Vanessa Ratten
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Léo-Paul Dana.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Dana, LP., Ratten, V. International entrepreneurship in resource-rich landlocked African countries. J Int Entrep 15, 416–435 (2017). https://doi.org/10.1007/s10843-017-0211-6

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10843-017-0211-6

Keywords

Search

Navigation