An institutional framework for expanding into Africa: a focus on global multinational companies
- Authors: Dipha, Lazola
- Date: 2018
- Subjects: International business enterprises -- Management , Globalization -- Economic aspects
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/29984 , vital:30804
- Description: Global multinational companies (MNCs) continue to face unique challenges in expanding into African emerging markets (AEMs). The biggest contributor to this is their lack of understanding and unwillingness to embrace the exceptional dynamics that exist in these countries, which has resulted in the majority of them defaulting to execute their own country’s domestic market strategies, resulting in failure to realise sustainable businesses. A misaligned and inappropriate strategy will fail dismally in terms of long-term sustainability of businesses. Urban & Hwindingwi (2016) took a diverse view in evaluating emerging markets, which will also be implemented in this study. They argued that “[they] see these features of emerging markets as symptoms of underlying market structures that share common, important and persistent differences from those in developed economies. Emerging markets reflect those transactional arenas where buyers and sellers are not easily or efficiently able to come together. The institutional voids make a market ‘emerging’ and are a prime source of the higher transaction costs and operating challenges in these markets”. “Market structures are the products of idiosyncratic historical, political, legal, economic and cultural forces within any country. All emerging markets feature insti-tutional voids, however, although the particular combination and severity of these voids varies from market to market”. In the previous years, corporate leaders and investors globally have pinned their hopes on the African growing story of promise becoming a reality. With a youthful, urbanising inhabitants, plentiful natural resources and a rising middle class; it looks like the continent has the correct components required for long-standing growth, possibly outshining the so-called tiger economies of East-Asia a generation ago. According to the McKinsey Global Institute titled Lions on the Move 2010 report; they forecasted consumer spending within the continent to grow by 40% and move GDPs by $1 trillion between 2008 to 2020. However, there are plenty multinationals that have become disheartened in their pursuit of operating in Africa.
- Full Text:
- Date Issued: 2018
- Authors: Dipha, Lazola
- Date: 2018
- Subjects: International business enterprises -- Management , Globalization -- Economic aspects
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/29984 , vital:30804
- Description: Global multinational companies (MNCs) continue to face unique challenges in expanding into African emerging markets (AEMs). The biggest contributor to this is their lack of understanding and unwillingness to embrace the exceptional dynamics that exist in these countries, which has resulted in the majority of them defaulting to execute their own country’s domestic market strategies, resulting in failure to realise sustainable businesses. A misaligned and inappropriate strategy will fail dismally in terms of long-term sustainability of businesses. Urban & Hwindingwi (2016) took a diverse view in evaluating emerging markets, which will also be implemented in this study. They argued that “[they] see these features of emerging markets as symptoms of underlying market structures that share common, important and persistent differences from those in developed economies. Emerging markets reflect those transactional arenas where buyers and sellers are not easily or efficiently able to come together. The institutional voids make a market ‘emerging’ and are a prime source of the higher transaction costs and operating challenges in these markets”. “Market structures are the products of idiosyncratic historical, political, legal, economic and cultural forces within any country. All emerging markets feature insti-tutional voids, however, although the particular combination and severity of these voids varies from market to market”. In the previous years, corporate leaders and investors globally have pinned their hopes on the African growing story of promise becoming a reality. With a youthful, urbanising inhabitants, plentiful natural resources and a rising middle class; it looks like the continent has the correct components required for long-standing growth, possibly outshining the so-called tiger economies of East-Asia a generation ago. According to the McKinsey Global Institute titled Lions on the Move 2010 report; they forecasted consumer spending within the continent to grow by 40% and move GDPs by $1 trillion between 2008 to 2020. However, there are plenty multinationals that have become disheartened in their pursuit of operating in Africa.
- Full Text:
- Date Issued: 2018
A study on the cultural adjustment of the domestic partners of German expatriates in the Nelson Mandela Bay automotive industry
- Authors: Gouws, Stephanie
- Date: 2011
- Subjects: International business enterprises -- Management , International business enterprises -- Personnel management , International business enterprises -- Management -- Cross-cultural studies , International business enterprises -- Management -- Social aspects , Employment in foreign countries , Intercultural communication , Corporations, Foreign
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:16134 , http://hdl.handle.net/10948/1540 , International business enterprises -- Management , International business enterprises -- Personnel management , International business enterprises -- Management -- Cross-cultural studies , International business enterprises -- Management -- Social aspects , Employment in foreign countries , Intercultural communication , Corporations, Foreign
- Description: This study explores the cultural adjustment of the domestic partners of German expatriates working in the Nelson Mandela Bay automotive industry of South Africa. The data was collected by distributing pre-interview questionnaires to the participants and conducting in-depth interviews with them. Grounded theory was used in the data collection and analysis and an auto-ethnographic approach was employed, allowing for reflexivity. The findings suggest that the expatriated domestic partners did not necessarily experience much difficulty in adjusting to South African culture as they did, for example, adjusting to not being able to work for the duration of their stay. The research has also shown that the unmarried domestic partners of expatriate employees are at a disadvantage compared to their married counterparts; receiving less assistance from the companies of their partners. Based on the findings, it has been recommended that companies refine and streamline the assistance they offer to the domestic partners of their expatriate employees, providing all domestic partners with the same pre-departure training and entitling them to the same benefits.
- Full Text:
- Date Issued: 2011
- Authors: Gouws, Stephanie
- Date: 2011
- Subjects: International business enterprises -- Management , International business enterprises -- Personnel management , International business enterprises -- Management -- Cross-cultural studies , International business enterprises -- Management -- Social aspects , Employment in foreign countries , Intercultural communication , Corporations, Foreign
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:16134 , http://hdl.handle.net/10948/1540 , International business enterprises -- Management , International business enterprises -- Personnel management , International business enterprises -- Management -- Cross-cultural studies , International business enterprises -- Management -- Social aspects , Employment in foreign countries , Intercultural communication , Corporations, Foreign
- Description: This study explores the cultural adjustment of the domestic partners of German expatriates working in the Nelson Mandela Bay automotive industry of South Africa. The data was collected by distributing pre-interview questionnaires to the participants and conducting in-depth interviews with them. Grounded theory was used in the data collection and analysis and an auto-ethnographic approach was employed, allowing for reflexivity. The findings suggest that the expatriated domestic partners did not necessarily experience much difficulty in adjusting to South African culture as they did, for example, adjusting to not being able to work for the duration of their stay. The research has also shown that the unmarried domestic partners of expatriate employees are at a disadvantage compared to their married counterparts; receiving less assistance from the companies of their partners. Based on the findings, it has been recommended that companies refine and streamline the assistance they offer to the domestic partners of their expatriate employees, providing all domestic partners with the same pre-departure training and entitling them to the same benefits.
- Full Text:
- Date Issued: 2011
A development of solutions to the problems experienced by expatriates in multinational corporations
- Authors: Faas, Pamella Misiwe
- Date: 2005
- Subjects: International business enterprises -- Management , International business enterprises -- Personnel management , Employment in foreign countries
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8548 , http://hdl.handle.net/10948/424 , International business enterprises -- Management , International business enterprises -- Personnel management , Employment in foreign countries
- Description: The objective of this study is to investigate the reasons for international assignments ending in failure, using the current models of expatriates’ premature withdrawal decisions, so as develop solutions to those problems. Studies of expatriate failure and effects of expatriate satisfaction on organisational performance have been conducted but most of them in the overseas countries. These studies revealed that the practice of employing expatriates is a strategic move on the part of the multinational corporation to increase the international experience and knowledge base of present and future managers. Even though studies on strategies that companies can use have been done extensively, research still shows that a large number of overseas assignments end in failure. Failure being described as the premature return to the home country, not being able to adjust in the host company or country and immediately living the company upon return from the assignment. It is for this reason that in the researcher decided to investigate what could be the reasons that cause the expatriates to return home early. The research will be of importance to South Africa firstly, as organisations that are operating globally will copy the business systems and processes practiced in developed countries, and later bring knowledge, skills and expertise that will help in boosting the economy of the country. Secondly, the organisation's Human Resource Management will develop practices to ensure the successful and effective retention of expertise. Expatriate failure will be reduced and the process of repatriating expatriates will be meaningful. Individuals assigned will not find it difficult to adjust in the parent company, and later take the skills they have learnt to another company. Thirdly, managers generally will understand the challenges that accompany expatriation, and be able to meet those challenges. The research becomes an investigative research as one tries to establish if there is concurrence or deviation with the current models. A sample is drawn from a list of international companies that have operations overseas. The researcher has tried to get responses from companies in all provinces of South Africa so that the sample can be fully representative. The questionnaire is used as it is a common instrument for observing data beyond the physical reach of the researcher. The questions were selected to address each of the factors affecting decisions to withdraw from the country of assignment. Responses from the expatriates have helped to develop a new model that encompasses all the factors that cause the expatriates to leave the assignment early as well to develop solutions to the problems. This will not only help the multinational corporations to save on costs, but will also ensure that the company and the expatriate benefit from international assignment.
- Full Text:
- Date Issued: 2005
- Authors: Faas, Pamella Misiwe
- Date: 2005
- Subjects: International business enterprises -- Management , International business enterprises -- Personnel management , Employment in foreign countries
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8548 , http://hdl.handle.net/10948/424 , International business enterprises -- Management , International business enterprises -- Personnel management , Employment in foreign countries
- Description: The objective of this study is to investigate the reasons for international assignments ending in failure, using the current models of expatriates’ premature withdrawal decisions, so as develop solutions to those problems. Studies of expatriate failure and effects of expatriate satisfaction on organisational performance have been conducted but most of them in the overseas countries. These studies revealed that the practice of employing expatriates is a strategic move on the part of the multinational corporation to increase the international experience and knowledge base of present and future managers. Even though studies on strategies that companies can use have been done extensively, research still shows that a large number of overseas assignments end in failure. Failure being described as the premature return to the home country, not being able to adjust in the host company or country and immediately living the company upon return from the assignment. It is for this reason that in the researcher decided to investigate what could be the reasons that cause the expatriates to return home early. The research will be of importance to South Africa firstly, as organisations that are operating globally will copy the business systems and processes practiced in developed countries, and later bring knowledge, skills and expertise that will help in boosting the economy of the country. Secondly, the organisation's Human Resource Management will develop practices to ensure the successful and effective retention of expertise. Expatriate failure will be reduced and the process of repatriating expatriates will be meaningful. Individuals assigned will not find it difficult to adjust in the parent company, and later take the skills they have learnt to another company. Thirdly, managers generally will understand the challenges that accompany expatriation, and be able to meet those challenges. The research becomes an investigative research as one tries to establish if there is concurrence or deviation with the current models. A sample is drawn from a list of international companies that have operations overseas. The researcher has tried to get responses from companies in all provinces of South Africa so that the sample can be fully representative. The questionnaire is used as it is a common instrument for observing data beyond the physical reach of the researcher. The questions were selected to address each of the factors affecting decisions to withdraw from the country of assignment. Responses from the expatriates have helped to develop a new model that encompasses all the factors that cause the expatriates to leave the assignment early as well to develop solutions to the problems. This will not only help the multinational corporations to save on costs, but will also ensure that the company and the expatriate benefit from international assignment.
- Full Text:
- Date Issued: 2005
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