In this paper, we employed a blend of multiple and historical case study design, and a mix of institutional, behavioral, resource-based, and multinational theories, to examine the nature of... Show more In this paper, we employed a blend of multiple and historical case study design, and a mix of institutional, behavioral, resource-based, and multinational theories, to examine the nature of multinational companies’ (MNC) engagements in local economic development and capital export practices in an African context. Evidence from our Nigerian case analysis (FrieslandCampina, Nigerian Breweries Plc. and Dangote Cement) confrms the proposition that, faced with a similar degree of uncertainty and constrained institutional environment and laying claims to difering sources of competitive advantage, both local and foreign MNCs would repatriate profts and limit exposures to local value chains (LVCs) mainly as a strategy for mitigating country risks and preserving corporate value. Such limited exposures detach MNCs, especially the foreign ones, from the LVCs, and by doing so push them to deeper reliance on the global value chains (GVCs). Linking local businesses to the GVCs is central in the inclusive development (ID) debate essentially because it allows for the redistribution of economic benefts, helps in building a complementary (rather than competitive) relationship between MNCs and local businesses, and facilitates local businesses’ access to international markets. We, therefore, recommend that in pursuit of the inclusive and sustainable development projects in Africa, industrial policies need to be tailored toward stabilizing the policy environment, protecting investments from risk of expropriation, and incentivizing MNCs’ participation in the LVCs. Show less
Using the case of Nigeria's Dangote Group and an exploratory research technique, we critique CSR practices in a developing country context based on a three‐pillar model—traditional CSR, strategic... Show moreUsing the case of Nigeria's Dangote Group and an exploratory research technique, we critique CSR practices in a developing country context based on a three‐pillar model—traditional CSR, strategic CSR and strategic business engagements. Our paper makes a unique contribution by revealing how a company can transform its strategic CSR into strategic business engagements that permit it to circumvent public procurement laws and secure public contracts at non‐competitive terms. We show how, in weak institutional and regulatory contexts, strategic CSR could be turned to a tool for rent extraction and profit maximization. We advocate for regulatory measures that impose ex ante and ex post limits on the extent to which firms can go in integrating CSR into their normal business operations. Based on the outcomes from this important African case study, we illustrate and propose the strategic business engagement model as a new framework for analysing the social benefits of strategic CSR practices in developing countries. Show less
Nigeria is arguably the largest importer of dairy products in Africa. Available statistics shows that up to 98% of the total dairy products consumed in the country are imported; and that about 75%... Show moreNigeria is arguably the largest importer of dairy products in Africa. Available statistics shows that up to 98% of the total dairy products consumed in the country are imported; and that about 75% of the entire dairy market is controlled by FrieslandCampina WAMCO (FCW). The purpose of this study is to examine the basis for the prevailing import orientation in the dairy industry since 1973. Is the orientation traceable to operations of multinational companies or the institutional and governance challenges in the country? Using triangulated data collected from FCW official reports and other relevant sources, and a content analytical technique, the study finds that the problem in the industry is multifaceted. Central to the challenges are persistent institutional and infrastructural defects, as well as faulty integration designs adopted by FCW. Based on this, the paper recommends that reversing the current trend requires government’s policies that dis-incentivizes importation. However, such policies canwork only when the right atmosphere for cattle farming and local dairy production is put in place. Show less
This paper critiques the emergence of Dangote Cement as the dominant player in cement manufacturing in Nigeria. It argues that the changed economic environment General Obasanjo met when he became... Show moreThis paper critiques the emergence of Dangote Cement as the dominant player in cement manufacturing in Nigeria. It argues that the changed economic environment General Obasanjo met when he became president of Nigeria for a second time in 1999 made it difficult for him to continue the nationalisation policies and the expansion of government involvement in several spheres of economic activity that he helped to promote in the 1970s. The realisation that this strategy, which created numerous crony capitalists, was unsustainable resulted in Obasanjo allying with Dangote and promulgating the Backward Integration Programme (BIP) for the local cement industry. This made it possible for Dangote to risk aggressive investment in the capital-intensive cement production business. This strategy achieved public good by rapidly making Nigeria, an oil rent- and import-dependent economy with enormous limestone reserves, self-sufficient in cement production. Show less
This paper critiques the emergence of Dangote Cement as the dominant player in cement manufacturing in Nigeria. It argues that the changed economic environment General Obasanjo met when he became... Show moreThis paper critiques the emergence of Dangote Cement as the dominant player in cement manufacturing in Nigeria. It argues that the changed economic environment General Obasanjo met when he became president of Nigeria for a second time in 1999 made it difficult for him to continue the nationalisation policies and the expansion of government involvement in several spheres of economic activity that he helped to promote in the 1970s. The realisation that this strategy, which created numerous crony capitalists, was unsustainable resulted in Obasanjo allying with Dangote and promulgating the Backward Integration Programme (BIP) for the local cement industry. This made it possible for Dangote to risk aggressive investment in the capital-intensive cement production business. This strategy achieved public good by rapidly making Nigeria, an oil rent- and import-dependent economy with enormous limestone reserves, self-sufficient in cement production. Show less
Why would the citizens of an oil-producing state continually resist reform-induced petrol price increases, even when subsidy payments are proved to be a serious threat to the capacity of the state... Show moreWhy would the citizens of an oil-producing state continually resist reform-induced petrol price increases, even when subsidy payments are proved to be a serious threat to the capacity of the state to deliver its core constitutional mandates? In this paper, we tackle this question by contending that the difficulty in petrol subsidy implementation in a country like Nigeria has more to do with the clear lack of state legitimacy and public trust, and the recorded cases of political instability entrenched by forced attempts at reforms. By contextualizing the reform efforts in Nigeria within the framework of the relationship between state legitimacy and reforms, we are able to provide valid insights to a broader understanding of the “whys” of public resistance to the authority of the state to enforce reform. The Nigerian case, as revealed in this article, provides evidence of a shift in paradigm from the conventional and dominant Weberian emphasis of state legitimacy around the nature and sources of state authorities to a more functional context of citizens’ perception of the governance process as a source of legitimacy. Show less
This paper critiques the rise of Dangote Cement plc to become the dominant player in the Nigerian cement industry. Although the close relationship between the company's founder, Aliko Dangote, and... Show moreThis paper critiques the rise of Dangote Cement plc to become the dominant player in the Nigerian cement industry. Although the close relationship between the company's founder, Aliko Dangote, and subsequent Nigerian governments has been an important factor in this success story, we argue that it is not the only explanatory variable. Dangote's entrepreneurial skills and understanding of the Nigerian political and economic environment enabled him to proactively predict and exploit the rapid increase in demand for cement in the country. The reluctance of most multinational cement companies to increase their investments in Nigeria - a consequence of the ever increasing international scrutiny of business ethics especially in corruption prone countries - also helped reduce the competition and investment risks for Dangote Cement. Show less
