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The Garment Industry in its Economic, Political and Social ContextJeppesen, Søren; Bezuidenhout, Andries (Frederiksberg, 2019)[More information][Less information]
Abstract: This special CBDS Working Paper originates from a longer-term collaboration between Associate Professors Søren Jeppesen, CBS and Andries Bezuidenhout, UFH. The collaboration started more than 10 years ago and will have its main output with the forthcoming book (preliminarily) titled, ‘Enclave Development: State, Market, And Society in Lesotho, South Africa and Swaziland’s Garment Manufacturing Industries’. The collaboration has benefitted from primary and secondary data from two research projects and support from our institutions. The first project was part of a large research project, titled ‘The Outsourcing for Development project’, based at CBS and Aalborg University, Denmark. The project was funded by the Danish Development Research Council and investigated different aspects of the contemporary situation among firms from developing countries in an era of globalisation and outsourcing of production from North to South. As part of a sub-study on ‘CSR, Development and Outsourcing’ we undertook a comparative investigation of the impact of codes of conduct on working conditions in garment factories in different countries in Southern Africa. The second project was part of a large comparative study on the role of Labour movements in Southern Africa, anchored at the Sociology at Work Unit, Witwatersrand University, South Africa. The project also supported the comparative study of the impact on codes of conduct, with funding from the Norwegian Development Agency (Norad). Over the years, our respective institutions (Department of Intercultural Communication and Management, later renamed Department of Management, Society and Communication (MSC) at CBS and Sociology of Work, Wits University, Department of Sociology, University of Pretoria and lastly Department of Development Studies (DDS), University of Fort Hare (UFH)) have supported us collegially and with funds for travel, student assistance and more. We highly appreciate this. During the project, we have benefitted from the work of numerous student and research assistants. They include; Lasse B. Jensen, Alvin P. Ljosa, Sameer Azizi, Amanda Haarmaan, and Zartashia Ahmed (CBS), and Hamadziripi Tamukamoyo, Wits University (and other SA assistants). We would like to thank all for the great help. URI: http://hdl.handle.net/10398/9735 Files in this item: 1
Country Background Lesotho 04.06.19.pdf (1.249Mb) -
Chandran, V G R; Rasiah, Rajah; Wad, Peter (Frederiksberg, 2009)[More information][Less information]
Abstract: The study of innovation and technological upgrading experienced a significant interest in the academic literature, especially within the developing countries (Lall, 1998, 2001; Kim and Nelson, 2000; Ariffin and Figueiredo, 2004). The lack of involvement by developing countries in radical innovative capabilities (Rasiah, 1994; Hobday, 2005) and the interest of scholars in learning technological capability building and technological catch up processes has directed researchers to analyze various mechanisms or drivers that contribute to technological upgrading, especially in developing countries, more so in the manufacturing sector. This study aims to investigate the R&D activities and the internationalization of these activities undertaken by foreign firms within the Malaysian manufacturing sector. The study aims to provide answers to the following questions: 1. What is the status of the systems of innovation within the Malaysian manufacturing sector? 2. What is the role played by the agents of innovation, in particular TNCs or MNCs, in relation to R&D activities and its internationalization? and, 3. How is the Malaysian manufacturing (local and foreign) technological and R&D progress to date? This study confirms that the Malaysian manufacturing systems of innovation is weakly positioned but shows limited evidence of process innovation and not product innovation. However, evidence of innovation differs among states and sectors owing to differences in the systems of innovation. Although, Malaysia has not been chosen as a site for offshoring or outsorcing of R&D activities to a significant degree, it is found that one very important driver of innovation is the central role that multinational enterprises play in the Malaysian manufacturing systems of innovation. Process innovation is conducted by foreign subsidiaries and is on the rise in key the electronics industry. It is also found that technological learning by local firms is mainly through linkages, sub-contracting and technological transfer. URI: http://hdl.handle.net/10398/7972 Files in this item: 1
MSI_and_internationalization_of_R&D.pdf (282.8Kb) -
(Re) Integrating the strategic management perspective in the theory of multinational corporationsHoenen, Anne Kristin; Hansen, Michael W. (Frederiksberg, 2009)[More information][Less information]
Abstract: The contemporary literature on foreign direct investment (FDI) has to some extent ’forgotten’ a key insight of the early FDI literature, namely that FDI to a large extent is driven by strategic interaction of firms in oligopolistic industries. Instead the FDI literature has focused, at first on FDI as a way of generating efficiency in cross border transactions, and later on FDI as a way to effectively leverage and build capabilities across borders. These efficiency and capabilities perspectives on FDI may have been adequate in a situation where global competition still was in its infancy. However, in recent years, we have seen the emergence of truly global oligopolies, e.g. in electronics, aerospace, aviation, software, steel, automotive, construction, brewing, etc. These oligopolistic industries have been consolidated through massive waves of cross border M&As in the second half of the 90s and from 2003-2007. We argue that in such industries it is not adequate to analyze FDI only in terms of efficiency or resource leverage; FDI must also be understood in terms of its contribution to the global strategic positioning of the investing firm. The paper seeks to re-discover’ the oligopolistic competition perspective, drawing on the early insights of the Hymer-Kindleberger-Caves tradition as well as on the recent Strategic Management literature, but bringing these into the context of globalization. It is argued that global strategic interaction in oligopolistic industries is manifest in well known FDI phenomena such as follow-the-leader, client follower, and first-mover. While the paper attempts no formal testing, evidence indicative of oligopolistic competition motivated FDI is presented, e.g. from the recent cross border M&A waves and from the recent surge of FDI in emerging markets. URI: http://hdl.handle.net/10398/7956 Files in this item: 1
WPs-2009_no.10.pdf (193.7Kb) -
Towards a developing country firm perspectiveSchaumburg-Müller, Henrik; Pottenger, Eugene; Hansen, Michael W. (København, 2007)[More information][Less information]
Abstract: Changes of the global economy have led to a much deeper integration of firms from developing countries. Multinational corporations are increasingly using offshore-outsourcing to maintain competitiveness and market shares. While the implications of this trend has been studied from the point of view of the multinational firm and its home economy, far less attention has been paid to the developing country firm participating in the outsourcing arrangement and its strategic options. From this point of view this paper reviews the outsourcing literature and identifies theoretical contributions that can be employed to build a platform for analyzing the strategic implications of outsourcing for local firms in developing countries. URI: http://hdl.handle.net/10398/6758 Files in this item: 1
wps-2007_no.4.pdf (220.9Kb) -
Theory and evidenceHansen, Michael W. (København, 2008)[More information][Less information]
Abstract: Indian outward foreign direct investment (FDI) has risen dramatically in recent years. This reflects that Indian multinational corporations (MNCs) are asserting an increasingly important role in the global economy, not only as resource and market seekers in less developed countries, but increasingly competing on par with western MNCs in their home markets. When we confront the Indian outward FDI path with theories of outward foreign direct investment from developing countries, a number of puzzles and anomalies becomes evident: Normally, we would expect strong inward FDI performance to precede strong outward FDI performance, however in India the rise in outward FDI has been almost simultaneous with the rise in inward FDI; Normally, we would expect developing country MNCs to invest in like or less developed countries, however Indian MNCs have in a rapid sequence moved into developed economies; Normally, we would expect developing country MNCs to be operating with less advanced technologies and business models, however Indian MNCs have moved directly into FDI in advanced sectors and technologies. This paper will offer a number of explanations for the unique Indian outward investment path, explanations that take their point of departure in the idiosyncratic nature of Indian industrialization. URI: http://hdl.handle.net/10398/6754 Files in this item: 1
wps-2007_no.8.pdf (248.0Kb) -
Entry Barriers for Food Processors to Supermarkets in KenyaThomsen, Lotte; McCormick, Dorothy; Kamau, Paul (Frederiksberg, 2017)[More information][Less information]
Abstract: This paper addresses the domestically owned food-processing industry in Kenya and explores the sale of processed food products to the domestic ‘modern’ retail sector. Food processing represents a step up in the value chain compared to fresh food production and may thus, at least potentially, lead to economic development. In focusing on food-processing businesses and on domestic rather than global market sales, this paper distinguishes itself from studies on Sub-Saharan African suppliers to global value chains. The potential importance of domestic ‘modern’ retail formats to Kenyan food suppliers is underlined by the fact that after South Africa, Kenya is Africa’s second largest market for ‘formal’ retail, mostly because of the growing Kenyan middle class (EIU, 2013; Business Daily, 2015). What is not clear, however, is the extent to which retailers in Kenya currently source processed food products locally and thus whether food processing – as opposed to fresh food exports – retains importance for suppliers as well as for the Kenyan economy. This paper aims to contribute knowledge to this subject on which very little research exists. Based on fieldwork, the paper shows that a variety of entry barriers exist for Kenyan food processors that attempt to supply the emerging ‘modern’ retail sector domestically. The paper also shows how the requirements that processors must meet, especially for larger domestic supermarkets, tend to resemble those commonly described in the export sector, calling into question the extent to which domestic retail is a viable alternative in the longer run. URI: http://hdl.handle.net/10398/9525 Files in this item: 1
cbds_working_paper_1_2017_250917.pdf (1.330Mb) -
Chong, Sabrina; Wad, Peter (København, 2008)[More information][Less information]
Abstract: Offshore outsourcing of business activities from the Global North to the Global South does not only relocate investments and jobs, but has also brought about new business demands on suppliers activities and their social and environmental impact. The article explores whether, how and why offshore outsourcing transactions between foreign firms and Malaysian firms affect the upgrading of the CSR activities of Malaysia incorporated firms, taking the particular institutional context of Malaysia into consideration. The focus is on recipient country vendors, contract manufacturers or subcontractors and their reception of and strategising about corporate social responsibility. The findings of the study indicate, firstly, that the amount of foreign (sub)contracting influences the CSR strategising of domestic firms while the global value chain position is only conditioning the offshore outsourcing portfolio. Secondly, both the corporate governance of Malaysian affiliate and the Malaysian government play an important role shaping the perception, rhetoric and organisation of CSR activities by firms in Malaysia with a domestic value chain position. Hence, firms in Malaysia are squeezed by international business linkages and the local institutional context. URI: http://hdl.handle.net/10398/6757 Files in this item: 1
wps-2007_no.7.pdf (420.9Kb) -
The Case of Roshan, An Afghan Telecommunication CompanyAzizi, Sameer A. (Frederiksberg, 2012)[More information][Less information]
Abstract: CSR is a rising phenomena in Afghanistan – but why are firms concerned about CSR in a least-developed context such as Afghanistan, and what are the strategic benefits? This paper is one of the first to explore these CSR issues in a least-developed country. It does so by focusing on CSR in the Afghan telecommunication sector and in particular on ‘Roshan’ as a case company. The findings of this paper are two-folded. First, it provides an overview of the CSR practices in the telecommunication sector in Afghanistan. Second, it focuses on one case and explains whether Roshan can gain strategic advantages through CSR in Afghanistan, and if so which and how these strategic benefits are gained. The paper shows that the developmental challenges of Afghanistan are the key explanations for why companies engage in CSR. Roshan has engaged in proactive CSR to overcome the contextual barriers for growth. Based on an analysis of five CSR projects, it can be assessed that Roshan enhances its competitive advantage through CSR in internal, external, and wider- society levels. It is analyzed that Roshan influences its competitive context both from inside-out and out-side in dimensions, and that the CSR projects could all live up to the strategic CSR criteria drawn from the academic work of Porter and Kramer, Burke and Logsdon and Blowfield. Finally, the paper discusses how in a context of a weak state and civil society, and massive developmental challenges, CSR is not a matter of an ‘add-on choice’, but is based on a ‘license to operate’ motivation, where businesses have free room for maneuvering CSR towards their strategic priorities and business goals. Whether this creates a ‘shared value’ for both business and in particularly for the society is however still questionable. URI: http://hdl.handle.net/10398/8444 Files in this item: 1
Azizi_CBDS_nr _1_2012.pdf (704.0Kb) -
Schaumburg-Müller, Henrik (København, 2007)[More information][Less information]
Abstract: This paper looks at the export developments of Vietnamese garment producers after the Multi-Fibre Arrangement was removed by the beginning of 2005. It uses a Global Value Chain approach and analyses what happens when there is a major change in the institutional context, in this case shift in the basic institutional international trade arrangements. The focus is on Vietnam and the Vietnamese garment suppliers looking at how they have performed after the removal of the quota systems and what kind of strategies they have pursued. The results show that Vietnamese suppliers have been able to compete internationally after the quota removals although many of them appear to be locked in the low value end of the chain. The data show, however, that they are not only able to compete and grow but also to change between buyers and markets, which provides them with the flexibility of shifting between chains. URI: http://hdl.handle.net/10398/6752 Files in this item: 1
wps-2007_no.3_hsm.pdf (97.40Kb) -
Hansen, Michael W.; Gwozdz, Wencke (Frederiksberg, 2013)[More information][Less information]
Abstract: MNCs are increasingly investing in developing countries to be part of rapid market growth, to enhance the efficiency of their value chains, and to access abundant resources and talent. The potential gains are high, however so are the risks. Some developing country subsidiaries become top performers in terms of growth and revenue and assume key roles in the MNCs’ global value chains, but other subsidiaries fail to meet expectations, struggling to produce positive returns and frequently experiencing stop of operations. While the issue of subsidiary performance should be at the heart of any International Business (IB) enquiry into MNC activity in developing countries, surprisingly little research has examined this issue. Based on a unique data base of approx. 800 MNC subsidiaries established between 1969 and 2008, this paper examines the evolution in subsidiary performance and the factors influencing this performance. The analysis reveals that MNC subsidiaries in developing countries have improved enormously on their performance since the early investments in the 1960s and 70s, but also that the risks of failure remain high. The paper moves on to analyze factors shaping subsidiary performance. Inspired by received IB theory, it is hypothesized that subsidiary performance is essentially shaped by five dimensions: location, industry, MNC capabilities, subsidiary role, and entry mode. A variance component analysis is employed to identify the sources of subsidiary performance. Especially MNC capabilities and subsidiary role appear to explain variance in performance, while location and industry factors appear to have less explanatory power. This suggests that while locational and industry factors affect subsidiary performance, strong MNC capabilities and appropriate strategy can make MNCs succeed regardless of location and industry. The findings of the study have important implications for the IB literature, for managers and for policy aimed at promoting FDI in developing countries. URI: http://hdl.handle.net/10398/8829 Files in this item: 1
Hansen_Gwozdz.pdf (1.109Mb)
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