Toward a Strategic Management Perspective on Local Content in African Extractives

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Toward a Strategic Management Perspective on Local Content in African Extractives

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dc.contributor.author Hansen, Michael Wendelboe
dc.date.accessioned 2017-12-11T12:52:02Z
dc.date.available 2017-12-11T12:52:02Z
dc.date.issued 2017-12-11
dc.identifier.uri http://hdl.handle.net/10398/9564
dc.description.abstract Local content requirements - i.e. government backed requirements that extractive MNCs must procure inputs locally - are fast becoming a major issue in MNC-host country bargaining in Africa. Across Africa, governments are seeking to mobilize MNCs for sustainable development through increasingly stringent local content requirements. As a result, extractive MNCs are facing a rapidly evolving strategic field, the management of which may have immense implications for their investment decisions, profitability and efficiency. While a vibrant and dynamic literature on local content in Africa is emerging, this literature is predominantly informed by economic and political perspectives, and strategic management perspectives are virtually absent. This is problematic as one of the main reasons why local content interventions in Africa fail to produce the expected results is that they often are based on an inadequate understanding of MNC strategy and interests. Hence, the aim of this paper is to characterize and conceptually develop the strategic management perspective on local content. The paper outlines generic strategies that MNCs may adopt to balance the often conflicting pressures for local content and global efficiency. It is concluded that by better aligning local content intervention with MNC strategy and interests, the likelihood of positive development outcomes will be greatly enhanced. en_US
dc.format.extent 24 en_US
dc.language eng en_US
dc.title Toward a Strategic Management Perspective on Local Content in African Extractives en_US
dc.type cp en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Centre for Business and Development Studies en_US
dc.contributor.departmentshort CBDS en_US
dc.contributor.departmentuk Centre for Business and Development Studies en_US
dc.contributor.departmentukshort CBDS en_US
dc.description.notes Paper presented to 2017 EIBA conference in Milan, 14-17 December en_US
dc.publisher.city Frederiksberg en_US
dc.publisher.year 2017 en_US


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