Diaspora entrepreneurs’ push and pull institutional factors for investing in Africa: Insights from African returnees from the United Kingdom

Nyame-Asiamah, Frank; Amoako, Isaac Oduro; Amankwah‐Amoah, Joseph; Debrah, Yaw A.

doi:10.1016/j.techfore.2019.119876

Cited by 34 publications

(25 citation statements)

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“…These firms classify informal arrangements as the embodiment of social conventions for their trade activities (Boso et al, 2019;Daniel et al, 2018). They see them as symbolic of accepted norms, codes of ethics and personal networks, and they perceive them as representative of shared social values, attitudes and behaviours that shape economic relationships (George et al, 2016;Nyame-Asiamah et al, 2020). Oppong's ( 2019) study of 134 Ghanaian small exporting firms concluded that informal institutions are influencing the way (behaviour) exporting firms adopt when engaging in export trade.…”

Section: Informal Institutions and Export Behaviour In Developing Economiesmentioning

confidence: 99%

Trusting in indigenous institutions: exporting SMEs in Nigeria

Omeihe

Simba

Rae

et al. 2021

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PurposeThe purpose of this article is to develop new insights into the interplay between trust, indigenous institutions and weak/dysfunctional formal institutions using the Nigerian context – a developing country in Western Africa. It advances new understanding on how Nigerian entrepreneurs trust in their indigenous institutions such as family ties, kinship, chieftaincy, religion, cooperatives and trade associations to resolve disputes arising from their exporting activities as opposed to dormant formal institutions in their country.Design/methodology/approachThis exploratory study adopts an interpretive research paradigm, and it utilises a case study strategy. Data collected through observations, archival records and qualitative conversations with 36 exporting Nigerian small and medium-sized enterprises (SMEs) is analysed by utilising a combination of within and cross-case analysis techniques. Doing so enabled an in-depth study of the methods their owner-managers use in order to take advantage of the relationships they established through their long-standing cultural institutions in the place of weak formal institutions in their country.FindingsIndigenous institutions have evolved to replace formalised institutions within the business environment in Nigeria. They have developed to become an alternative and trusted arbiter for solving SMEs' export issues because of weak/dysfunctional formal institutions in the Western African country. The owner-managers of exporting SMEs perceive formal institutions as representing a fragmented system that does not benefit their export businesses.Practical implicationsThe findings demonstrate that there is need for policymakers to consider the role of informal institutions in the Nigerian context. Such an approach is essential given the economic importance and increasing number of SMEs that trade and export their goods through informal structures in Nigeria.Originality/valueThe study indicates that it is not just the void or absence of institutions that exist in a developing country such as Nigeria, but weak/dysfunctional formal institutions have been replaced by culturally embedded informal institutions. Thus, the study provides a new theoretical avenue depicting the concept of trusting in indigenous institutions.

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Section: Informal Institutions and Export Behaviour In Developing Economiesmentioning

confidence: 99%

Trusting in indigenous institutions: exporting SMEs in Nigeria

Omeihe

Simba

Rae

et al. 2021

JSBED

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“…For its part, Western markets can be attractive for investors from developing countries that is proved by the example of the behavior of entrepreneurs from African countries: desperate to overcome the weakness of the formal institutions of the national economy, they form generally successful business communities in Great Britain [16]. Researchers have obtained similar results using the example of Turkey: based on data for 2002-2016.…”

Section: Investment Potential Factors: Methodology Overviewmentioning

confidence: 91%

Socio-cultural and institutional factors of the investment potential of the regions of the Russian Federation

2021

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The article discusses the problem of sustainable development of the regional economy considering the consequences of the 2020 pandemic. The authors make an assumption about the stabilizing effect of the previously accumulated investment potential at the regional level. Regions with high investment potential have a high degree of the regional economy resilience. The object of the study was the dynamics of socio-economic indicators of investment potential in 85 constituent entities of the Russian Federation for the period from 2009 to 2018. To consider the long-term development trend of the region, institutional and sociocultural variables were added to the system of indicators of the regression model. The results of the regression analysis indicate the importance of only one of the tested institutional and social factors – the volume of issued housing mortgage loans. The affordability of housing for the region population can be an important factor in the sustainability of the regional economy and be considered as a key benchmark of the regional investment strategy.

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“…As entrepreneurs or investors often belong to diverse relationships networks and social groups (Hernández-Carrión et al , 2020), migrant entrepreneurs and investors are also encouraged to use their contacts and networks to influence government policies and legislature in favor of open access market for the development of diaspora entrepreneurship. Since diaspora entrepreneurs often rely on informal institutions and social networks to engage in entrepreneurial activities in their countries of origin (Nielsen and Riddle, 2007; Nyame-Asiamah et al , 2020; Rana and Elo, 2017), Haitian diaspora entrepreneurs could use the same strategy to bypass the constraints imposed by the weakness of the formal institutions in order to take advantage of numerous business opportunities. For effective institutional reforms and control of corruption to take place, diaspora entrepreneurs must transform themselves into agents of institutional change capable of rallying consensus to change the rules of the game and help break the cognitive, legal and political obstacles that prevent market-supporting institutions from emerging (see Kuchar, 2016).…”

Section: Discussionmentioning

confidence: 99%

Institutional reforms, control of corruption, and diaspora entrepreneurship: insights and perspectives on America's poorest economy

Mombeuil

Fotiadis

Aimable

2021

JEPP

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PurposeWhile diaspora entrepreneurs remain important sources of capital and innovation, many developing countries are facing serious challenges to tap into these sources because of their weak institutional settings and the endemic and systemic corruption. To this end, this study explores how institutional reforms and control of corruption can influence diaspora entrepreneurship. This study also seeks to provide perspectives on how diaspora entrepreneurs can influence institutional reforms and market policies.Design/methodology/approachTo meet these objectives, qualitative and interpretive research approaches were employed.FindingsUsing responses collected from Haitian diaspora entrepreneurs living in the USA, this paper highlights different attributes of institutional reforms and control of corruption that can influence diaspora entrepreneurship.Practical implicationsBased on these insights, this paper argues that Haitian diaspora entrepreneurs need to play a proactive role as policy entrepreneurs by supporting competent and well-intention political leaders to gain office and by joining forces with local actors to advocate for institutional reforms, market reforms and control of corruption in order to be able to exploit market opportunities. In this respect, further perspectives for diaspora entrepreneurship, limitations and consideration for future research are highlighted.Originality/valueBy collecting insights on institutional reform and diaspora entrepreneurship from diaspora entrepreneurs, this paper makes important contribution to the entrepreneurship literature.

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Diaspora entrepreneurs’ push and pull institutional factors for investing in Africa: Insights from African returnees from the United Kingdom

Abstract: The version in the Kent Academic Repository may differ from the final published version. Users are advised to check http://kar.kent.ac.uk for the status of the paper. Users should always cite the published version of record.

Cited by 34 publications

References 104 publications

Trusting in indigenous institutions: exporting SMEs in Nigeria

Trusting in indigenous institutions: exporting SMEs in Nigeria

Socio-cultural and institutional factors of the investment potential of the regions of the Russian Federation

Institutional reforms, control of corruption, and diaspora entrepreneurship: insights and perspectives on America's poorest economy

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