Multinationals, Capital Export, and the Inclusive Development Debate in Developing Countries: The Nigerian Insight

Abstract

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) confirms the proposition that, faced with a similar degree of uncertainty and constrained institutional environment and laying claims to differing sources of competitive advantage, both local and foreign MNCs would repatriate profits 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 benefits, 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.

Organization culture types and the replication of transferred human resource management practices in multinational subsidiaries in Nigeria

“…Labor laws require union bodies to play an important role in the employee-employer relationship, including making important decisions around pay, dispute resolution and termination of employment. However, with unemployment levels that are high at 33% (Sasu, 2022) the regulatory institutional environment is weak in enforcing labor laws (Ezeoha et al ., 2022). Arguably, this may give employers some liberty to easily introduce work-related policies (e.g.…”