153
Views
0
CrossRef citations to date
0
Altmetric
Research Articles

Foreign ownership and firm performance in Sub-Saharan Africa

, ORCID Icon &
Pages 418-437 | Received 13 Jan 2021, Accepted 12 May 2022, Published online: 02 Jun 2022

References

  • Abeberese, A.B. (2017). Electricity cost and firm performance: Evidence from India. The Review of Economics and Statistics, 99, 839–852. doi:10.1162/REST_a_00641
  • Adegboye, A.C., & Iweriebor, S. (2018). Does access to finance enhance SME innovation and productivity in Nigeria? Evidence from the World Bank enterprise survey. African Development Review, 30, 449–461. doi:10.1111/1467-8268.12351
  • Agarwal, S., & Ramaswami, S.N. (1992). Choice of foreign market entry mode: Impact of ownership, location and internalisation factors. Journal of International Business Studies, 23, 1–27. doi:10.1057/palgrave.jibs.8490257
  • Alfaro, L., & Chen, M.X. (2012). Surviving the global financial crisis: Foreign ownership and establishment performance. American Economic Journal: Economic Policy, 4, 30–55. doi:10.1257/pol.4.3.30
  • Alili, M.Z. (2018). Do foreign-owned firms provide more formal training than their domestic counterparts? European Journal of Sustainable Development, 7, 302–316. doi:10.14207/ejsd.2018.v7n4p302
  • Amendolagine, V., & Prota, F. (2021). Bilateral investment treaties and backward linkages in Sub-Saharan Africa. International Economics, 165, 172–185. doi:10.1016/j.inteco.2021.01.001
  • Aydin, N., Sayim, M., & Yalama, A. (2007). Foreign ownership and firm performance: Evidence from Turkey. International Research Journal of Finance and Economics, 11, 103–111.
  • Baldauf, A., Cravens, D.W., & Wagner, U. (2000). Examining determinants of export performance in small open economies. Journal of World Business, 35, 61–79. doi:10.1016/S1090-9516(99)00034-6
  • Bandick, R., & Karpaty, P. (2011). Employment effects of foreign acquisition. International Review of Economics & Finance, 20, 211–224. doi:10.1016/j.iref.2010.06.001
  • Barzin, S., D'Costa, S., & Graham, D.J. (2018). A pseudo–panel approach to estimating dynamic effects of road infrastructure on firm performance in a developing country context. Regional Science and Urban Economics, 70, 20–34. doi:10.1016/j.regsciurbeco.2018.02.002
  • Becchetti, L., & Rossi, S.P. (2000). The positive effect of industrial district on the export performance of Italian firms. Review of Industrial Organization, 16, 53–68. doi:10.1023/A:1007783900387
  • Benfratello, L., & Sembenelli, A. (2006). Foreign ownership and productivity: Is the direction of causality so obvious? International Journal of Industrial Organization, 24, 733–751. doi:10.1016/j.ijindorg.2005.07.012
  • Boddin, D., Raff, H., & Trofimenko, N. (2017). Foreign ownership and the export and import propensities of developing-country firms. The World Economy, 40, 2543–2563. doi:10.1111/twec.12547
  • Bonin, J.P., Hasan, I., & Wachtel, P. (2005). Bank performance, efficiency and ownership in transition countries. Journal of Banking & Finance, 29, 31–53. doi:10.1016/j.jbankfin.2004.06.015
  • Borin, A., & Mancini, M. (2016). Foreign direct investment and firm performance: An empirical analysis of Italian firms. Review of World Economics, 152, 705–732. doi:10.1007/s10290-016-0255-z
  • Bouazza, A.B., Ardjouman, D., & Abada, O. (2015). Establishing the factors affecting the growth of small and medium-sized enterprises in Algeria. American International Journal of Social Science, 4, 101–115.
  • Bryan, J. (2006). Training and performance in small firms. International Small Business Journal: Researching Entrepreneurship, 24, 635–660. doi:10.1177/0266242606069270
  • Buckley, P.J., & Casson, M. 1976. A long-run theory of the multinational enterprise. In The future of the multinational enterprise (pp. 32–65). London: Palgrave Macmillan.
  • Bykova, A., & Lopez-Iturriaga, F. (2018). Exports-performance relationship in Russian manufacturing companies: Does foreign ownership play an enhancing role? Baltic Journal of Management, 13, 20–40. doi:10.1108/BJM-04-2017-0103
  • Carney, M., Estrin, S., Liang, Z., & Shapiro, D. (2019). National institutional systems, foreign ownership and firm performance: The case of understudied countries. Journal of World Business, 54, 244–257. doi:10.1016/j.jwb.2018.03.003
  • Chauvet, L., And., & Jacolin, L. (2017). Financial inclusion, bank concentration, and firm performance. World Development, 97, 1–13. doi:10.1016/j.worlddev.2017.03.018
  • Chowdhury, A., & Mavrotas, G. (2006). FDI and growth: What causes what? The World Economy, 29, 9–19. doi:10.1111/j.1467-9701.2006.00755.x
  • Chuang, Y., & Hsu, P. (2004). FDI, trade, and spillover efficiency: Evidence from China’s manufacturing sector. Applied Economics, 36, 1103–1115. doi:10.1080/0003684042000246812
  • Claessens, S., & Djankov, S. (1999). Ownership concentration and corporate performance in the Czech Republic. Journal of Comparative Economics, 27, 498–513. doi:10.1006/jcec.1999.1598
  • Coad, A., Segarra, A., & Teruel, M. (2016). Innovation and firm growth: Does firm age play a role? Research Policy, 45, 387–400. doi:10.1016/j.respol.2015.10.015
  • Cole, M.A., Elliott, R.J., Occhiali, G., & Strobl, E. (2018). Power outages and firm performance in Sub-Saharan Africa. Journal of Development Economics, 134, 150–159. doi:10.1016/j.jdeveco.2018.05.003
  • Cuervo-Cazurra, A., & Genc, M. (2008). Transforming disadvantages into advantages: Developing-country MNEs in the least developed countries. Journal of International Business Studies, 39, 957–979. doi:10.1057/palgrave.jibs.8400390
  • Das, K.C., & Mahalik, M.K. (2020). International subsidiary performance of Indian multinationals in the extractive sector: The role of institutional quality, corruption and investment regime. Resources Policy, 67, 101664. doi:10.1016/j.resourpol.2020.101664
  • Dehejia, R.H., & Wahba, S. (2002). Propensity score-matching methods for nonexperimental causal studies. Review of Economics and Statistics, 84, 151–161. doi:10.1162/003465302317331982
  • Dimelis, S., & Louri, H. (2002). Foreign ownership and production efficiency: A quantile regression analysis. Oxford Economic Papers, 54, 449–469. doi:10.1093/oep/54.3.449
  • Dollar, D., Hallward-Driemeier, M., & Mengistae, T. (2005). Investment climate and firm performance in developing economies. Economic Development and Cultural Change, 54, 1–31. doi:10.1086/431262
  • Doucouré, B., & Diagne, A. (2020). The effect of size and age on the performance of Senegalese small food companies: The role of market orientation. Transnational Corporations Review, 12, 349–359. doi:10.1080/19186444.2020.1832426
  • Douma, S., George, R., & Kabir, R. (2006). Foreign and domestic ownership, business groups, and firm performance: Evidence from a large emerging market. Strategic Management Journal, 27, 637–665. doi:10.1002/smj.535
  • Dunning, J.H., & Lundan, S.M. 2008. Multinational enterprises and the global economy. Cheltenham, UK: Edward Elgar Publishing.
  • Dunning, J.H. 1977. Trade, location of economic activity and the MNE: A search for an eclectic approach. In The international allocation of economic activity (pp. 395–418). London: Palgrave Macmillan.
  • Dunning, J.H. (1988). The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19, 1–31. doi:10.1057/palgrave.jibs.8490372
  • Esaku, S. (2021). Export markets and firm productivity in Sub-Saharan Africa. Journal of African Business, 22, 254–273. doi:10.1080/15228916.2019.1695190
  • Escribano, A., & Guasch, J.L. 2005. Assessing the impact of the investment climate on productivity using firm-level data: Methodology and the case of Guatemala, Honduras and Nicaragua. World Bank Policy Research Working Paper, No. 3621. Washington, DC: The World Bank.
  • Filatotchev, I., Stephan, J., & Jindra, B. (2008). Ownership structure, strategic controls and export intensity of foreign-invested firms in transition economies. Journal of International Business Studies, 39, 1133–1148. doi:10.1057/palgrave.jibs.8400404
  • Fowowe, B. (2017). Access to finance and firm performance: Evidence from African countries. Review of Development Finance, 7, 6–17. doi:10.1016/j.rdf.2017.01.006
  • Gaviria, A. (2002). Assessing the effects of corruption and crime on firm performance: Evidence from Latin America. Emerging Markets Review, 3, 245–268. doi:10.1016/S1566-0141(02)00024-9
  • Gelubcke, J.P.W. (2013). The performance of foreign affiliates in German manufacturing: Evidence from a new database. Review of World Economics, 149, 151–182.
  • Gelübcke, W., & Philipp, J. (2013). Foreign ownership and firm performance in German services. The Service Industries Journal, 33, 1564–1598.
  • Gorg, H., Strobl, E., & Walsh, F. (2007). Why do foreign-owned firms pay more? The role of on-the-job training. Review of World Economics, 143, 464–482. doi:10.1007/s10290-007-0117-9
  • Guest, P.M. (2009). The impact of board size on firm performance: Evidence from the UK. The European Journal of Finance, 15, 385–404. doi:10.1080/13518470802466121
  • Gurbuz, A.O., & Aybars, A. (2010). The impact of foreign ownership on firm performance, evidence from an emerging market: Turkey. American Journal of Economics and Business Administration, 2, 350–359. doi:10.3844/ajebasp.2010.350.359
  • Halkos, G.E., & Tzeremes, N.G. (2007). Productivity efficiency and firm size: An empirical analysis of foreign owned companies. International Business Review, 16, 713–731. doi:10.1016/j.ibusrev.2007.06.002
  • Hallward-Driemeier, M., & Pritchett, L. (2015). How business is done in the developing world: Deals versus rules. Journal of Economic Perspectives, 29, 121–140. doi:10.1257/jep.29.3.121
  • Hallward‐Driemeier, M., Wallsten, S., & Xu, L.C. (2006). Ownership, investment climate and firm performance: Evidence from Chinese firms. The Economics of Transition, 14, 629–647. doi:10.1111/j.1468-0351.2006.00267.x
  • Hamdan, A. (2018). Board interlocking and firm performance: The role of foreign ownership in Saudi Arabia. International Journal of Managerial Finance, 14, 266–281. doi:10.1108/IJMF-09-2017-0192
  • Hamori, M., & Koyuncu, B. (2015). Experience matters? The impact of prior CEO experience on firm performance. Human Resource Management, 54, 23–44. doi:10.1002/hrm.21617
  • Harlow, H. (2008). The effect of tacit knowledge on firm performance. Journal of Knowledge Management, 12, 148–163. doi:10.1108/13673270810852458
  • Hawawini, G., Subramanian, V., & Verdin, P. (2003). Is performance driven by industry – or firm – specific factors? A new look at the evidence. Strategic Management Journal, 24, 1–16. doi:10.1002/smj.278
  • Hijzen, A., Martins, P.S., Schank, T., & Upward, R. (2013). Foreign-owned firms around the world: A comparative analysis of wages and employment at the micro-level. European Economic Review, 60, 170–188. doi:10.1016/j.euroecorev.2013.02.001
  • Hoenen, A.K., & Hansen, M.W. (2009). Oligopolistic competition and foreign direct investment: (Re-) integrating the strategic management perspective in the theory of multinational corporations. In CBDS working paper series (pp. 1–26). Frederiksberg, Denmark: Copenhagen Business School.
  • Huttunen, K. (2007). The effect of foreign acquisition on employment and wages: Evidence from Finnish establishments. Review of Economics and Statistics, 89, 497–5096. doi:10.1162/rest.89.3.497
  • Hymer, S.H. 1960. The international operations of national firms: A study of direct foreign investment (PhD thesis). Massachusetts Institute of Technology, Cambridge, MA, USA.
  • Hymer, S.H. 1976. The international operations of national firms: A study of direct foreign investment (Vol. 14, pp. 139–155). Cambridge MA: MIT Press.
  • Iimi, A., Humphrey, R.M., & Melibaeva, S. 2015. Firm productivity and infrastructure costs in East Africa. World Bank Policy Research Working Paper, No. 7278. Washington, DC: The World Bank.
  • Islam, A., & Hyland, M. (2019). The drivers and impacts of water infrastructure reliability–A global analysis of manufacturing firms. Ecological Economics, 163, 143–157. doi:10.1016/j.ecolecon.2019.04.024
  • Iwasaki, I., Ma, X., & Mizobata, S. (2022). Ownership structure and firm performance in emerging markets: A comparative meta-analysis of East European EU member states, Russia and China. Economic Systems, 100945. https://www.sciencedirect.com/science/article/pii/S0939362522000073, doi:10.1016/j.ecosys.2022.100945
  • Kindleberger, C.P. 1969 American business abroad: Six lectures on direct investment. New Haven, CT; London: Yale University Press.
  • Kipesha, E.F. (2013). Impact of size and age on firm performance: Evidence from microfinance institution in Tanzania. Research Journal of Finance and Accounting, 4, 105–116.
  • Koch, M., & Smolka, M. (2019). Foreign ownership and skill-biased technological change. Journal of International Economics, 118, 84–104. doi:10.1016/j.jinteco.2019.01.017
  • Koellinger, P. (2008). The relationship between technology, innovation, and firm performance—empirical evidence from e-business in Europe. Research Policy, 37, 1317–1328. doi:10.1016/j.respol.2008.04.024
  • Lewis, W.A. (1954). Economic development with unlimited supplies of labour. The Manchester School, 22, 139–191. doi:10.1111/j.1467-9957.1954.tb00021.x
  • Lindemanis, M., Loze, A., & Pajuste, A. (2022). The effect of domestic to foreign ownership change on firm performance in Europe. International Review of Financial Analysis, 81, 101341. doi:10.1016/j.irfa.2019.04.004
  • Lipsey, R.E., & Sjöholm, F. (2004). FDI and wage spillovers in Indonesian manufacturing. Review of World Economics, 140, 321–332. doi:10.1007/BF02663651
  • Lundan, S.M. (2010). What are the ownership advantages? Multinational Business Review, 18, 51–70. doi:10.1108/1525383X201000010
  • Majumdar, S.K. (1997). The impact of size and age on firm-level performance: Some evidence from India. Review of Industrial Organization, 12, 231–241. doi:10.1023/A:1007766324749
  • Makhija, M. (2003). Comparing the resource-based and market-based views of the firm: Empirical evidence from Czech privatisation. Strategic Management Journal, 24, 433–451. doi:10.1002/smj.304
  • Mallick, S., & Yang, Y. (2013). Productivity performance of export market entry and exit: Evidence from Indian firms. Review of International Economics, 21, 809–824. doi:10.1111/roie.12072
  • Mattoo, A., Olarreaga, M., & Saggi, K. (2004). Mode of foreign entry, technology transfer, and FDI policy. Journal of Development Economics, 75, 95–111. doi:10.1016/j.jdeveco.2003.08.002
  • Mullen, C., & O’Hagan Luff, M. (2018). Alphabet soup: The relationship between multinationality and firm performance. Transnational Corporations Review, 10, 409–423. doi:10.1080/19186444.2018.1556519
  • Muritala, T.A. (2012). An empirical analysis of capital structure on firms’ performance in Nigeria. International Journal of Advances in Management and Economics, 1, 116–124.
  • Nachum, L., & Rolle, J.D. (1999). Home country and firm-specific ownership advantages: A study of US, UK, and French advertising agencies. International Business Review, 8, 633–660. doi:10.1016/S0969-5931(99)00023-2
  • Nair‐Reichert, U., & Weinhold, D. (2001). Causality tests for cross‐country panels: A new look at FDI and economic growth in developing countries. Oxford Bulletin of Economics and Statistics, 63, 153–171. doi:10.1111/1468-0084.00214
  • Nakos, G., Brouthers, K.D., & Brouthers, L.E. (1998). The impact of firm and managerial characteristics on small and medium-sized Greek firms' export performance. Journal of Global Marketing, 11, 23–47. doi:10.1300/J042v11n04_03
  • Nkiwane, P., & Chipeta, C. (2019). The performance of cross-border acquisitions targeting African firms. Emerging Markets Review, 39, 68–82. doi:10.1016/j.ememar.2019.03.004
  • Okafor, G. (2017). The determinants of firm performance and bribery: Evidence from manufacturing firms in Nigeria. International Economic Journal, 31, 647–669. doi:10.1080/10168737.2017.1380678
  • Othmani, H. (2022). Foreign institutional ownership and bank performance: Evidence from Tunisia. African Development Review, 34, 42–53. doi:10.1111/1467-8268.12625
  • Pastore, F., Webster, A., & Hope, K. (2021). Assessing the role of women in tourism related sectors in the Caribbean. International Journal of Tourism Research, 23, 378–400. doi:10.1002/jtr.2413
  • Phung, D.N., & Mishra, A.V. (2016). Ownership structure and firm performance: Evidence from Vietnamese listed firms. Australian Economic Papers, 55, 63–98. doi:10.1111/1467-8454.12056
  • Raff, H., & Wagner, J. (2014). Foreign ownership and the extensive margins of exports: Evidence for manufacturing enterprises in Germany. The World Economy, 37, 579–591. doi:10.1111/twec.12157
  • Rosenbaum, P.R., & Rubin, D.B. (1983). The central role of the propensity score in observational studies for causal effects. Biometrika, 70, 41–55. doi:10.1093/biomet/70.1.41
  • Shahbaz, M., Nasreen, S., Abbas, F., & Anis, O. (2015). Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries? Energy Economics, 51, 275–287. doi:10.1016/j.eneco.2015.06.014
  • Singh, D.A. (2009). Export performance of emerging market firms. International Business Review, 18, 321–330. doi:10.1016/j.ibusrev.2009.03.002
  • Soehadi, A.W. 2001. The relationship between market orientation, supplier partnership, environmental factors, and firm performance in Indonesian retail firms (PhD thesis). University of Strathclyde, Glasgow, UK.
  • Tang, Y., & Zhang, K.H. (2016). Absorptive capacity and benefits from FDI: Evidence from Chinese manufactured exports. International Review of Economics & Finance, 42, 423–429. doi:10.1016/j.iref.2015.10.013
  • Teece, D.J. (1986). Transactions cost economics and the multinational enterprise an assessment. Journal of Economic Behavior & Organization, 7, 21–45. doi:10.1016/0167-2681(86)90020-X
  • Teece, D.J. (2006). Reflections on the Hymer thesis and the multinational enterprise. International Business Review, 15, 124–139. doi:10.1016/j.ibusrev.2005.11.003
  • Teece, D.J. (2014). A dynamic capabilities-based entrepreneurial theory of the multinational enterprise. Journal of International Business Studies, 45, 8–37. doi:10.1057/jibs.2013.54
  • Thompson, E.R. (2002). Clustering of foreign direct investment and enhanced technology transfer: Evidence from Hong Kong garment firms in China. World Development, 30, 873–889. doi:10.1016/S0305-750X(02)00009-8
  • Thornhill, S. (2006). Knowledge, innovation and firm performance in high-and low-technology regimes. Journal of Business Venturing, 21, 687–703. doi:10.1016/j.jbusvent.2005.06.001
  • Tuong, P.V., Binh, D.T., & Hoa, N.D. (2019). Impact of transport infrastructure on firm performance: Case study of Cuu Long Delta Area, Vietnam. Problems and Perspectives in Management, 17, 51–62.
  • UNCTADstat. (2018). Foreign direct investment flows and stocks. Geneva: United Nations Conference on Trade and Development. https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx?sCS_ChosenLang=en
  • Vandenberg, P., & Trinh, L.Q. 2016. Small firms, human capital, and productivity in Asia. ADBI Working Paper Series No. 582. Tokyo: Asian Development Institute.
  • Wang, D.T., Gu, F.F., David, K.T., & Yim, C.K.B. (2013). When does FDI matter? The roles of local institutions and ethnic origins of FDI. International Business Review, 22, 450–465. doi:10.1016/j.ibusrev.2012.06.003
  • Wang, J., & Wang, X. (2015). Benefits of foreign ownership: Evidence from foreign direct investment in China. Journal of International Economics, 97, 325–338. doi:10.1016/j.jinteco.2015.07.006
  • Wang, X., & Piesse, J. 2009. Economic development and surplus labour: A critical review of the Lewis model. Brooks World Poverty Institute Working Paper, No. 89. Manchester: University of Manchester.
  • WBES. (2011). World Bank’s enterprise survey: Understanding the questionnaire. Washington, DC: The World Bank.
  • Xu, J., Liu, Y., & Abdoh, H. (2022). Foreign ownership and productivity. International Review of Economics & Finance, 80, 624–642. doi:10.1016/j.iref.2022.02.079
  • Xu, L., Zhang, Q., Wang, K., & Shi, X. (2020). Subsidies, loans, and companies' performance: Evidence from China's photovoltaic industry. Applied Energy, 260, 114280. doi:10.1016/j.apenergy.2019.114280
  • Zeitun, R., & Gang, T.G. (2007). Does ownership affect a firm’s performance and default risk in Jordan? Corporate Governance: The International Journal of Business in Society, 7, 66–82. doi:10.1108/14720700710727122
  • Zeufack, A. (2001). Export performance in Africa and Asia's manufacturing: Evidence from firm‐level data. Journal of African Economics, 10, 258–281. doi:10.1093/jae/10.3.258
  • Zhang, A., Zhang, Y., & Zhao, R. (2003). A study of the R&D efficiency and productivity of Chinese firms. Journal of Comparative Economics, 31, 444–464. doi:10.1016/S0147-5967(03)00055-6
  • Zhang, P., Wierschem, D., Mendez Mediavilla, F.A., & Hong, K.P. (2016). An empirical investigation on CEO turnover in IT firms and firm performance. Journal of International Technology and Information Management, 25, 67–82.
  • Zoogah, D.B. (2018). Natural resource endowment and firm performance: The moderating role of institutional endowment. Global Strategy Journal, 8, 578–611. doi:10.1002/gsj.1169

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.